Entrata Raises $507M, Largest in UT History
The largest private investment round in Utah history was announced yesterday.
Entrata, a software company servicing the property management industry, raised $507 million in an unprecedented Series A. The funding will go toward research and development, international growth, and hiring new talent. This is the first institutional round of capital the housing technology platform has raised since its founding in 2003.
Funding was led by Silver Lake of Menlo Park, California, Qualtrics Founder Ryan Smith, and Vivint Smart Home Founder Todd Pedersen. The round also had participation from Domo Founder and CEO Josh James, Dragoneer, and other strategic investors.
Announced with the funding came news that Pederson and Silver Lake Managing Director, Kyle Paster, will join the board of directors, and founder and chairman Dave Bateman will step down as CEO, with Adam Edmunds taking the reins.
This investment will represent minority ownership, with Bateman retaining majority ownership.
“It’s incredibly rare to see a business or its leadership have the foresight to create a company that can grow so rapidly at scale across an entire industry,” said Silver Lake Co-CEO Egon Durban and Managing Director Kyle Paster. “Entrata’s platform directly meets the needs of property managers because of its flexibility and intuitive nature. This company is perfectly positioned to continue scaling quickly, and the potential within the industry is massive.”
“We've spent nearly two decades profitably bootstrapping Entrata into the clear technology, innovation and client service leader it is today, with a product that all of our competitors are chasing,” said Bateman. “With this strategic funding and Adam leading the team and company into its next phase, we are well positioned to aggressively expand our market share and continue to deliver the unrivaled experience our clients and their residents have come to expect from Entrata.”
Bateman posted on his personal Facebook timeline that he’s “elated to have Adam Edmunds take over as CEO, whose first contribution was raising the largest private round of tech funding in Utah history. He’s has [sic] one of the sharpest, most dynamic business minds I’ve encountered.” Edmunds is a seasoned Utah founder who has built and exited several software companies.
Headquartered in Lehi Utah, Entrata is a comprehensive technology platform involved in multi family housing developments. With the new funds, plans are in the works to double its research and development for the platform. According to the company, it currently processes more than $20 billion in rent payments annually through its platform, and serves more than 20,000 apartment communities across the United States. They plan to work extensively on international expansion in the near future. Entrata claims the title of fastest-growing software company in the real estate industry, with over $200 million in annual recurring revenue. They currently have more than 2,100 employees and plan to add hundreds more throughout 2021. The company says it will also improve client experience.
“We couldn’t be more excited to partner with world class investors Silver Lake and Dragoneer, who bring unmatched expertise as we enter this new phase in Entrata’s journey,” said new CEO Adam Edmunds. “Additionally, partnering with trailblazing local leaders like Ryan Smith, Todd Pedersen, and Josh James will give the executive team experienced allies with skills specific to our location,” said Edmunds. “I’ve never seen a market opportunity and competitive landscape quite like this. We have the strongest product in the industry, the best team, and now capital to execute at an even faster pace than before. Entrata will continue to lead through its innovation and unmatched client experience."