Total amount raised
$2 Billions
Latest funding date
7/1/2018
Location
Gusto has successfully raised significant funding over multiple rounds, attracting a diverse group of investors. The platform specializes in simplifying payroll, HR, and benefits management for small and medium-sized businesses.
Keep reading to explore the intricacies of Gusto's fundraising journey and the investors backing this innovative platform.
What Is Gusto?
Gusto, founded in November 2011, is a software-as-a-service (SaaS) company based in San Francisco, California. The company specializes in Human Capital Management (HCM), offering a comprehensive suite of HR and payroll services.
Founded by Edward Kim, Josh Reeves, and Tomer London, Gusto simplifies complex HR and payroll tasks, empowering businesses to focus on what matters most. Their services include payroll processing, benefits administration, time and attendance tracking, and employee onboarding.
With a workforce of 1001-5000 employees, Gusto continues to innovate and expand its offerings to meet the evolving needs of small and medium-sized businesses.
How Much Funding Has Gusto Raised?
- Series B
- Amount Raised: $90M
- Date: December 2015
- Lead Investors: CapitalG, General Catalyst
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To scale operations and expand service offerings.
- Series C
- Amount Raised: $140M
- Date: July 2018
- Lead Investors: CapitalG, Dragoneer Investment Group, T. Rowe Price, Y Combinator
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To enhance product development and market reach.
- Series D
- Amount Raised: $200M
- Date: July 2019
- Lead Investors: Fidelity, Generation Investment Management
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support growth and expand into new markets.
- Series E
- Amount Raised: $175M
- Date: August 2021
- Lead Investors: T. Rowe Price
- Valuation at Round: Nearly $10 billion
- Motivation Behind the Round: To support growth and expansion in providing comprehensive HR solutions.
- Series E Extension
- Amount Raised: $55M
- Date: May 2022
- Lead Investors: Friends & Family Capital
- Valuation at Round: Nearly $10 billion
- Motivation Behind the Round: To further bolster Gusto's capabilities and partnerships.
- Venture Round
- Amount Raised: Not publicly disclosed
- Date: January 2023
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To navigate market conditions and prepare for future growth.
Total amount raised: $660M. Current valuation: Nearly $10 billion.
Key Investors
- CapitalG
- Details: CapitalG is the growth equity investment arm of Alphabet Inc. They focus on late-stage growth companies.
- Investment Focus Areas: Technology, healthcare, financial services.
- Notable Investments: Airbnb, Stripe, Lyft.
- T. Rowe Price
- Details: T. Rowe Price is a global investment management firm known for its long-term growth investments. They manage a diverse portfolio across various sectors.
- Investment Focus Areas: Technology, healthcare, financial services.
- Notable Investments: Amazon, Facebook, Google.
- Fidelity
- Details: Fidelity Investments is one of the largest asset managers in the world. They offer a wide range of financial services including investment management, retirement planning, and brokerage services.
- Investment Focus Areas: Technology, healthcare, financial services.
- Notable Investments: Tesla, Uber, Alibaba.
- General Catalyst
- Details: General Catalyst is a venture capital firm that invests in early-stage and growth-stage companies. They focus on building long-term partnerships with entrepreneurs.
- Investment Focus Areas: Technology, healthcare, consumer services.
- Notable Investments: Airbnb, Stripe, Snap.
- Generation Investment Management
- Details: Generation Investment Management is a sustainable investment firm co-founded by Al Gore. They focus on long-term investments that promote sustainability.
- Investment Focus Areas: Technology, healthcare, sustainable energy.
- Notable Investments: Tesla, Beyond Meat, Asana.
What's Next for Gusto?
Gusto stands at the cusp of significant growth opportunities. With over 200,000 business customers and billions in payroll processed annually, the potential for expanding their all-in-one HR platform is immense. Recent partnerships and integrations, such as those with Whiz Consulting and Engagedly, highlight the company's strategy to enhance its service offerings and market reach.
Future fundraising appears promising, especially given the successful extension of their Series E round. High investor demand and a valuation nearing $10 billion position Gusto well for additional funding rounds or even an IPO when market conditions improve. However, challenges such as navigating evolving HR regulations and maintaining service quality amidst rapid scaling remain critical.
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