Accounting
Avalara Receives $50 Million Investment
Financial backers include Warburg Pincus, Sageview Capital, Technology Crossover Ventures (TCV), and other Shareholders.
Sep. 22, 2016
Avalara, Inc., a leading cloud provider of tax compliance automation for businesses of all sizes, announced it has raised approximately $50 million in net new growth capital. Existing shareholders invested a total of $96 million in Avalara, approximately $50 million of which will be used to fund growth and acquisitions. The remainder of the investment was used to repurchase shares from early investors.
“We are gratified by our investors’ continued support and commitment to Avalara,” said Scott McFarlane, founder and CEO of Avalara. “This financing offers some long-term individual shareholders a liquidity event, while enabling more recent institutional investors to increase their stake. In addition, these funds enable Avalara to continue to accelerate the global growth of our Compliance CloudTM platform.”
“Avalara is the ideal ‘platform’ company that Warburg Pincus seeks to invest in,” said Justin Sadrian, managing director at Warburg Pincus and member of the Avalara board of directors. “We are pleased to make this additional investment as Avalara looks to automate transactional tax compliance for customers throughout the world.”
“We have seen significant revenue growth at Avalara since we invested in the company,” said Ned Gilhuly, founding partner at Sageview Capital LP. “Going forward, we are as bullish as ever on the company’s growth prospects.”
“TCV is pleased to increase our investment in Avalara,” said Tim McAdam, general partner at TCV. “Avalara is an excellent example of a TCV portfolio company: it’s growing rapidly and has all of the key attributes in place to stand the test of time.”
Since 2004, Avalara has raised more than $300 million in capital, which includes this most recent financing.