OPINION: In late 2015 the owners of Avangate, private equity firm Francisco Partners initiated a house cleaning exercise that brought in new management, laid off 15-20% of staff, closed the SF Bay Area HQ and cleansed the customer rolls of high-risk merchants. As a result of the reorganization revenue declined, but now appears stable and the company is operating at break-even. No new high profile customers were added during the recent period. Avangate now has a clean slate for taking the business forward. To get back to growth mode the company needs to embrace new business models, initiate a partnership strategy to enter new markets and generate leads. Moreover, Avangate needs to re-focus its marketing on the US. Current customers should ask for roadmap updates to ensure that Avangate’s future plans are aligned to customer priorities.
USE CASE: The best use case for Avangate today is within software and other digital goods and services companies seeking to scale-up by monetizing international opportunities of under $5 million.
Founded by a serial Romanian entrepreneur, Avangate helps software companies and e-book vendors reach international markets. The Avangate Merchant of Record platform provides all-in-one payments, commerce, billing, merchant services, and a large network of affiliates focused on digital goods and software. The company has become a US-centric business run by a US-based executive team. Company official headquarters is in Amsterdam, The Netherlands.
COMPETITORS: Cleverbridge, Digital River, PayPro Global, FastSpring and best of breed Agile Monetization tool suppliers
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