Investment Thesis

There are over 15,000 Marketing technology companies and over 49,000 Marketing agencies in the US. Most of these companies are small (<5 people), regional and specialized. Less than 1% (about 500) of these companies employ more than 20 people and can be considered large.

Their biggest problems are a) growing their customer base, b) hiring qualified people to meet demand and c) offering new marketing specialties which are required by customers without adding new specialized resources. Most of these companies have a niche (email marketing or SEO, YouTube marketing, etc.) and try to build expertise in that niche and slowly expand outside that niche, to meet customer demand - which constantly shifts.

Vangal is a private equity firm focused on digital marketing. Vangal buys smaller agencies and technology companies to a) optimize operations by using employees who can use AI in remote locations, b) increase customer spend by offering different services (end-to-end) and c) leverage generative AI technology to move more customers to in-house capabilities increasing margin.

Marketing Software as a Service Technology

Marketing Agencies

Marketplaces & Media

Agencies vary in size and type, ranging from small boutique firms to full-service agencies. Types include digital marketing agencies, advertising agencies, PR firms, social media agencies, and content marketing agencies. They offer services such as branding, SEO, PPC, content creation, and market research to help businesses reach their target audience.

Marketing SaaS (Software as a Service) companies offer cloud-based tools for marketing automation, CRM, analytics, social media management, and email marketing. These companies cater to diverse industries, providing scalable solutions for small businesses and complex, customizable platforms for large organizations.

Marketing media properties include digital media (social media, websites, email). They vary in size, from large influencers to niche blogs or websites. Each type serves different audience sizes and demographics, offering diverse. We acquire communities where marketers tend to gather by role or location.

Digital Marketing Solutions

Optimize operations, increase customer spend, and leverage generative AI technology for better results.

AI Remote Operations Optimization

Utilize AI in remote locations to optimize operations and enhance efficiency.

End-to-End Services Offering

Increase customer spend by offering a variety of services from start to finish.

Generative AI Technology Leveraging

Move customers to in-house capabilities using generative AI technology for increased margins.

Vangal's approach to acquisition has truly transformed our business. Their use of AI technology and end-to-end services have significantly increased our customer spend and margins.

Gina L

★★★★★