SALT LAKE CITY — Utah Jazz owner Ryan Smith is among the leaders of a monster $507 million venture funding deal announced Wednesday by apartment management software innovator Entrata.
Entrata says the transaction, which represents the company's first institutional investment, is the biggest private investment round in Utah history. The fresh stack of cash will help the company finance product development and further growth amid a booming global housing market.
Smith, who navigated his own record-smashing deal when the customer experience company he co-founded, Qualtrics, was acquired in 2018 for $8 billion by European software giant SAP, lauded Entrata for its success after years of self-financing and said the company is set to solidify the top spot in its category.
"It's rare to find a company of this size and scale that has not taken institutional funding," Smith said in a statement. "Bootstrapping forces a company to build with the long-term view in mind which leads to better experiences for customers and employees.
"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."
Founded in 2003, Entrata has built a cloud-based software suite that automates many of the tasks that come with managing multi-family developments. The company says it is currently processing more than $20 billion in rent payments annually through its platform and serving more than 20,000 apartment communities across the United States. Entrata says it's the fastest-growing software company in real estate with over $200 million in annual recurring revenue. The company currently has over 2,100 employees and plans are in place to add hundreds more in the coming year.
The funding round was led by Silver Lake, Smith and Vivint Smart Home Founder Todd Pedersen, with participation from Dragoneer, Domo Founder and CEO Josh James, and other investors. In addition, Pedersen and Silver Lake Managing Director Kyle Paster will join the company's board of directors.
"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," Paster said in a statement. "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'll see them become a true household name in the tech industry quickly as they continue to take share as a cloud market leader."
On Wednesday, Entrata also announced company co-founder and CEO Dave Bateman was stepping aside as chief executive but will continue as board chairman and will remain a majority owner of the company after the investment deal closes.
Entrata said new CEO, Adam Edmunds, is set to "provide the vision and drive through the company's next phase of growth." Edmunds is a veteran Utah entrepreneur who has founded, grown and exited several software-as-service companies, including Allegiance, which sold to MaritzCX in 2014.
Edmunds said he's excited to lead Entrata into its new era and noted the record deal drew support from a bevy of Utah tech-heavy hitters.
"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," Edmunds said in a statement. "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.
"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."
Outgoing CEO Bateman is a well-known figure in Utah Republican party circles, most notably for various offers to pay off state party debts related to legal fights against SB54, the controversial state law passed in 2014 that allows candidates to earn a place on primary ballots by gathering signatures rather than through the caucus system.