Scott McFarlane

Avalara, the fast-growing Bainbridge Island company that helps online merchants manage sales tax collection, has raised an additional $7 million in venture capital financing. Sageview Capital provided the funding, which is being used to cash out early investors in the company, said CEO Scott McFarlane.

The deal follows a $14 million round that Avalara closed in April from Sageview Capital, Benaroya Capital and others.

As I previously noted, Avalara is a bit of a hidden success story in the Seattle area. (Perhaps because sales tax collection software isn’t the sexiest of businesses, or maybe because of its location on Bainbridge Island).

The 220-person company — which is growing at about 60 percent and opened a new downtown Seattle office earlier this year — is on track to top $30 million in revenue this year. The company was founded in 2004 by Rory Rawlings, Jared Vogt and McFarlane.

Like what you're reading? Subscribe to GeekWire's free newsletters to catch every headline

Comments

  • Thomas R.

    I like this a lot, a startup just doing their thing and making money. Something in my pants just went from 6 o’clock to 12 o’clock. 

  • Thomas R.

    I like this a lot, a startup just doing their thing and making money. Something in my pants just went from 6 o’clock to 12 o’clock. 

  • Matt

    Raised 21 million in hopes of selling 30 million?  What happens next year when they don’t raise any money.  Seems like the internet bubble all over again.

    • WARRENJD

      $30 milllion in revenue in 2011, $60 million in revenue in 2012, $90 million in revenue in 2013 and $110 million in 2014… Matt, please do the math (and at “10x” valuation, that aint bad  ;-)

      Plus, Avalara has a recurring revenue model…. even better

  • http://www.juice-marketing.com Mark Badran

    Nice work guys, congrats.  Keep up the good work!

Job Listings on GeekWork

Find more jobs on GeekWork. Employers, post a job here.