Gusto Raises $200 Million for its SMB HR Software Platform

SAN FRANCISCO–(BUSINESS WIRE)–Gusto, the people platform that helps small businesses take care of their teams, today announced that it has raised $200 million in Series D funding. Leading late-stage investor Fidelity Management & Research Company, and the dedicated sustainable investor Generation Investment Management, joined existing Gusto investors Dragoneer Investment Group, General Catalyst, and those advised by T. Rowe Price Associates, Inc. in the round.

The company also announced that it has named Anne Raimondi, a SaaS industry veteran with more than 20 years of experience in scaling technology businesses, to its Board of Directors.

“As Gusto continues to scale, we’ve been intentional about choosing investors that optimize for the long term. We’ll be building Gusto for decades, and our goal is to be a durable and sustainable business,” said Josh Reeves, Gusto CEO and co-founder. “Fidelity and Generation share our belief that the best business model is to align the success of your customers with your own success. Currently, only 50 percent of small businesses in America make it past year five. This is unacceptable, and we’re here to change that. Gusto is committed to increasing the durability of small businesses everywhere by helping them build great places to work where their employees thrive.”

“Generation’s investment in Gusto is rooted in our deep research into the future of compensation. We believe Gusto’s people platform has the potential to balance the disparity in benefits access, and sets a new industry model for what total compensation can look like for employees at companies of all sizes. Gusto has simplified payroll for more than 100,000 small businesses in the U.S. and has made health coverage available to many who would otherwise not have access to it,” said Shalini Rao, Director in Growth Equity at Generation. “Josh and his team represent the model of business we look to support with our Sustainable Solutions Strategy–those accelerating the transition to a more sustainable economy.”

The investment will be used to double down on research and development as Gusto continues the expansion of the company’s people platform, enabling small business owners and operators to onboard their employees, pay them, provide health insurance, and support their teams all in one integrated solution. Gusto will also continue growing its team in Denver, San Francisco, and New York.

About Gusto

Gusto is a modern, online people platform that helps small businesses take care of their teams. In addition to full-service payroll, Gusto offers health insurance, 401(k)s, expert HR, employee self-onboarding, and team management tools. The company serves over 100,000 businesses nationwide and has offices in Denver, New York City, and San Francisco.

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