2023 was a year of navigating challenges. From startups learning hard lessons about bank stability to companies and workers figuring out how artificial intelligence advances will or will not disrupt their livelihoods. Here are some of the top tech stories of the year:
SVB
The year started with a bang for startups — and not in a good way. The collapse of Silicon Valley Bank, a favorite financial partner for startups and investors, sent the community scrambling before the federal government stepped in to say that all depositors would be protected, even if their accounts surpassed the $250,000 FDIC insurance threshold. Soon after SVB collapsed, another investor and startup bank, First Republic, was seized and sold to JPMorgan Chase. There were lessons learned about diversifying bank accounts, but the turmoil set the stage for the next big story of the year.
VC sinks
After years of historic venture capital investing — minus the first pandemic year of 2020 — venture activity in Portland plummeted this year driven by the pull back of outside firms. Local investors have said their activity remained the same as previous years, but overall the amount invested into area startups for the first three quarters of the year was off 59% from where it was the same time last year, according to the quarterly Venture Monitor report. It's sent founders looking for alternative capital sources.
AI everywhere
2023 was the year generative AI exploded. A technology that was largely in the background hit the zeitgeist and companies that have always had AI brought it to the forefront of their talking points, new AI-focused companies launched and every executive was looking at how tools like ChatGPT could be used in their business. Portland-area companies found multiple ways to get in the mix. Chipmakers Intel and Ampere Computing are banking on providing the compute power for these tools, ZoomInfo is incorporation more AI into its existing tools, startup Hello Wonder wants to use the technology to help children navigate the internet, while MyRadar is using AI to help detect wildfires.
Vacasa struggles
Vacasa CEO Rob Greyber started the year telling Wall Street that 2023 would be a transition year for the vacation rental property management company. The company cut 17% of its workforce in January and Greyber’s new executive team is focused on improving execution at the company that has spent most of its life growing at break neck speed. However, the macro environment isn’t doing it any favors. Vacasa is seeing churn among its homeowners that Greyber has pinned on declining rental prices as the sector isn’t commanding the same premiums it was in 2021 and 2022. The company’s stock was languishing earlier in the year falling below $1 and Nasdaq listing requirements. It underwent a 1-for-20 reverse stock split in October to regain compliance.
Cannabis
It was a tough year for cannabis companies. The state continued to see an oversupply that sent prices down and saw two major players in turmoil. Multistate operator Curaleaf Holdings closed its Oregon operations and Chalice Brands, one of the state’s largest companies, filed for creditor protections to restructure. At the same time state regulators moved to tie cannabis retail licenses to tax compliance following a scandal involving the retail chain La Mota and former Secretary of State Shemia Fagan. However, one bright spot forming for the industry is the possibility of federal rescheduling of cannabis that could offer business tax and other relief to cannabis businesses.
