The transaction represents the largest private investment round in Utah history.

Utah-based Entrata, the fastest-growing software company in real estate and a provider of property management software to more than 20,000 apartment communities across the United States, announced today (July 7, 2021) its fundraise of $507 million. This is the startup’s first institutional funding since its founding in 2003. (CISION PRNewswire)

The round was led by Silver Lake, Qualtrics Founder Ryan Smith and Vivint Smart Home Founder Todd Pedersen, with participation from Dragoneer, Domo Founder and CEO Josh James, and other strategic investors.

“It’s rare to find a company of this size and scale that has not taken institutional funding. Bootstrapping forces a company to build with the long-term view in mind which leads to better experiences for customers and employees,” said Smith. “I’ve always believed in the ‘nail it, then scale it’ model and this new capital will help Entrata accelerate and scale in a way that positions them to become the unquestioned leader in global property management throughout the world.”

Use of funds

Entrata will use the funds to expand its workforce by hundreds of new employees and more than double its research and development spend on the Entrata platform. It will also kick off an aggressive international expansion.

“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 founder and chairman Dave 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.”

Entrata already processes more than $20 billion in rent payments annually through its platform. It earns over $200 million in annual recurring revenue and has more than 2,100 employees on its rolls.

“This company is perfectly positioned to continue scaling quickly, and the potential within the industry is massive,” said Silver Lake Co-CEO Egon Durban and Managing Director Kyle Paster.

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Image Credit: Glassdoor/Entrata