Jun 27th 2012
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Battery Ventures, a multistage investment firm focused on technology and innovation worldwide, announced on June 27 that it has led a $20 million growth financing in Avalara, a leading provider of sales tax automation services in the Cloud.
Since its founding nearly a decade ago, Avalara has pioneered the service-based platform for tax automation and emerged as the dominant player in this large market by leading the automation effort for financial, ecommerce, POS, and mobility applications for businesses.
Today, Avalara's SaaS solution provides a complete set of transactional tax compliance services developed specifically to serve the needs of small and midsized businesses.
"Avalara exemplifies what we look for in companies as investors: a practical solution to a pressing problem," said Chelsea Stoner, partner, Battery Ventures. "The increasing complexity of sales and use tax regulation has amplified the need for Avalara's SaaS-based offering, as it's truly a pain point businesses can't afford to ignore. Avalara's technology and integration capabilities, along with their impressive customer base, have powered them into the leadership position in this billion-dollar market. We believe Avalara has massive potential, and we look forward to working with the team to achieve it."
With this funding, Stoner will join the Avalara board of directors.
"Avalara has grown significantly over the past few years, and we think the market for our SaaS solution will soon mirror that of payroll automation," said Avalara founder and CEO, Scott McFarlane. "While we were not actively looking for funding, we are confident Battery's investment will help Avalara quickly tap the huge opportunity we see ahead of us. Their impressive record and solid understanding of the SaaS business model make them the right partner to help build the next phase of our business and create a world-class company."
Avalara currently serves tens of thousands of registered users globally and calculates VAT and sales and use taxes on nearly one billion transactions annually. It also manages more than 1.5 million exemption certificates, files approximately 500,000 returns, and remits nearly $10 billion in sales and use tax collections per year.
The company was initially funded by angel investors, including the Benaroya Company and Pioneer Venture Partners, and it has received additional funding from Sageview Capital.