Deal Watch: VCs invest 15 million in Jive Software

| Print |  Email
Monday, October 01, 2007

GNAWING ON A RED VINE, Dave Hersh, who recently negotiated a $15 million venture capital investment in his company, strides through Jive Software’s Portland offices with the confidence of someone who knows he’s got a good thing going. The cubes he passes are buzzing and even though it’s late in the day, Jive’s 70 or so employees are still working hard: The company’s break room — equipped with a beer tap, ample snacks, bean bag chairs and Xbox console — is empty.

Settling into a comfy leather chair, Hersh explains how the company didn’t actually need to take venture capital. “We’ve done this profitably since day one,” is how he puts it. But earlier this year Jive, which has made handy and popular software tools since its inception in 2001, launched its Clearspace product, and orders doubled in the space of three months. Clearspace unifies all the social software at play in a company — wikis, blogs, online discussions and so on — into one easy-to-manage portal.

“We had more leads than we knew what to do with,” says Hersh. He and the rest of the management team saw that they could either continue to grow at a gentle, profitable pace or they could raise some venture capital, staff up a sales and marketing team and go big. “We said: ‘Let’s sprint.’”

And sprint they did. In a matter of months they had a term sheet from Silicon Valley-based Sequoia Capital. Maybe you’ve heard of some of their investments: Apple, Yahoo!, Google and YouTube, just to name four.

(Did he talk to Oregon VCs? Only conversationally. Jive wanted the software industry expertise that Hersh says just isn’t available among local investors.)

The money puts Jive in a position not only to hire more employees to keep up with demand but also to make what Hersh calls “tuck-in acquisitions” — that is, if Jive comes across a company with a complementary technology, they might just buy them.

Coincident with its capital raising, Jive
is on track to bring in $15 million in revenue this year. Not bad for a company that gives away all its source code. Jive is living proof that a software company can do very well, thanks very much, selling software that
is, if you’re a big enough geek to know what to do with source code, technically available for free.

CHRISTINA WILLIAMS

REAL ESTATE TRANSACTIONS
ANNOUNCED BUYER/PARENT (HQ) REAL ESTATE (LOCATION) / SELLER (HQ) PRICE
30-Jul Horizon Realty Advisors (WA) Campus Commons Apts. (Eugene) $26.4m




30-Jul Chicago Deferred Exchange The Maples Apts. (Albany)/ Schouten and Fuller $1.845m




30-Jul Reham LLC industrial property (Tigard)/ 74th Avenue Industrial Park $3.75m




30-Jul Keggett & Platt (MO) industrial land (WA) $2.6m




31-Jul G & M Hollywood Hollywood Bowl (Portland)/ Frank Family Trust $6m




2-Aug ScanlanKemperBard (Portland) 20 medical office bldgs. (TX, FL, CA)/ GE Capital (NY) $76.25m




8-Aug M&J Wilkow Ltd. (IL) section of Wood Village Town Cnt (Portland)/ GM Realty Advisors $34.9m




10-Aug private investor (CA) Phoenix Corporate Center (AZ)/ ScanlanKemperBard (Portland) $62.5m




13-Aug Equastone (CA) AmberGlen Business Center (Hillsboro)/ ScanlanKemperBard (Portland) $68m




13-Aug Innovative Housing (Portland) Clifford Apartments Clifford Inv. (ID) $3.2m




15-Aug KBS Real Estate Investment Trust (CA) ADP Plaza (Portland)/ Antares-A $33.1m




22-Aug David and Adrianne Hill St. Clair Apartments (Portland)/ Elma M Niedermeyer trust $3.4m




23-Aug Urban Renaissance Group (WA) Sherlock Building (Portland) $9.75m




27-Aug BH Properties One-Two Tech. Center (Hillsboro)/ McMorgan & Company $9m




27-Aug LIT Industrial Limited Partnership (TX) commercial property (Portland)/ Schnitzer Investment $8.25m




27-Aug ScanlanKemperBard (Portland) three office buildings (CA) $61.5m




27-Aug FRE 407 (CA) Stonesthrow Apt. (Tualatin)/ Tualatin 8-B (AZ) $27.3m


MERGERS AND ACQUISITIONS
ANNOUNCED EXP. CLOSE BUYER/PARENT (HQ) SELLER (HQ) / PARENT PRICE (TERMS)
7-Aug Q3 ’07 US Resort Venture, LLC (West Linn) 49 Degrees North Mountain Resort (WA)/Peak Management Group, LLC $45m (equity stake)





7-Aug Q1 ’09 Western Sierra Mining Corp. (AZ) Pine Creek Mining (OR) $2.6m





9-Aug Q3 ’07 Vintage Wine Trust (CA) Farmer Road Vineyard (Polk County) $1.27m





10-Aug Q3 ’07 Sound Publishing (Poulsbo) five newspapers (WA)/Sun News ND





13-Aug Q3 ’07 executive leadership team (Portland) ID Branding (Portland) ND





15-Aug Q3 ’07 Seattle-Northwest Securities (WA) Regional Financial Advisors (Portland) ND





15-Aug Q3 ’07 Rescue Rooter (TN)/American Residential Srv. Jack Howk plumbing (Portland) ND





17-Aug Q3 ‘07 Prudential NW Prop. (Portland)/Prudential Real Estate Affl. Your Home Town Realty (Bend) ND





21-Aug Q3 ’07 TriQuint Semiconductor (Hillsboro) Peak Devices (CO) ND (cash)





22-Aug Q3 ’07 Aerosonic (FL) Op Technologies (Beaverton) ND (stock)


CAPITAL RAISING
ANNOUNCED COMPANY (HQ) / LEADERSHIP INVESTOR PRICE (TERMS)
14-Aug Integra Telecom (Portland)/ Dudley R. Slater, CEO Warburg Pincus (NY) $245m (private equity)




16-Aug Oregon State University (Corvallis)/ Edward Ray, president Patrick Stone, former CEO, Fidelity National Info. Solutions (CA) $1.7m (donation)




17-Aug Jive Software Inc. (Portland)/ Dave Hersh, CEO Sequoia Capital $15m (series A)




17-Aug Medical Teams Int. (Portland)/Global Relief Alliance/ Bas Vanderzalm, president Office for Foreign Disaster Assistance $1.4m (grant)




20-Aug U of O (Eugene)/ Dave Frohnmayer, president Phil Knight, founder, Nike (Beaverton) $100m (donation)




23-Aug PleuraFlow (Bend)/ Edward Boyle Jr., founder BVC Investor; Cleveland Clinic $1m (seed round)




28-Aug PSU (Portland)/ Daniel O. Bernstine, president Lorry Lokey, founder, Business Wire (CA) $1.5m (donation)

List researched by Mark Druskoff                   ND=Not disclosed


Have an opinion? E-mail This e-mail address is being protected from spambots. You need JavaScript enabled to view it

 

More Articles

Communications error

News
Friday, January 30, 2015
013015-zidellmattfrench-thumbBY LINDA BAKER | OB EDITOR

How did an errant email to the Zidell family end up fronting a story in the Oregonian this morning?


Read more...

Raising the Stakes

February 2015
Monday, January 26, 2015
BY LINDA BAKER

The 2014 Bend Venture Conference set a record for the most cash, investments and prizes awarded at an angel conference in the Pacific Northwest. Investments in the six winning companies exceeded $1 million. The 11th annual conference was hosted by Economic Development of Central Oregon.


Read more...

5 companies react to lower fuel prices

The Latest
Thursday, January 15, 2015
thumb-shutterstock 233787049BY JACOB PALMER | OB DIGITAL NEWS EDITOR

Consumers love the savings they get from low oil prices, but how has business been affected?


Read more...

Streetfight

News
Sunday, December 07, 2014
BY LINDA BAKER

On Friday, Uber switched on an app — and with one push of the button torpedoed Portland’s famed public process.


Read more...

Playoffs pay off for the Ducks

The Latest
Friday, January 02, 2015
oregon-ducks-logo-helmet-thumbBY JACOB PALMER | OB DIGITAL NEWS EDITOR

The University of Oregon football team looked unstoppable on the field Jan. 1 — and the university is reaping the benefits of the new postseason format.


Read more...

Editor's Letter: Power Play

January-Powerbook 2015
Thursday, December 11, 2014

There’s a fascinating article in the December issue of the Harvard Business Review about a profound power shift taking place in business and society. It’s a long read, but the gist revolves around the tension between “old power” and “new power” as a driver of transformation.


Read more...

Transportation Fairness Alliance holds demonstration in Pioneer Square

The Latest
Wednesday, January 14, 2015
IMG 3367BY JACOB PALMER | OB DIGITAL NEWS EDITOR

Portland's cab companies urged city hall for consideration as officials weigh new rules for Uber and other ridesharing companies.


Read more...
Oregon Business magazinetitle-sponsored-links-02
SPONSORED LINKS