Raghu Raghavan keeps Act-On local

| Print |  Email
Articles - January 2011
Thursday, December 16, 2010

 

0111_ATS04
Raghu Raghavvan plans to keep his company, Act-On, in Oregon. In 1998, he moved Responsys, a company he co-founded, to California with nearly disastrous results. "It was awful," he says. // PHOTO BY TERESA MEIER

Raghu Raghavan was building web apps before there were web apps, and selling software-as-a-service before there was SaaS. A native of Bangalore, India, who came to Oregon to join the then-tiny team at Mentor Graphics in 1983, Raghavan plans to build his new email marketing company, Act-On, from a dozen employees to more than 30 by the end of 2011. And he plans to do so in Oregon, not Silicon Valley.

His desire to keep his business local flows from experience. Raghavan co-founded Responsys in 1998 and moved that company from Oregon to California partly to appease investors who had poured “a mountain of money” into the company – north of $60 million. Then came the dot-com crash, followed by what Raghavan calls “intense investor meddling.” The company barely survived the bloodbath. “They decimated the Oregon team and left all the underperforming guys in Silicon Valley,” says Raghavan. “It was awful.”

Raghavan and his team ended up saving Responsys from collapse and turning the company around (it recently filed for an initial public offering that could prove quite profitable for Raghavan), but not before vowing never again. So in the fall of 2009, when a major California firm offered $5 million to grow Act-On with the condition that he move the company to the valley, Raghavan declined. “It’s our idea,” he says. “We built it. And it’s going to succeed where we are.”

Raghavan decided to grow the company on his own, hiring salespeople to prove customers were interested in Act-On’s all-in-one marketing package. In November he landed $4 million from Voyager Capital and U.S. Venture Partners, along with a promise that the investment team was not interested in forced relocations.

Raghavan says Act-On sells its services to 160 customers, among them Siemens, Motorola and Roseburg Forest Products. He’s developed a sales team in Sacramento and a technical team in Bangalore, but the bulk of the resources are going into Oregon. The company is expected to grow out of its office space in Beaverton soon, and Raghavan is considering moving to Portland’s central eastside, a lively neighborhood for innovative young companies.

Raghavan says he likes what he sees in Oregon’s tech sector, especially as technical advances continue to bring down the costs of launching startups. “It will never be like Silicon Valley here,” he says. “But we don’t need that. As long as we have a steady number of new companies doing well, that’s right for Portland.”

BEN JACKLET
 

More Articles

Leading with the right brain

News
Tuesday, December 09, 2014
120914-manderson-thumbBY LINDA BAKER

On the eve of the Portland Ad Federation's Rosey Awards, Matt Anderson, CEO of Struck, talks about the transition from creative director to CEO, the Portland talent pool and whether data is the new black in the creative services sector.


Read more...

Legislative Preview: A Shifting Balance

January-Powerbook 2015
Thursday, December 11, 2014
BY APRIL STREETER

Democratic gains pave the way for a revival of environment and labor bills as revenue reform languishes.


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...

Reimagining education to solve Oregon's student debt and underemployment problems

News
Thursday, November 13, 2014
carsonstudentdept-thumbBY 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.


Read more...

Water World

November/December 2014
Wednesday, October 22, 2014
BY KIM MOORE

Fred Ziari aims to feed the global population.


Read more...

Two Sides of the Coin

Contributed Blogs
Wednesday, October 22, 2014
22 twosidesBY JASON NORRIS

Historically, when the leaves fall, so do the markets. This year, earnings, Europe, energy and Ebola have in common? Beyond alliteration, they are four factors that the investors are pointing to for this year’s seasonal volatility.


Read more...

Fly Zone

November/December 2014
Wednesday, October 22, 2014
BY JOE ROJAS-BURKE

The black soldier fly’s larvae are among the most ravenous and least picky eaters on earth.


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