The reason why i say it is doomed is (i'm not sure it's this plan so i could be jumping the gun) because one of the plans that is being implemented we were interviewed by one of 'LPs' and the info about how the 'funding' works was very sketchy.
It pretty much boiled down to pick 4-6 companies and give them loans that can be called back at roughly anytime and are personally guaranteed.
When we (my partner and I) looking for money in portland and working on our start-up at the same time even giving BrainTree a few thousand bucks as guarantee was out of the question. The idea that any young, early start-up wants loans with personal guarantees makes no sense. If anything just get 5-6 credit cards and max them out to finance it. It's easier.
My feelings are that Portland has talent and what it needs is seed funding and mentoring. Something like an incubator... I believe that this imbalance is the "problem" with Portland.