Avalara Receives $42 Million in Capital from TCV and Warburg Pincus

Avalara, the maker of cloud-based solutions for sales tax and other transactional tax compliance, has issued more than $42 million in series D-1 preferred stock to new investor Technology Crossover Ventures (“TCV”), a provider of growth equity for premier technology companies, and existing investors led by an affiliate of Warburg Pincus. After paying to repurchase certain shares from existing shareholders, the company will retain over $6 million in net new growth capital.

“Like Warburg Pincus, TCV is a premier technology growth investor and has significant experience helping companies like Avalara successfully scale their businesses,” said Scott McFarlane, founder and CEO of Avalara. “We look forward to leveraging their combined expertise to accelerate the growth of our Compliance Cloud platform.”

“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,” said Tim McAdam, TCV general partner. “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.”