Funding round
Gusto Series B
Gusto, which works in payroll management software development in San Francisco, raised $60M in a Series B round announced on 10 Apr 2015, led by CapitalG, at a $560M post-money valuation. 26 firms took part. It is Gusto's third venture round on record; the one before was a Series A in Feb 2014.
$60M
Amount raised
$560M
Post-money valuation
26
Investors
1 lead
11%
Stake sold
new money over the post-money
Valuation
What this round says about the price
This round priced Gusto at $560M after the new money. The $60M bought investors about 11% of the company. It came 14 months after Gusto's Series A. It is 10.0% of the $601M Gusto has raised in the venture rounds on record. Gusto raised again 39 months later: a Series C round of $140M in Jul 2018, at $2.00B post-money.
Gusto's funding rounds
Gusto has 6 venture rounds on record. This one is highlighted.
- Seed 11 Dec 2012 $6.1M
- Series A 19 Feb 2014, led by General Catalyst and Kleiner Perkins $20M
- Series B this round 10 Apr 2015, led by CapitalG $60M$560M post-money
- Series C 31 Jul 2018, led by T. Rowe Price Associates, MSD Capital and Dragoneer Investment Group $140M$2.00B post-money
- Series D 24 Jul 2019, led by Fidelity Management & Research and Generation Investment Management $200M$3.80B post-money
- Series E 10 Aug 2021, led by T. Rowe Price Associates, Inc. $175M$9.50B post-money
Investors
Who put money in
CapitalG led the round with 25 other firms.
Lead investor
- CapitalG backs 70 venture-backed companies new investor
Also in the round
- backs 96 venture-backed companies new investor
- General Catalyst backs 574 venture-backed companies new investor
- GV backs 428 venture-backed companies new investor
- Kleiner Perkins backs 285 venture-backed companies new investor
- backs 97 venture-backed companies new investor
- American Express Ventures new investor
- Andreessen Horowitz backs 722 venture-backed companies new investor
- backs 15 venture-backed companies new investor
- BOND backs 91 venture-backed companies new investor
- C2 Investment new investor
- backs 8 venture-backed companies new investor
- Company Capital new investor
- backs 8 venture-backed companies new investor
- Eclipse backs 79 venture-backed companies new investor
- backs 212 venture-backed companies new investor
- Founders Fund backs 368 venture-backed companies new investor
- backs 39 venture-backed companies new investor
- Graypes GmbH new investor
- Highbury Group new investor
- Insight Partners backs 548 venture-backed companies new investor
- backs 47 venture-backed companies new investor
- Sound Ventures backs 114 venture-backed companies new investor
- backs 108 venture-backed companies new investor
- backs 50 venture-backed companies new investor
- backs 30 venture-backed companies new investor
Use of proceeds
What the money is for
According to the announcement, the money goes to scaling operations.
- Scaling operations
Comparable rounds
How it compares
215 Series B rounds in Tech Companies within a year either side disclosed an amount; the median was $15M, and this round was 4.1 times the median. The closest in time, other companies' Series B rounds in Tech Companies:
| Company | Announced | Amount | Post-money | Led by |
|---|---|---|---|---|
| Tech Companies | 27 Apr 2015 | $30M | not disclosed | Glynn Capital |
| Tech Companies | 16 Apr 2015 | $18M | not disclosed | Valar Ventures |
| Olive Tech Companies | 13 Apr 2015 | $15M | not disclosed | not named |
| Tech Companies | 16 Apr 2015 | $15M | not disclosed | Wing Venture Capital |
| Tech Companies | 28 Apr 2015 | $13M | not disclosed | Kaiser Permanente Ventures |
| Tech Companies | 21 Apr 2015 | $9.3M | not disclosed | Upfront Ventures |
| Tech Companies | 1 Apr 2015 | $5.0M | not disclosed | Baidu |
| Tech Companies | 1 Apr 2015 | $3.0M | not disclosed | not named |
Questions
Frequently asked
How much did Gusto raise in its Series B round?
Gusto raised $60M in its Series B round, announced in Apr 2015.
Who led Gusto's Series B round?
CapitalG led it, with Emergence Capital, General Catalyst, GV, Kleiner Perkins and Acrew Capital and 20 more.
What was Gusto's valuation at the Series B round?
$560M post-money.
How does it compare with other Series B rounds in Tech Companies?
215 Series B rounds in Tech Companies within a year either side disclosed an amount; the median was $15M, and this round was 4.1 times the median.
Did Gusto raise again after this round?
Yes: a Series C round in Jul 2018 of $140M at $2.00B post-money.