Justworks has successfully raised approximately $143 million over five funding rounds, achieving a valuation of around $1 billion. The platform offers small and medium-sized businesses access to benefits, payroll, HR tools, and compliance support.
Keep reading to explore the intricacies of Justworks' fundraising journey and the investors backing this innovative platform.
What Is Justworks?
Justworks, founded in 2013, is headquartered in New York City. The company was established by Isaac Oates and focuses on providing modern HR software, payroll solutions, and benefits access for small businesses.
With a mission to simplify and support HR needs, Justworks offers scalable solutions for hiring, onboarding, payroll, compliance, and benefits. Their platform is designed to help businesses manage their HR efficiently and effectively.
Currently, Justworks employs over 800 people, dedicated to delivering exceptional service and support to their clients. The company continues to grow, driven by its commitment to innovation and customer satisfaction.
How Much Funding Has Justworks Raised?
- Seed Round
- Amount Raised: $1,000,000
- Date: October 2013
- Lead Investors: Index Ventures
- Motivation Behind the Round: Early-stage funding to support initial operations and product development.
- Series A
- Amount Raised: $6,000,000
- Date: October 2014
- Motivation Behind the Round: To scale operations and further develop the product.
- Series B
- Amount Raised: $13,000,000
- Date: May 2015
- Lead Investors: Thrive Capital, Bain Capital Ventures
- Motivation Behind the Round: To expand market reach and enhance service offerings.
- Series C
- Amount Raised: $33,000,000
- Date: March 2016
- Lead Investors: Redpoint Ventures, Thrive Capital, Bain Capital Ventures
- Motivation Behind the Round: To accelerate growth and improve the business operations suite.
- Series D
- Amount Raised: $40,000,000
- Date: March 2018
- Lead Investors: FirstMark Capital
- Motivation Behind the Round: To build a simpler business operations suite.
- Series E
- Amount Raised: $50,000,000
- Date: January 2020
- Lead Investors: FirstMark, Union Square Ventures
- Motivation Behind the Round: To continue scaling and enhancing the platform.
Total Amount Raised: $143,000,000
Current Valuation: $1 billion
Key Investors
- FirstMark Capital
- Details: FirstMark Capital is a venture capital firm based in New York City. They focus on early-stage technology companies and have a strong track record of successful investments.
- Investment Focus Areas: Technology, consumer, enterprise.
- Notable Investments: Pinterest, Shopify, Riot Games.
- Redpoint Ventures
- Details: Redpoint Ventures is a venture capital firm that invests in seed, early, and growth-stage companies. They have a diverse portfolio across various sectors.
- Investment Focus Areas: Consumer technology, enterprise technology, healthcare.
- Notable Investments: Netflix, Stripe, Twilio.
- Index Ventures
- Details: Index Ventures is a global venture capital firm that invests in technology and life sciences companies. They support companies at all stages of development.
- Investment Focus Areas: Technology, life sciences, consumer.
- Notable Investments: Dropbox, Slack, Robinhood.
- Bain Capital
- Details: Bain Capital is a multi-asset investment firm that invests across various sectors. They have a significant presence in private equity, venture capital, and credit.
- Investment Focus Areas: Technology, healthcare, consumer products.
- Notable Investments: LinkedIn, SurveyMonkey, DocuSign.
- Thrive Capital
- Details: Thrive Capital is a venture capital firm that focuses on internet and software investments. They are known for backing transformative companies.
- Investment Focus Areas: Internet, software, technology.
- Notable Investments: Instagram, GitHub, Stripe.
What's Next for Justworks?
Justworks stands at the cusp of significant growth opportunities, driven by the increasing demand for streamlined business operations among small to medium-sized enterprises. The company’s focus on simplifying HR, payroll, and benefits management positions it well to capture a substantial market share. As businesses seek efficient and cost-effective solutions, Justworks' comprehensive suite of tools can reduce human error and enhance operational efficiency.
Future fundraising appears promising, with the potential to attract further investment to scale operations and expand product offerings. The competitive landscape, featuring players like Zenefits and Gusto, underscores the need for continuous innovation. Challenges such as regulatory compliance and maintaining service quality amidst rapid expansion will be critical for Justworks to navigate as it pursues its growth trajectory.
Use Clay to Get Funding Data
Sales professionals, take your strategy to the next level by leveraging Clay’s platform to access comprehensive fundraising data on companies like Justworks and gather other critical business insights.
Sign up for free on Clay and unlock the potential to drive your sales efforts with unparalleled data and insights.
