Revenue Management for the New Era of Enterprise: Our Investment in BillingPlatform
The subscription economy has emerged as a dominant force in both the consumer and corporate landscape. In traditional subscription industries, such as media, financial services, and software-as-a-service (SaaS), companies are maturing and evolving their business models to be more flexible in order to enhance customer satisfaction, thus driving increased complexity. Subscription models are also expanding into non-traditional use cases in transportation/automotive, internet-of-things (IoT), field services and many other industries that historically haven’t generated revenue on a recurring basis.
In B2B and B2C use cases alike, generating predictable recurring revenue, enhancing customer relationships, and increasing operational efficiency are three of the clearest benefits of adopting subscription lines of business. The business stability these models provide, along with other benefits like customer acquisition and marketing efficiency, are driving subscription-based models, including those with usage, volume, and hybrid components to challenge traditional business models. As the adoption of these models continues to proliferate it also presents its own set of challenges, particularly for large enterprises.
Revenue management and billing for complex subscription business models are two the most significant challenges enterprises face when introducing, customizing and managing subscription-based lines of business. The consequences of missteps directly impact a company’s balance sheet and bottom line with an estimated 42% of organizations suffering from revenue leakage, which can account for up to 4% of the total revenue of a company according to research from MGI Research. Topping the list of factors to blame are manual processes and legacy systems. The only solution is a purpose-built, modern solution that’s designed to automate enterprise-grade revenue lifecycle processes from the ground up.
That’s why we’re excited to announce our $90 million growth investment in BillingPlatform, the leader in enterprise revenue management software.
As growth equity investors with a long track record of partnering with emerging leaders serving the Office of the CFO, we’ve been following BillingPlatform for the last three years. In that time the company has grown nearly 300% and garnered recognition as the category leader from Forrester Research, MGI Research and Ventana Research. These analysts and other industry experts consistently cite BillingPlatform’s innovative and highly-flexible technology approach as reasons why it’s a best-of-breed solution for the complex billing and revenue management needs of the enterprise.
Moreover, BillingPlatform’s customer base is a testament to the company’s superior technology and team. In recent years we’ve seen a number of significant strategic accounts, including J.P. Morgan, Amadeus, Cloudera, Carrier, DirecTV, Panera Bread and many others, place their trust in BillingPlatform to automate, optimize and operate their revenue cycles – one of the most mission critical aspects of their businesses. We spoke with a number BillingPlatform’s customers throughout the diligence process, and the product feedback we gathered was some of the most consistently positive that our team has experienced in working together. Triangulating that customer commentary with recognition from industry experts and feedback from market advisors made it clear to our deal team that BillingPlatform is best positioned to win the market.
BillingPlatform marks FTV’s latest investment serving the Office of the CFO, a core thematic focus area for us, and the company joins a growing group of high-growth business in the FTV portfolio, including Paddle, LogicSource, Inc. and Vindicia (acquired by Amdocs). Our investment and partnership will help BillingPlatform enhance its product capabilities, deepen its partnership strategy and expand into new verticals as the subscription economy continues to grow.
We’re grateful for the opportunity to partner with Dennis Wall, CEO; Leonid Solomonik, founder and CTO; Nathan Shinn, founder and CSO; Shane Desrochers, CRO; Brad Sawaya, CFO; Kurt Andersen, CMO; and the rest of the BillingPlatform team to power the company’s vision for modern monetization and ambitious growth forward.
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