OPINION: In late 2015, the owners of Avangate (private equity firm Francisco Partners) initiated a cleaning house initiative that brought in new management, laid off 15-20% of staff, closed the SF Bay Area headquarters, and stripped the client list of high-risk merchants. As a result of the reorganization, revenue initially declined but now appears stable, and the company is currently operating at break-even. Though no new high-profile customers were added during this 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 refocus its marketing on the US. Current customers should ask for roadmap updates to ensure that Avangate’s future plans are aligned with customer priorities.
USE CASE: Software and other digital goods and services companies seeking to scale-up by monetizing international opportunities of under $5 million.
COMPETITORS: cleverbridge, Digital River, FastSpring, PayPro Global, and best of breed Agile Monetization tool suppliers