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.

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!

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