The company today announced a $42 million investment round led by Technology Crossover Ventures (TCV), which had not previously invested. However, Avalara is only retaining $6 million in net new growth capital, as the remaining part of the round is being used to repurchase shares from existing shareholders who cashed out.
TCV is an established and well-known firm, having invested in companies like Facebook, Spotify, Splunk, and Netflix. The Silicon Valley group has also backed numerous Seattle-area organizations over the years, including RealNetworks, VacationSpot.com, Motricity, WhitePages, Zillow, Expedia, and more recently ExtraHop.
Avalara has raised more than $200 million since launching 11 years ago. Its $100 million round in November was led by investment powerhouse Warburg Pincus and marked one of the largest investments to date in a Seattle area tech company. Warburg Pincus — via an affiliate — also participated in this $42 million round led by TCV.
The company, headquartered in Bainbridge Island, Wash., now employs more than 800 people at its HQ in Bainbridge Island, Wash., in offices across the U.S., as well as abroad in London and India. Avalara also recently secured a new 36,000 square foot office space at 2nd and Spring in downtown Seattle.
Avalara CEO Scott McFarlane, Jared Vogt and Rory Rawlings founded Avalara in 2004 as an online sales tax software startup. Today, the company sells subscription software that automates compliance with all sorts of transactional taxes, including sales tax and value added tax. Avalara now tracks rates in 12,000 jurisdictions in over 150 countries.