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|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 CHRIS NOBLE
Whether you're stepping out to work or onto the track, Pacific Northwest shoe companies have you covered.
Monday, July 13, 2015
BY JACOB PALMER
Holding a Power Lunch at Veritable Quandary in downtown Portland.
Wednesday, August 19, 2015
BY AMY MILSHTEIN
Training, from the mundane to the sublime, bolsters companies and workers in an uncertain world.
Tuesday, July 28, 2015
BY JASON NORRIS
Uncertainty in Greece and China, along with potential interest rate hikes mean investors are looking at the market and nervously questioning where they should be invested.
Friday, July 10, 2015
BY GREGG MORRIS
Rita Hansen aims to scale natural gas vehicle innovation.
Thursday, August 06, 2015
Car and ride sharing services have taken urban areas by storm. Low-income and suburban communities are left at the curb.
Wednesday, August 19, 2015
BY CHRIS NOBLE
Oregon is home to an abundance of gritty warehouses reborn as trendy office spaces, as well as crafty hipsters turned entrepreneurs. Does the combination yield an equally bounteous office products sector? Not so much. Occupying the limited desk jockey space are Field Notes, a spinoff of Portland’s Draplin Design Company, and Schuttenworks, known for whittling Apple device stands. For a full complement of keyboard trays, docking stations and mouse pads, check out the GroveMade line, guaranteed to boost the cachet of even the lowliest cubicle drone.
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Transforming the culture of Oregon’s educational leadership.
The Board dismissed a petition related to efforts to unionize the Northwestern University football team.
Every once in a while we receive a letter in the (fictional) mailbag that is tough to describe and quite compelling. This week, Isabel, the new HR manager at LabCo (and someone who is new to HR), wants to know whether she may fire the owner’s son for having an Oregon medical marijuana card. In passing, Isabel also makes a number of alarming admissions about her motivation. Here is Isabel’s nerve-racking question and our response to it.
Oregon Sick Leave is here, and changes to the federal white-collar worker regulations are on the way. This workshop will prepare you for both. We invite you to participate in an interactive discussion on how to start planning now for the future impact on your operations and finances.
Presented by OEN + CENTRL + YESpdx.
This Roundtable will cover numerous issues under the employer "shared responsibility" rules of the Affordable Care Act, including how to track the "full-time" status of variable-hour employees, temporary or seasonal employees, and employees who experience a change in status or a break in service. Additionally, we will provide a brief overview of Code sections 6055 and 6056, which require most mid-sized and large employers to submit their first information reports to the IRS in early 2016 regarding the health insurance coverage being offered to employees. We invite you to participate in an interactive discussion on how to prepare for the future impact of the shared responsibility rules on your operations and finances.