|| Print ||
|Articles - August 2010|
|Wednesday, July 21, 2010|
Page 4 of 5
One of the reasons Eric Doebele likes to keep his investments small is because he believes it is much cheaper to start new technology businesses than it used to be. Tech expenses that used to run millions of dollars now cost several thousand dollars per month, and innovators can test new ideas much more efficiently than in the past. “You can get the proof of concept at a much lower cost, and the feedback comes much faster,” he says.
Doebele’s deep experience in the high-growth technology sector is as valuable as his cash to the local startups he is supporting. In addition to investing in local companies, he is mentoring the founders of companies such as the online rent payment business Paydici and the vacation home rental business Second Porch. He meets with the leaders of these companies and others regularly, sharing his experience in starting and growing ReliableRemodelers.com and selling it for maximum reward.
He is not the only entrepreneur following this path. If Doebele did well with ReliableRemodeler.com, Nitin Khanna did amazingly well with Saber Consulting. The 39-year-old Khanna became an instant multimillionaire when Saber was acquired by Ross Perot’s EDS for $420 million in November 2007.
Khanna grew up in a family that controlled the supply of coal and wood in northern India. The son of a military man, he moved constantly during his youth in India and continued that restlessness into adulthood, attending four different universities in the U.S. and growing quickly bored with his job at Oracle, leaving in 1998 to start Saber with his brother, Karan.
“Our model was rapid development and knowledge transfer. We thought the biggest companies weren’t doing these things well at all. To them rapid was three years. For us it was six months.”
Success came quickly for Khanna’s Salem-based business, which specialized in technology for election systems and unemployment benefits. “Our first-year revenue was 200 grand. Second year we did 800. Third year we did two-and-a-half million. Fourth year we did six-and-a-half million.” (Khanna is not reading from notes as he reels off these numbers and others. He knows them by heart.)
Growth became even more astronomical after Khanna and his brother tapped into private equity to buy a company three times as large as Saber in 2006. By the time they sold Saber, Khanna says they had 1,500 employees and were winning 100% of the projects for which they were bidding.
With his swashbuckling demeanor and unapologetic devotion to material wealth, Khanna would seem to hold more in common with the entrepreneurs of Orange County or Silicon Valley than Portland. But his children are in Portland, and he has decided to stay. He recently purchased the penthouse suite at the John Ross condominium in Portland’s South Waterfront neighborhood and like Doebele he has invested in five local startups. In addition, even though his days are full as he and his brother launch a global mergers and acquisitions firm called MergerTech, he dedicates a day and a half per week to mentoring local entrepreneurs, giving nine speeches over the past two months with titles such as “How to Double Your Revenue Every Year” and “Acquiring the Acquisition Mindset.”
Khanna also joined the Portland peer mentoring group Starve Ups last December, although he is far from starving.
Local entrepreneurs are thrilled to have Khanna in town. “Nitin’s support of start-ups has been second to none,” says Portland entrepreneur John Friess. “If he weren’t in town, a lot of companies would be in worse shape than they are. He is changing the entire city.”
Khanna says he has been impressed with the mentoring and support groups for local entrepreneurs such as Starve Ups, the Oregon Angel Fund, the Oregon Entrepreneurs Network and the Software Association of Oregon. But he is highly critical of the state’s shortcomings in seeding companies with potential to grow powerfully. “The angel scene in Oregon is unbelievably onerous on the entrepreneur,” he says. “The amount of work required to get as little as $25,000 to $100,000 is abominable. The things I would really like to see in Portland are an increase in angel money and an increase in the velocity of that money.”
He also wants to convince the founders of local tech companies to aim higher as they look to sell their businesses. Much higher.
Thursday, November 20, 2014
BY JASON NORRIS | OB CONTRIBUTOR
Each month for Oregon Business, we assess factors that are shaping current capital market activity—and what they mean to investors. Here we take a look at two major developments regarding possible rollbacks of the Affordable Care Act (ACA).
Thursday, October 02, 2014
More than 5,500 employees from 180 organizations throughout the state participated in the 100 Best Nonprofits to Work for in Oregon project.
Wednesday, October 22, 2014
BY JOE ROJAS-BURKE & KIM MOORE
Oregon Business reports on the visa squeeze, the skills gap and foreign-born residents who are revitalizing rural Oregon.
Thursday, November 13, 2014
BY RYAN CARSON | OP-ED CONTRIBUTOR
How do we skill up our future technology workforce in a smart way to take advantage of these high-paying jobs? The answer shouldn’t focus only on helping people get a bachelor’s degree.
Friday, November 14, 2014
BY JESSICA RIDGWAY
Oregon entrepreneurs reveal their favorite caffeine hangouts.
Wednesday, October 22, 2014
BY KIM MOORE
A conversation with Majd El-Azma, president and CEO of LifeWise Health Plan of Oregon, followed by the Healthcare Powerlist.
Wednesday, October 22, 2014
BY AMY MILSHTEIN
Everyone knows college is expensive, but a look at the numbers brings that into sharp — and painful — focus.
|A Complex Portrait: Immigration, Jobs and the Economy|
|Woman of Steel|
|Kill the Meeting|
|Ferguson bakery saved by crowdfunding|
|Obamacare yields more than 1M applicants in first week of open enrollment|
|Price of already-built homes in Seattle area drops|
|Apple hits record-high value|
|Fed's ability to regulate questioned|
|Budweiser to move away from Clydesdales|
|Mergers lucrative for departing CEOs, but not necessarily shareholders|
Is your business ready to join us in the call for action? This opening panel includes Oregon businesses who will discuss why they signed the Oregon Climate Declaration, the investments they are making to reduce carbon emissions, and how their actions are affecting their companies.
Get ready for two days of special events produced with the EPA, Portland Timbers and ISOS before and after the GoGreen Conference on October 16.
Plenty of employers seem “dazed and confused” after the recent vote to legalize marijuana. In light of Measure 91 passing, what are some issues for private-sector Oregon employers to consider?
Rotary’s Oregon Ethics in Business aims to raise consciousness about business ethics by honoring exceptional companies.
Barran Liebman’s annual employment law seminar is an industry classic.
Is my drug-free workplace policy up in smoke?
More than 400 "Change Makers" will gather to invest in a socially sustainable community.