Good Day for Gusto

Gusto, the leading payroll, benefits and HR technology platform for small businesses, has raised $140m in a Series C round, bringing its total funding to date to $316m. The round was led by T. Rowe Price Associates, MSD Capital, Dragoneer Investment Group with participation from Y Combinator Continuity Fund. Additional investors include: General Catalyst, CapitalG, Kleiner Perkins, 137 Ventures, and Emergence Capital.

Founded in 2011, the San Francisco-based startup provides a cloud-based payroll, benefits, and human resource management solutions to over 60k businesses. Gusto, which is also a licensed insurance agency, offers different insurance products such as health, life, disability, and workers compensation. When it comes to workers’ comp, the company has a partnership with AP Intego to deliver a fully integrated solution.

“We are thrilled to welcome these long-term investors to the Gusto community. They share our passion for creating a world where work empowers a better life. We chose these investors because they care about enabling small businesses with modern payroll, benefits and HR. There are millions of companies out there to help, and this is a long-term journey for us. We’re just getting started.” Cofounder and CEO of Gusto, Josh Reeves.

“We believe Gusto has an opportunity beyond the payroll category in which they have demonstrated leadership for the last six years. The company has a strong and focused management team, and it has the potential to become much larger as it expands its efforts to employees who seek to improve their financial mobility and achieve greater personal prosperity.” – Portfolio Manager at T. Rowe Price New Horizons Fund, Henry Ellenbogen.