NEW: Portland Startup Accelerator PIE Shuts Down

Thursday, September 17, 2015

Brendan Murray, GoLocalPDX Contributor

The Portland Incubator Experiment, also known as PIE, the startup engine powered by advertising giant Wieden and Kennedy that invested money and resources in up-and-coming businesses in the city has shut down, according to a blog post on PIE's website.

In the post, Rick Turoczy, one of PIE's founders, said the experiment was “neither a raving success nor a miserable failure.”

“It was a good experiment that ran efficiently and effectively,” Turoczy wrote. “We ran it so efficiently in fact, that instead of ending with the three classes we’d planned, we wedged in a fourth. And now, after a lot of late nights, intensive mentoring, tears, cheers, and four graduated classes, we are proud to have had a hand in supporting a diverse portfolio of companies and a dynamic pool of incredible mentors from around the world who continue to be connected to the Portland startup scene.”

Mark Grimes, founder of NedSpace, a company that leases office space and resources to startups, told GoLocal he is not surprised by the shuttering of the experiment, considering they had not funded a new business in over a year.

He also said that he believes the Portland startup scene will not fall apart without PIE.

“There are lots of other resources in Portland for startups,” he said, referencing projects such as the Portland seed fund,” Grimes said. “There are other places that will invest just as heavily in early startup companies so there are still other opportunities to get those resources.”

A Noble Experiment

In his post on PIE's blog, Turoczy said he, nor anyone else involved with the project, expected to become an accelerator for startups in the area, but it evolved into one organically.

“As such, PIE has spent five of the last six years building an accelerator program. Borrowing ideas from industry leaders like Y Combinator and Techstars — and imbuing them with a distinctly Portland flavor,” Turoczy said. “In so doing, we created a platform that continues to explore how to help a wide range of startups and growth-stage companies. We found ways to collaborate with the largest privately held creative agency in the world — an agency with “Fail harder” built into its DNA — and the global brands that agency continues to attract as clients. We even had our share of exits with companies like AppThwack, Nutmeg, and Orchestrate.”

Turoczy also promised in his post that PIE was not merely disappearing into thin air, but reorganizing. He declared that PIE will return, better than ever, before too long.

Filling the Gap

Grimes, with NedSpace, said that companies will most miss the opportunity to interact with some of Wieden and Kennedy's more high-profile advertising customers, such as Nike. He did admit, however, that those crossovers were rarely successful.

He said that for the other resources PIE offered to startups—things like funding, advertising and mentoring— there are plenty of other venues to find those offered.

“The physical space doesn't really matter and there are certainly other places for startups to go,” he said. “In terms of funding—those $18,000 to $25,000 investments they were offering—that can also be found through other resources.”

Grimes also said he did not expect startups in the area to take a hit because the man behind the magic would still be in town, doing what he can to help fledgling businesses in Portland.

“I don't think you'll see too much of a hit,” he said. “Rick was really the man and the engine behind all that and he's still going to be around, still going to be supporting startups and other young businesses in the area.”

Related Slideshow: 10 Takeaways From Portland’s Startup Week

In case you missed it, here are some of the highlights from Portland's Startup Week:

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#1

Women in Tech

The low number of women in the tech industry has become a national issue. At Portland’s Startup Week, events addressed what businesses and women can do about it.

Ingrid Alongi, Co- CEO of Quick Left, gave a presentation outlining ways companies can better include and encourage women in a male-dominated field. Interviewing techniques, team-building exercises, and open feedback channels were some of her seven ways leadership can address the problem.

“I wanted to talk about it on a personal level. It doesn’t take a lot of effort to do these things that are really impactful,” Alongi said.

A separate panel of local tech women professionals discussed ways to get women interested in the industry as well.

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#2

Parties

There may have been serious discussions and topics, but there were plenty of opportunities to cut loose and have fun. Every night, some sort of happy hour or party gave techies and startups the chance to mingle and enjoy food and drink.

PDX Code Guild Founder Sheri Dover said her organization’s party on Monday night was a great opportunity for new talent and experienced advisors to get to know eachother.

“It helps to get everyone together in the same room and build community,” Dover said.

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#3

Attracting Talent

Portland is a booming tech scene, but many tech companies are scrambling to find talented people to fill positions. Participants discussed ways to attract successful talent to the city and state. Founders and tech professionals agreed there are plently open seats to fill in the city.

Brian Henessy, the founder of Thread, said that many young adults move to the state for lifestyle reasons, rather than to make a fortune. Working with staff to meet their needs is one way businesses can draw employees, Henessy said.

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#4

New Generations in Tech

One way to get the needed talent is to create it. Part of Startup Week was to interest young adults or people seeking a change into starting a tech career. Dover said their event and others show people they can start a tech career without a computer science degree.

“In hopes to create more talent, you need to appeal to students and teach skills to help change the tech world,” Dover said.

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#5

Scott Kveton and The Cancled Event

A panel discussion by Ignite Bridgetown was canceled, surrounding a controversy with Scott Kevton.

When CEO of Qcut Crystal Beasley heard that Former Urban Airship CEO Scott Kveton, who stepped down last year after rape accusations, would be a speaker at Ignite Bridgetown, she reached out to organizers.

“It was way too soon for [Kveton] to represent the Portland tech scene,” Beasley said.

After organizers told Beasley the event would still include Kveton, she wrote a post on her blog protesting his involvement and the struggle of women in the tech industry.

Kevton then posted his own statement denying accusations against him, but removing himself from the event,“out of respect for the community.”

Afterwards, Ignite canceled the event, apologizing for any damage they may have caused.

Photo Credit: madame.furie via Compfight cc

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#6

Supporting Startups

Many organizations involved, such as UpGlobal who hosted the week, specialize in building, supporting and mentoring startups. These organizations are dedicated to helping Portland’s startup scene get the help it needs.

However, Hennessy observed there seemed to be more of those organizations involved than actual startups.

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#7

Community Encouragement

Startups who gathered for the week not only got the chance to share about their own companies, but also to learn and hear from others. Henessy said it was encouraging to see common themes at the events and discussions, revealing other startups had similar feelings and experiences.

“It feels good to know you’re not alone,” Henessy said.

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#8

Open Houses

Several startups held open houses during the week, giving people the chance to explore companies in Portland. Krystal South is the program manager of Oregon Story Board.

"Portland Startup Week brought the startup community to multiple locations throughout the city,” South said. “I was able to visit companies and spaces that I wouldn't have seen otherwise. It was great to see startups and entrepreneurs in their natural environments."

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#9

Bigger Than Portland

Although it was Portland Startup Week, companies from across Oregon came to the event. One discussion, “Startup Week Is Every Week, And Not Just In Portland,” featured startup-leaders sharing challenges from operating outside the metro area, and ways to create businesses in rural Oregon.

It also brought visitors from out-of-state.

"I met multiple people who were visiting Portland for Startup Week, who were interested in moving or starting their businesses in Oregon," South said. "Startup Week was a great cross-section of the community events that happen in the city year-round."

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#10

Start of a Culture

This was the first Startup Week for Portland, but attendees feel the event will continue to expand and evolve in years to come. Although the time was productive, Henessy said the event has room to grow.

With the positive energy surrounding the week, Henessy said he would not be surprised to see it acquire the culture and enthusiasm that surrounds Portland’s Design Week.