Avalara, provider of cloud-based software for sales tax and transactional tax compliance, announced it has issued more than $42 million in series D-1 preferred stock to new investor Technology Crossover Ventures, growth equity provider for technology companies, and existing investors led by an affiliate of private equity firm Warburg Pincus.
Avalara will retain more than $6 million in net new growth capital after repurchasing certain shares from existing shareholders that it plans to invest in growth initiatives.
This investment follows the
“Like Warburg Pincus, TCV is a premier technology growth investor and has significant experience helping companies like Avalara successfully scale their businesses,” stated Scott McFarlane, founder and CEO of Avalara. “We look forward to leveraging their combined expertise to accelerate the growth of our Compliance Cloud platform.”
Silicon Valley-based TCV's current portfolio includes Facebook, Netflix and Spotify.
“We are extremely impressed with Avalara’s ability to deliver on its mission of helping businesses of all sizes to comply with sales tax and other transactional tax requirements through comprehensive, automated, cloud-based solutions that are easy to use,” stated TCV general partner Tim McAdam. “Avalara is an exceptional technology leader that is transforming a range of business processes, and we believe our investment will help accelerate the company’s momentum.”
“We are pleased to make this additional investment in Avalara to continue support of the company’s growth initiatives and its pursuit of new and advanced solutions for its customers,” stated Justin Sadrian, managing director at Warburg Pincus and member of the Avalara board of directors.
Warburg Pincus’ portion of the equity for this investment comes from an affiliate of Warburg Pincus Private Equity XI, L.P.
