Beyond the Valley: Two Northwest Startups Thrive Outside Tech Hubs

While the Pacific Northwest boasts established technology centers in Seattle and Portland, the region's venture funding landscape extends well beyond these traditional hubs. Crunchbase data reveals that since January 2014, the five-state region encompassing Idaho, Oregon, Montana, Washington, and Wyoming has attracted funding to 603 seed and early-stage companies. Seattle captured 48 percent of this activity, with an additional 15 percent flowing to other King County locations and another 15 percent to Portland, leaving 128 companies scattered throughout the remaining areas. Among these geographically dispersed startups, two companies that secured funding after 2017 have discovered distinct advantages in their non-hub locations.

Missoula, Montana: onX

onX, established in 2009 in Missoula, operates as a digital mapping platform designed to assist sport hunters in navigating terrain during hunting expeditions. The company's offerings—the onX Hunt App and onX Hunt Chip—provide users with topographical maps that distinguish between private and public land boundaries.

It's the hunter's responsibility to know where they can legally hunt… Having a tool like this has been very powerful for hunters to easily access public lands that are not marked.

Evan Davies, brand director at onX

Beyond hunters, the platform serves more than 2,000 wildlife officers and has strengthened relationships between landowners and the hunting community. Despite the company's deep roots in Missoula's culture and community, which shaped its development, onX now reaches hundreds of thousands of users nationwide. Davies noted that only approximately 7 percent of the company's customer base resides in Montana, underscoring its national reach.

The company's growth trajectory attracted significant outside investment in February 2018, when it closed a $20.3 million Series A round. Boston-based Summit Partners led the round, with participation from Silicon Valley's Bessemer Venture Partners and other investors. This marked the company's first institutional funding.

Investors are beginning to realize that geography doesn't guarantee the best new ideas. We've been seeing a lot of growth in the hunting tech industry over the years and that upward trend wont stop anytime soon. Opportunities exist everywhere.

Evan Davies

onX intends to deploy the capital toward expanding operations in both Missoula and Bozeman while developing comprehensive off-pavement mapping datasets for hunters, hikers, fishers, and other outdoor recreation enthusiasts.

Spokane, Washington: Stay Alfred

Stay Alfred, launched in 2011 by U.S. Army veteran Jordan Allen, operates as a short-term urban vacation rental platform that merges apartment-style flexibility with hotel-grade service standards. The Spokane-based company secured a $15 million Series A in January 2017 from a Seattle-based private equity firm, representing its inaugural institutional capital.

The trend information is clear: Travelers, both business and leisure, want the opportunity to experience a city on a local level and enjoy the benefits of home, like a full kitchen, washer and dryer, and separate rooms for larger travel groups.

Jordan Allen, founder of Stay Alfred

The company operates across 22 U.S. cities, from San Diego to Atlanta, having added ten new markets since completing its Series A. Financial performance has shown consistent expansion: the company generated $13.5 million in revenue during 2015, $25 million in 2016, and $34.8 million in 2017.

Allen acknowledged that Spokane's location outside major tech centers presents both operational benefits and fundraising challenges. He explained that the company faced heightened scrutiny from venture investors initially and that maintaining strong connections with the VC community requires deliberate effort despite the company's geographic distance from traditional hubs.

We had to initially prove ourselves a little bit more to the VC community. It also means that our key leadership and board members have to stay connected to the VC communities even if we aren't headquartered in any of the hubs.

Jordan Allen

Allen contended that geographic location matters less when a company prioritizes sustained engagement with investors. He suggested that Stay Alfred's success would remain consistent whether headquartered in Portland, Seattle, or Silicon Valley, provided the company maintains these critical relationships.

I don't think it would make much of a difference if we were located in Portland, Seattle, or Silicon Valley thanks to the fact that we are focused on staying connected. If we weren't, it would be a different story.

Jordan Allen

Allen predicted that rising costs in major metropolitan areas will drive increased entrepreneurial activity in secondary cities like Spokane. He highlighted the region's advantages: an educated workforce supported by local educational institutions, an attractive living environment, and low barriers to entry for founders seeking to launch ventures.

As big cities become too cost prohibitive for entrepreneurs to afford to take a chance and start a business, there will be more and more innovation coming out of cities like Spokane. We have an educated workforce thanks to the surrounding education system, an environment people want to live in, and the low cost to entry entrepreneurs need.

Jordan Allen