|| 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.
Monday, July 13, 2015
BY SAM BLACKMAN
Storyteller-in-chief with the CEO and co-founder of Elemental Technologies.
Monday, July 13, 2015
BY KIM MOORE
Revenues in Oregon's private, for profit sector maintained solid growth as the economy continued to rebound.
Wednesday, June 17, 2015
Friday, July 10, 2015
BY GREGG MORRIS
Rita Hansen aims to scale natural gas vehicle innovation.
Friday, July 10, 2015
BY DAN COOK
The Affordable Care Act has triggered a rush on health care plan redesign, a process fraught with hidden costs and consequences.
Wednesday, July 15, 2015
Former Governor John Kitzhaber's resignation in February prompted some soul searching in this state about ethical behavior in industry and government.
Friday, July 17, 2015
Photographer Jason Kaplan takes a look at Murray's Pharmacy in Heppner. The family owned business is run by John and Ann Murray, who were featured in our July/August cover story: 10 Innovators in Rural Health Care.
|10 Innovators in Rural Health|
|The Private 150: From Strength to Strength|
|Farm in a Box|
|Flattery with Numbers|
|Preserving the Legacy|
|Downtime with Debra Ringold|
|Washington to add 7 cents to gas tax|
|Wages, benefits grow at slowest pace in 33 years |
|Amazon earns $92M in profit|
|Under Armour bests Q2 earnings expectations|
|More than a hundred passengers forced to stay overnight at PDX|
|Immunization rates to be available to parents|
|CEO who pledged $70K minimum wage sued by brother|
One of the many reasons why businesses fail is due to the lack of attention to analytics. Sure, you can go on running your business, but mastering the science of analytics will translate into a business advantage.
Court experience helps legal firm anticipate potential problems for clients and prevent expensive litigation.
When Garmin AT needed to consolidate operations for its 550 employees, it scanned its entire corporate map for possible sites.
Professional and Continuing Education (PACE) and the College of Business at Oregon State University is offering “Business Analytics for Competitive Advantage”, a two-day intensive workshop.
A look back at the shifting sands of Portland’s growth and development.
Robert S. Wiggins has joined Lane Powell as a Shareholder in the Corporate/M&A Practice Group. Wiggins is a well-known lawyer, entrepreneur, and investor with more than 30 years of experience leading and advising established and emerging companies in the Pacific Northwest. Wiggins will focus his practice on offering outside general counsel services, including general corporate and board representation, business transactions and capital events.