Avangate‘s story is both fascinating to analyze and something that startups in the region aspire to be. It’s a tech startup whose trajectory has been built with tremendous passion and keen business insights, coupled with sharp technical skills and a very competent team.
To better grasp the key elements in the company’s evolution, we interviewed Carmen Sebe, Chief Operating Officer at Avangate. Carmen is one of the people who has grown professionally along with Avangate’s evolution, having been part of GECAD since 1996 and having led multiple companies within the group. Carmen is part of the core team of Avangate, handling operational performance, business processes, risk management and the complex clients support system. She’s been heading Avangate as CEO since its early startup stage until the summer of 2011 and she also led the first investment round from 3TS Cisco Growth Fund in March 2011.
In this special material for the How to Web blog, Carmen talks about some important milestones, the challenges of scalability, legal aspects and management tactics used to keep a solid company culture. Enjoy!
1. How did Avangate evolve from a startup to a company? What were the main milestones?
Avangate started in 2006 as part of GECAD Group. Apart from product launches which have been so many along the years, I could mention as milestones the opening of the HQ in The Netherlands in 2006, our first office in the US in 2007, getting our first PCI DSS Level 1 certification in 2009, the first round of investment from 3TS Cisco Growth Fund in 2011, followed by the US executive team during that same year. Getting closer to today, we’ve had a lot of recognition from the market in terms of awards, analyst report mentions, etc. especially in the last two years, while our client base has currently reached 3,000+ worldwide. To give you more numbers, we’ve grown at 60-70% CAGR year on year and we’ll continue our accelerated growth and expansion with the investment from Francisco Partners, which brings us to our latest, major milestone.
2. What challenges did opening an HQ in Silicon Valley imply? What were the key lessons learned in this period?
Probably the most important drawback we had to overcome was the time zone difference between Romania and the Bay Area. There was also a difference in mindset, “the way we do things around here”, but while the time zone is still a hurdle, I believe the teams have now been brought to a common denominator and both parties have embraced the good habits from one another.
Lessons learned, quite a few a might say:
- Presentations are not everything, but they count for more than you think -> Whether you’re taking to a prospect, the press or you’re a startup looking for funding, make sure your presentation is neat and clear. While in Europe many people may be PowerPoint allergic, in the US it is a great visual aid and one that you can leave behind or email as a follow-up.
- Answer emails 
You have a task to deliver? Be sure to respond, acknowledge the task, give a completion estimate and deliver on time. You are late or you have no idea what’s being asked of you, be straightforward and spell it out. Honesty, spontaneity and proactivity are very much appreciated, even when you do not have an immediate solution.
- Conference Calls can happen at 6.00 a.m. or 10 p.m. Assume it. Working from time zones that are so far apart means making a few sacrifices on your personal schedule and way of doing things. If getting your job done means being in meetings early in the morning or late at night, well, that’s part of the job description.
3. What valuable lessons could other startups learn from your experience with product scalability and adapting to different cultures (the European, US and even Chinese markets)?
The most important lesson for startups wishing to expand on an international market is adapting to the local culture. This means though that you need those international clients first – understanding their needs and getting their feedback will assist you in building a competitive product or service.
If you want a concrete list of actions, for example for online and self-service, you need to look at localization, accepting local payment methods, etc., support in the local language. When it comes to higher value B2B, the sales processes may be completely different from one culture to the next. Expanding your business into other regions may entail also hiring a local sales team, organizing marketing activities according to the local business reality and practices, while offering solutions that enhance clients’ competitive advantage on the local as well as global market.
4. What legal obstacles can a company expect to encounter when entering a new market?
It depends. An online business is evaluated taking into consideration certain metrics, other terms being applied for a company selling physical goods, for instance.
It’s actually neither that complicated, nor as expensive as it may seem. Throughout this entire process, it is vital to work with experienced professionals in order to find adequate solutions. So I wouldn’t call them “obstacles”. Certain steps have to be made depending on the objectives you need to achieve and they may be either opening a new company or office, hiring people or selling on an international market.
5. What team management tactics do you employ to keep a consistent company culture across such different markets?
Avangate started with 7 people, it now numbers close to 150. We stayed true to our company beliefs from the get-go: teamwork, involvement, responsibility and mutual respect, plus excellence, creativity, innovation and customer delight.
We have however different approaches around the world in ‘the way we are doing things around here’. It is Important to share the same values though.
All Avangate offices, worldwide, are connected: daily calls and hundreds of thousands of emails. Moreover, we travel very often to the US and back, the American team is also very active in coming and visiting the Bucharest office, which still remains the largest in the company by number of employees.
Inside Avangate we have a very constructive policy of investing in our people, building strong team relations and being close to one-another. And, most importantly, we have fun while doing all of this. I guess without it we wouldn’t be where we are today.
6. How is working in the Romanian HQ different from working in the US HQ of Avangate?
Apart from the time zone difference, absolutely nothing [kidding]. Maybe the Californian whether, although nothing can beat the Romanian summers.
7. What changed since the first line of code was written and what is still the same?
A lot has changed, from the complexity of the platform, to client services, to internal procedures, how we market ourselves. What is the same – team cohesion and determination go forward.
8. What type of people does Avangate employ? What is specific about them that gives you a competitive edge?
Smart, innovative people with great integrity. We are focused on getting on board people who fit well within the current team.
9. How do you maintain an entrepreneurial approach to doing business in a growing company?
Luckily, we still have that in Avangate. I guess you have to do it if you want to grow and help your clients grow. And I’m referring here to being innovative, daring to try new things, always be on the lookout for interesting opportunities. Never give up sort of mentality!
We’re happy to have Avangate as partners for this year’s edition of How to Web and remember that there will be more to talk about on the subject during the event! Avangate’s commitment to supporting the local tech entrepreneurs is consolidated by their business mentorship program, the Avangate Biz Sessions, which will continue in December with a new workshop. In the meanwhile, Laurentiu Ghenciu, Avangate’s VP Sales for EMEA, will be a mentor in the Startup Spotlight program. See you there!