Total amount raised
$341 Millions
Latest funding date
1/1/2023
Location
Avalara has successfully raised significant funding over multiple rounds, culminating in a valuation of $8.4 billion through its acquisition by Vista Equity Partners. The company offers cloud-based tax compliance software, providing automated solutions to streamline tax processes for businesses of all sizes.
Keep reading to delve into the details of Avalara's funding journey and discover the key investors who have backed this innovative platform.
What Is Avalara?
Avalara, founded in 2004, is headquartered in Seattle, Washington. The company was established by Jared Vogt, Rory Rawlings, and Scott McFarlane.
Specializing in tax compliance software, Avalara offers automated solutions to help businesses manage various transaction taxes, including sales and use, VAT, and GST. Their platform integrates seamlessly with leading ERP, accounting, and e-commerce systems.
With a workforce of 1001-5000 employees, Avalara continues to innovate in the tax compliance space, providing essential tools for businesses of all sizes to ensure accurate and efficient tax management.
How Much Funding Has Avalara Raised?
- Private Equity Round
- Amount Raised: Not specified
- Date: January 1, 2023
- Lead Investors: Susquehanna Growth Equity
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To secure additional capital for strategic growth initiatives.
- Post-IPO Debt
- Amount Raised: $38.6K
- Date: October 19, 2022
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To manage operational expenses and debt obligations.
- Series D
- Amount Raised: $96M
- Date: September 22, 2016
- Lead Investors: Warburg Pincus
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To buy out existing shareholders and fund growth and acquisitions.
- Series D
- Amount Raised: $42.3M
- Date: January 20, 2015
- Lead Investors: TCV, Warburg Pincus
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand market reach and enhance product offerings.
- Private Equity Round
- Amount Raised: $100M
- Date: November 10, 2014
- Lead Investors: Warburg Pincus
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To accelerate growth and scale operations.
- Venture Round
- Amount Raised: $26.3M
- Date: May 13, 2014
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support product development and market expansion.
- Series C
- Amount Raised: $30M
- Date: February 13, 2014
- Lead Investors: Battery Ventures, Sageview Capital
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To enhance technological capabilities and expand the customer base.
- Venture Round
- Amount Raised: $425.4K
- Date: January 8, 2013
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To fund early-stage operational costs and product development.
- Venture Round
- Amount Raised: $20M
- Date: June 27, 2012
- Lead Investors: Battery Ventures
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To scale the business and enhance market presence.
- Series B
- Amount Raised: $21M
- Date: April 21, 2011
- Lead Investors: Sageview Capital
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand product offerings and increase market penetration.
Total Amount Raised: $336.6M
Current Valuation: $8.4B
Key Investors
- Susquehanna Growth Equity
- Details: Susquehanna Growth Equity is a private equity and venture capital firm based in Bala Cynwyd, Pennsylvania. They focus on growth-stage companies in the software, information services, internet, and financial technology sectors.
- Investment Focus Areas: Software, Information Services, Internet, Financial Technology
- Notable Investments: Credit Karma, Payoneer, Whitepages
- Warburg Pincus
- Details: Warburg Pincus is a global private equity firm headquartered in New York City. They have a long history of investing in growth companies across various sectors.
- Investment Focus Areas: Technology, Healthcare, Financial Services, Energy, Consumer
- Notable Investments: Airbnb, CrowdStrike, Grubhub
- TCV (Technology Crossover Ventures)
- Details: TCV is a private equity and venture capital firm based in Menlo Park, California. They specialize in growth-stage investments in technology companies.
- Investment Focus Areas: Software, Internet, Fintech, Healthcare IT
- Notable Investments: Netflix, Facebook, Spotify
- Battery Ventures
- Details: Battery Ventures is a global, technology-focused investment firm with offices in Boston, San Francisco, and Israel. They invest in companies at all stages, from seed to buyout.
- Investment Focus Areas: Software, Industrial Technology, Consumer, IT Infrastructure
- Notable Investments: Glassdoor, Nutanix, Sprinklr
- Sageview Capital
- Details: Sageview Capital is a private investment firm based in Greenwich, Connecticut. They focus on providing growth capital to small and mid-sized companies.
- Investment Focus Areas: Technology, Financial Services, Business Services
- Notable Investments: Elastic, EverBank, Reflexis Systems
What's Next for Avalara?
Avalara stands at the cusp of significant growth opportunities, driven by the increasing demand for automated tax compliance solutions. With $50 million earmarked for growth and acquisitions, the company is well-positioned to expand its market presence and enhance its product offerings. The involvement of high-profile investors like Warburg Pincus and Battery Ventures underscores the confidence in Avalara's potential for continued success.
Future fundraising opportunities appear promising, given the strong interest from institutional investors. However, Avalara may face challenges such as intense competition and the need for continuous innovation to stay ahead in the rapidly evolving tax compliance industry. Navigating these hurdles will be crucial for sustaining its growth trajectory.
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