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Deal Watch: VCs invest 15 million in Jive Software

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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


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