This is the second-largest funding round announced in the tax accounting market in the last year. The largest was the $150 million secured last year by Xero. The difference is Avalara is in a lot better shape to move to the next level. The announcement also signals that it is highly unlikely for Avalara to go public until 2015. You don't raise funds like this and then head out on an IPO road show. Besides, an interview with Intacct CEO Robert Reid this week produced his view that earlier this year valuations for technology companies went south. It probably will take some time to recover.
AVALARA SNAGS $100 MILLION Featured
Sales-tax services provider Avalara said this week it has raised $100 million in financing from an affiliate of Warburg Pincus. The Bainbridge, Island.-Wash.-based software company says its plans include international expansion and strategic acquisitions. "This investment by Warburg Pincus will allow us to put more dollars to work in our growth initiatives," said Avalara founder and CEO Scott McFarlane. Avalara said the new round brings the total it has raised to more than $200 million since 2004.
