Private equity and venture capital investors have spurred these Idaho businesses | Opinion
Idaho’s economic landscape is prospering, significantly bolstered by the robust influence of private equity (PE) and venture capital (VC) investments. As we celebrate these advancements, let’s recognize how these financial tools are not just about numbers — they are a lifeline to Idaho small businesses and boost our local economy.
The active participation of local Idaho PE and VC firms exemplifies Idaho’s commitment to fostering a business-friendly environment. I have seen this firsthand as a cofounder of Capital Eleven, specializing in private equity, early-stage venture capital and real estate development. Smart and effective policies at the state and local levels have helped Capital Eleven and other Idaho PE and VC firms play a pivotal role in channeling capital toward innovative, high-potential companies in Idaho, which has led to job creation and improved quality of life.
Private equity significantly contributes to Idaho’s economy, particularly among small businesses. With 147 PE-backed small businesses in Idaho, these investments have helped preserve and grow jobs that are the backbone of local economies. In 2020 alone, $1.94 billion was invested in 63 private equity-backed companies, supporting 55,000 employees across Idaho.
In 2022, Idaho saw an impressive influx of $2.66 billion in PE investments, demonstrating a solid vote of confidence from the financial community. This investment has translated into substantial job creation — 61,000 jobs statewide are supported by private equity, with 12,740 critical positions rooted in small businesses. These numbers aren’t just statistics; they represent families supported, dreams nurtured, and communities sustained.
Looking ahead, the Treasure Valley’s emerging status as a tech hub adds another layer of excitement. The valley’s growing startup scene, supported by pro-business policies, affordable energy, and a focus on decentralization, positions Idaho as a prime destination for new ventures and continuous economic dynamism. The Treasure Valley is experiencing an economic renaissance, with growth across various sectors. In the past decade, VC investment in Idaho grew from $8 million in 2013 to $145 million in 2023, with job growth doubling the national average between 2017 and 2022.
Some notable successes highlighting the region’s appeal for major global tech investments include Boise-based Cradlepoint being acquired for $1.1 billion, Clearwater Analytics’ multi-billion-dollar IPO and TSheets being sold to Intuit for $340 million. Currently, Idaho VC investors are making investments in numerous small and growing Idaho tech companies that are creating high-paying jobs, spurring innovation, and will lead to more large acquisitions and IPOs.
It’s also essential to highlight the symbiotic relationship between public investments and private returns. Idaho’s Public Employee Retirement System’s $1.7 billion investment in PE, which yielded a commendable 13.5% return over ten years, is a testament to the prudence and potential of equity investments. These returns are crucial as they support the pensions of our teachers, firefighters, and other public employees, directly enhancing the financial security of those who serve our community.
Idaho’s future is bright, powered by the continued flow of strategic investments through private equity and venture capital right here in Idaho. These financial partners fuel economic growth and innovation and provide the foundation for lasting prosperity, ensuring that Idaho businesses, employees and communities continue to thrive. As we approach Small Business Saturday in November, let us support our local Idaho businesses, which are increasingly supported by Idaho private equity and venture capital. This backing is essential for keeping doors open and jobs available while fostering a vibrant community where innovation and prosperity flourish in our state.