Hasan Askari is still bullish on Portland.
The managing partner at private equity firm K1 Investment Management said his team is actively looking at potential deals in the region. This, after one of its portfolio companies, legal software maker Zapproved, sold in January to Beaverton-based Exterro.
"I’m still (in Portland) quite a bit. We are still active and we still want to invest in the ecosystem," he said. "We still think Portland has some great talent."
The Los Angeles-based investor has been active in the Portland region for years. It has been a longtime investor in digital archiving company Smarsh, and it first invested in Zapproved in 2015. In 2018 it backed Beaverton software maker RFPIO.
K1 remains an investor in both RFPIO and Smarsh, said Askari. It also recently added a Portland ESG-related software maker to its portfolio.
K1 invests in business software companies that grow to be category leaders in their space.
“It’s cool for Portland to say we built the industry-leading, No. 1 player in their respective categories. And not just regionally but on a massive global scale with Fortune 50 and 100 customers,” he said of the local investments.
Since first coming to town, Askari has seen the region become a more attractive place for investors. However, K1 has the benefit of a strong group of founders who can speak about the investor's commitment to the Pacific Northwest, he added.
As the firm has grown it has stayed true to its initial strategy to back founder-led startups as the first institutional money in, he said. Companies have revenue and customers and typically aren’t looking for money.
The macroeconomic conditions today are similar to those following the financial crisis and the Great Recession, he said.
Askari’s advice to founders raising money in this environment is to treat money as a commodity.
"If you are going to raise money or work with a partner, make sure you work with someone that is doing something that will help you build your business, not just give you cash," he said. Look for people who can help navigate uncertainty.
"What we bring to the table is lots of resources but to (relatively) smaller businesses," he said. The firm gives access to the kind of support multibillion dollar companies have.
Part of these resources is hiring help. The firm has companies across its portfolio that are hiring. Locally, this includes roles at RFPIO that span customer success, marketing, professional services and sales.
