Avalara Acquisition, Valuation, Funding & Investors
Avalara was acquired by Vista Equity Partners for $8.4B in August 2022, a 10.6x multiple on $789M of revenue.
Avalara acquisition price
$8.4B
Acquired by Vista Equity Partners · Aug 2022
Avalara revenue at acquisition
$789M
Last twelve months · Aug 2022
Avalara revenue multiple at acquisition
10.6x
EV/Revenue · Aug 2022
Cumulative funding Avalara raised
$795M
across 7 funding rounds
About Avalara
Avalara is a cloud-based tax compliance platform automating calculations for sales, use, VAT, GST, excise, communications, and lodging taxes. Headquartered in Seattle, Washington, and founded in 2004, it integrates with ERP systems like SAP, Oracle, and NetSuite, as well as ecommerce platforms including Shopify and Amazon, serving over 40,000 customers across 195 countries.
Founded
2004
HQ
Seattle, WAWebsite
Status
Acquired
Customer focus
B2B
Revenue model
Subscription
Revenue
$167M (Sep 2016)
Valuation
$925M (Sep 2016)
Avalara Acquisition
Avalara was acquired by Vista Equity Partners for $8.4B on 8 August 2022.
The acquisition price implies a 10.6x revenue multiple on $789M of revenue.
Before the acquisition Avalara had raised $795M across 7 funding rounds.
| Acquirer | Date | Type | Price | EV/Revenue |
|---|---|---|---|---|
| 8 Aug 2022 | PE buyout | $8.4B | 10.6x |
Avalara Valuation
Avalara is currently valued at $925M, based on its Series D in September 2016.
The $96M round was led by Warburg Pincus, with participation from Arthur Ventures, Battery Ventures, TCV, Sageview Capital and Pioneer Venture Partners.
Avalara valuation by funding round
| Date | Stage | Valuation | Revenue Multiple |
|---|---|---|---|
| Sep 2016 | Series D | $925M | 5.5x |
Avalara Revenue
Avalara's latest recorded revenue is $167M, as of its Series D in September 2016. At a $925M valuation, that implies a 5.5x revenue multiple.
Avalara revenue by funding round
| Date | Revenue * | Valuation | Revenue Multiple | Stage |
|---|---|---|---|---|
| Sep 2016 | $167M | $925M | 5.5x | Series D |
* Revenue (or ARR) figures are the values recorded alongside each funding round. Typically run-rate revenue at the time of the deal, or a reported LTM (last 12 months) revenue.
Avalara Funding History
Avalara has raised a total of $795M across 7 funding rounds.
Avalara's first fundraising round was a $400K pre-seed round in January 2013. The most recent completed round was a $500M undisclosed-stage round in November 2025.
Avalara funding rounds
| Date | Stage | Investors | Raised | Valuation | Deal Summary |
|---|---|---|---|---|---|
| Nov 2025 | Undisclosed stage | BlackRock (lead); Vista Equity Partners | $500M | - | Avalara, Inc., a leader in agentic tax and compliance automation, closed a $500 million equity investment on November 11, 2025, led by BlackRock's Private Financing Solutions, with Vista Equity Partners remaining the majority shareholder after their 2022 acquisition. All proceeds were used to purchase shares from existing shareholders, providing liquidity without altering Vista's controlling position. The investment underscores confidence in Avalara's evolution from cloud-based tax automation pioneer to a comprehensive provider embedding AI-powered solutions in customers' financial systems. Avalara's Agentic Tax and Compliance platform leverages enterprise LLMs, domain-specific SLMs, intelligent AI agents, and an expansive compliance content network, running on a multi-cloud infrastructure for scalability. It serves over 43,000 businesses and government entities in more than 75 countries, automating tax calculations, filings, certificate management, and other compliance tasks while maintaining human oversight through review checkpoints. CEO Scott McFarlane highlighted the company's mission to participate in every global transaction via a robust partner ecosystem. This follows Vista's $8.4 billion acquisition of Avalara in 2022 at $93.50 per share, taking it private. |
| Sep 2016 | Series D | Warburg Pincus (lead); Arthur Ventures; Battery Ventures; TCV; Sageview Capital; Pioneer Venture Partners | $96M | $925M | Avalara provides cloud-based software for sales tax and transactional tax compliance, automating tax calculations for retailers across jurisdictions. The company, founded in 2004, had grown to over 1,100 employees worldwide by 2016, with offices in the US, UK, India, Belgium, and Brazil. It pursued growth through acquisitions, having bought 17 companies to expand tax content and expertise in various industries and municipalities. In September 2016, Avalara raised $96 million led by Warburg Pincus, with participation from Sageview Capital, Technology Crossover Ventures (TCV), Battery Ventures, Arthur Ventures, and others. The round included $50 million for growth and acquisitions and $46 million to buy out early investors, bringing total funding since inception to over $300 million. The round valued Avalara at $925 million post-money. For 2016, the year of the round, revenue reached $167.4 million, up from $123.2 million in 2015, reflecting strong growth driven by customer acquisition across small online sellers to large global firms. Avalara competed with CCH, Sovos, Vertex, and Onesource Indirect Tax, positioning itself as the easiest to use and implement. The company continued scaling, eventually going public in 2018 at a $1.4 billion valuation, with shares rising to a $3.3 billion market cap shortly after. |
| Jan 2015 | Series D | TCV (lead); Warburg Pincus (lead) | $42M | - | Avalara is a provider of cloud-based software for automating sales tax and transactional tax compliance, including taxability determination, rate identification, tax collection, return filing, remittance, record-keeping, and compliance document management. Founded in 2004 and headquartered in Bainbridge Island, Washington, the company processes millions of tax transactions daily, files hundreds of thousands of returns annually, and manages millions of exemption certificates. By early 2015, Avalara employed over 800 people across U.S. offices, London, and India, with hundreds of pre-built connectors to accounting, ERP, ecommerce, and other business applications, tracking rates in 12,000 jurisdictions across over 150 countries. On January 20, 2015, Avalara announced a $42 million Series D-1 preferred stock investment led by Technology Crossover Ventures (TCV), with participation from an affiliate of Warburg Pincus and other shareholders. The company retained over $6 million in net new growth capital after using the remainder to repurchase shares from existing shareholders. This followed a $100 million round in November 2014 led by Warburg Pincus, bringing total capital raised since inception to over $200 million. Investors at the time included Sageview Capital, Battery Ventures, Arthur Ventures, and others. In fiscal year 2015, coinciding with the round date, Avalara generated $123.2 million in revenue, with subscription and returns revenue comprising 92% of the total. The company reported net losses of $77.8 million that year, driven by growth investments. Subsequent years showed revenue growth to $167.4 million in 2016 and $213.2 million in 2017, with 92-94% recurring revenue and over 95% from North America. Avalara's market addresses the complexity of transaction taxes across jurisdictions, enabling businesses to automate compliance and focus on core operations. By 2018 IPO filing, it had demonstrated consistent growth, averaging 29% YoY ARR growth over five quarters to $231.5 million implied ARR in Q1'18, with subscription gross margins around 75%. |
| Nov 2014 | Undisclosed stage | Warburg Pincus (lead); Employee Stock Option Fund | $100M | - | Avalara is a cloud-based software provider specializing in sales tax and transactional tax compliance automation. Founded in 2004 and headquartered on Bainbridge Island, Washington, the company serves thousands of small and medium-sized business customers including organizations such as Crocs, WatchGuard Technologies, and ANC Sports. In November 2014, Avalara announced a $100 million Series D-1 financing round led by Warburg Pincus, with participation from Technology Crossover Ventures and other investors. This round followed a $30 million investment in February 2014 from Battery Ventures and Sageview Capital, bringing total capital raised to over $200 million since the company's founding. At the time of the Series D-1 round, Avalara employed close to 800 people with offices on Bainbridge Island, across the United States, and internationally in London and Pune, India. The company indicated that proceeds from the round would fund growth initiatives including international expansion and strategic acquisitions to extend its tax content, product and service offerings, and geographic reach. As a result of the investment, Justin Sadrian of Warburg Pincus joined the company's board of directors. The company was ultimately acquired via IPO on the New York Stock Exchange in 2019, with Warburg Pincus exiting through public market sales of shares. |
| May 2014 | Undisclosed stage | Battery Ventures; TCV | $26M | - | Avalara, a tax compliance software company founded in 2004, provides cloud-based solutions that automate tax calculations, returns filing, and compliance for businesses by integrating with financial, POS, billing, and e-commerce systems. The company serves thousands of customers primarily in North America and has made acquisitions like VATlive to expand capabilities. In February 2014, Avalara raised $30 million in a funding round led by existing investors Battery Ventures and Sageview Capital, with participation from new investor Arthur Ventures and a total of 11 investors; this brought total funding to over $100 million since inception. Doug Burgum from Arthur Ventures joined the board as part of the transaction. Later rounds included a $96 million raise in September 2016 from Sageview, Battery, and Warburg Pincus at a $925 million pre-money valuation, contributing to cumulative funding exceeding $340-394 million by IPO from investors like TCV, Pioneer Venture Partners, and others. Avalara went public in 2018 with shares priced at $24, raising $180 million, and was later acquired by Vista Equity Partners in 2022 for $8.4 billion at $93.50 per share. |
| Feb 2014 | Series C | Battery Ventures (lead); Sageview Capital (lead); Arthur Ventures | $30M | - | - |
| Jan 2013 | Pre-seed | - | $400K | - | - |
Who has invested in Avalara?
9 investors have backed Avalara across its funding rounds, including Battery Ventures, Warburg Pincus, TCV, Arthur Ventures, Sageview Capital and BlackRock.
Lead investors include BlackRock, Warburg Pincus, TCV, Battery Ventures and Sageview Capital.
Avalara Investors
| Investor | HQ | Rounds | Role | First check |
|---|---|---|---|---|
| Boston, MA | 3 | Lead | Feb 2014 | |
| San Francisco, CA | 3 | Lead | May 2014 | |
| New York City, NY | 3 | Lead | Nov 2014 | |
| Minneapolis, MN | 2 | Participant | Feb 2014 | |
| San Francisco, CA | 2 | Lead | Feb 2014 | |
| Austin, TX | 1 | Participant | Nov 2025 | |
| United States | 1 | Lead | Nov 2025 | |
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Benchmark 350K+ Funding Rounds and Disclosed VC Valuation Multiples
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Start Free TrialAcquisitions by Avalara
Avalara has acquired 18 companies to date.
Last acquisition by Avalara was on March 1st 2026. Avalara acquired Versori for undisclosed valuation.
Latest Acquisitions by Avalara
![](data:image/svg+xml,<svg xmlns="http://www.w3.org/2000/svg" width="20" height="20" viewBox="0 0 20 20"><rect fill="%23e5e7eb" width="20" height="20" rx="4"/></svg>){kind=small} 3CE Technologies | |||||
| Description | Versori is a UK technology group that builds high-availability software for enterprise operations. Headquartered in London, the company maintains platforms for mission-critical functions in finance and logistics. Its products deliver 99.99 percent uptime through redundant architectures and real-time failover. Versori serves clients requiring robust infrastructure for transaction processing and supply chain management. | Hopscotch is a San Francisco-based business payments platform enabling fee-free invoicing and bill payments for small merchants. Its Hopscotch Flow service advances invoice payments using transaction data analytics, generating primary revenue. Acquired by Avalara in August 2024, the platform processes millions in monthly volume across U.S. retailers, integrating with QuickBooks and Stripe for seamless cash flow management. | Paper Crane is a San Francisco-headquartered startup developing AI platforms for geospatial analytics. Its tools process satellite imagery and location data to deliver insights on urban planning, agriculture, and disaster response without requiring coding expertise. The platform integrates with datasets from Landsat and Sentinel satellites, enabling users to generate maps, detect changes, and forecast trends via natural language queries. Backed by Y Combinator, Paper Crane serves enterprises in real estate and environmental monitoring through papercrane.io. | 3CE Technologies is a provider of commodity classification services, ERP integrations, and IT solutions for international trade. Based in Mumbai, India, it assists importers, exporters, and government agencies with HS code determinations, customs compliance, and SAP implementations. | |
| HQ Country |  | | |  | |
| HQ City | Manchester | New York City, NY | Boston, MA | - | |
| Deal Date | 1 Mar 2026 | 10 Sep 2024 | 22 Aug 2022 | 3 Nov 2021 | |
| Valuation | undisclosed | undisclosed | undisclosed | $11M | |
| EV/Revenue | |||||
| EV/EBITDA | |||||
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Avalara Competitors
Avalara competitors include listed companies like Morningstar, Beijing Compass Technology, Sinar Mas Multiartha and FactSet, and private ones like OneConnect and Mambu.
| Company | HQ | Status | Revenue | EBITDA | Valuation | Revenue Multiple |
|---|---|---|---|---|---|---|
| United States | Publicly listed | $2.4B | $718M | $7.6B | 3.5x | |
 Shanghai | Private | - | - | $7.4B | - | |
| China | Publicly listed | $320M | $46M | $7.3B | 13.7x | |
 Indonesia | Publicly listed | $2B | $281M | $7.2B | - | |
| United States | Publicly listed | $2.3B | $959M | $9.9B | 4.5x | |
 Amsterdam | Private | - | - | $5.5B | - |
Avalara Public Comps
Avalara is no longer listed, but its public comps include Morningstar, Beijing Compass Technology, Sinar Mas Multiartha, FactSet, Allfunds, Oracle Financial Services, Hundsun, Temenos, Topicus and ACI Worldwide.
| Last FY | EV/Revenue | EV/EBITDA | ||||||
|---|---|---|---|---|---|---|---|---|
| Revenue | EBITDA | Last FY | LTM | 2027E | Last FY | LTM | 2027E | |
| $2.4B | $718M | 3.7x | 3.5x | 12.5x | 11.3x | |||
| $320M | $46M | 16.8x | 13.7x | 116.3x | 101.7x | |||
| $2B | $281M | 5.0x | - | 36.0x | - | |||
| $2.3B | $959M | 4.8x | 4.5x | 11.7x | 11.9x | |||
| $749M | $295M | 8.4x | 8.1x | 21.2x | 12.3x | |||
| $800M | $365M | 12.5x | 11.1x | 27.4x | 22.5x | |||
| $862M | $221M | 6.3x | 6.3x | 24.5x | 32.2x | |||
| $1.1B | $466M | 5.7x | 5.4x | 13.3x | 13.7x | |||
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Common questions about Avalara
| When was Avalara founded? | Avalara was founded in 2004. |
| Where is Avalara headquartered? | Avalara is headquartered in Seattle, WA, United States. |
| Is Avalara publicly listed? | No, Avalara was acquired by Vista Equity Partners in August 2022. |
| Who acquired Avalara? | Avalara was acquired by Vista Equity Partners in August 2022. |
| How much was Avalara acquired for? | Avalara was acquired for $8.4B in August 2022, a 10.6x revenue multiple. |
| What is Avalara's valuation? | Avalara was last valued at $925M in its Series D in September 2016. |
| How much funding has Avalara raised? | Avalara has raised $795M across 7 funding rounds. |
| What was Avalara's last funding round? | Avalara's last funding round was a $500M undisclosed-stage round in November 2025, led by BlackRock. |
| Who are Avalara's investors? | Avalara's investors include Battery Ventures, TCV, Warburg Pincus, Arthur Ventures, Sageview Capital, Vista Equity Partners, BlackRock, Employee Stock Option Fund and Pioneer Venture Partners. |
| What is Avalara's revenue? | Avalara's latest recorded revenue is $167M (September 2016). |
| What is Avalara's revenue multiple? | Avalara's latest valuation implies a 5.5x revenue multiple ($925M valuation on $167M of revenue). |
| Which companies are comparable to Avalara? | Companies comparable to Avalara include Morningstar, OneConnect, Beijing Compass Technology, Sinar Mas Multiartha, FactSet and Mambu. |
| How many companies has Avalara acquired? | Avalara has acquired 18 companies, including Versori, Hopscotch, Paper Crane, 3CE Technologies and CrowdReason. |
| What was the largest acquisition by Avalara? | The $377M acquisition of TTR (Transaction Tax Resources) in October 2020 is the largest acquisition Avalara has made to date. |
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