Funding round
Gusto Series C
Gusto, which works in payroll management software development in San Francisco, raised $140M in a Series C round announced on 31 Jul 2018, led by T. Rowe Price Associates, MSD Capital, Dragoneer Investment Group and Y Combinator, at a $2.00B post-money valuation. 9 firms took part. It is Gusto's fourth venture round on record; the one before was a Series B in Apr 2015.
$140M
Amount raised
$2.00B
Post-money valuation
$1.86B pre-money
9
Investors
4 leads
3.6x
Step-up from the Series B
$560M in Apr 2015
7.0%
Stake sold
new money over the post-money
Valuation
What this round says about the price
This round priced Gusto at $2.00B after the new money, 3.6 times the $560M of its Series B (Apr 2015). The $140M bought investors about 7.0% of the company. It came 39 months after Gusto's Series B. It is 23% of the $601M Gusto has raised in the venture rounds on record. Gusto raised again 12 months later: a Series D round of $200M in Jul 2019, at $3.80B 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 10 Apr 2015, led by CapitalG $60M$560M post-money
- Series C this round 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
T. Rowe Price Associates, MSD Capital, Dragoneer Investment Group and Y Combinator led the round with 5 other firms.
Lead investors
- T. Rowe Price Associates new investor
- MSD Capital new investor
- Dragoneer Investment Group backs 82 venture-backed companies new investor
- Y Combinator backs 1,295 venture-backed companies new investor
Also in the round
- General Catalyst backs 574 venture-backed companies new investor
- CapitalG backs 70 venture-backed companies new investor
- Kleiner Perkins backs 285 venture-backed companies new investor
- 137 Ventures backs 25 venture-backed companies new investor
- backs 96 venture-backed companies new investor
Use of proceeds
What the money is for
According to the announcement, the money goes to product development, sales and marketing, scaling operations and working capital.
- Product development
- Sales and marketing
- Scaling operations
- Working capital
Comparable rounds
How it compares
213 Series C rounds in Tech Companies within a year either side disclosed an amount; the median was $35M, and this round was 4.0 times the median. The closest in time, other companies' Series C rounds in Tech Companies:
| Company | Announced | Amount | Post-money | Led by |
|---|---|---|---|---|
| Tech Companies | 31 Jul 2018 | $30M | not disclosed | GV |
| Fever Tech Companies | 5 Jul 2018 | $20M | not disclosed | Atresmedia and Labtech |
| Ant Group Tech Companies | 11 Jun 2018 | $14.00B | $150.00B | not named |
| Tech Companies | 6 Jun 2018 | $70M | not disclosed | Georgian |
| Tech Companies | 1 Aug 2018 | $53M | not disclosed | Tiger Global |
| Pipedrive Tech Companies | 14 Jun 2018 | $50M | not disclosed | Insight Partners and Bessemer Venture Partners |
| Tech Companies | 28 Aug 2018 | $41M | not disclosed | SEB Private Equity |
| Tech Companies | 1 Aug 2018 | $30M | not disclosed | SV Health Investors and B Capital |
Sources
Where this comes from
Reported by 3 sources.
Questions
Frequently asked
How much did Gusto raise in its Series C round?
Gusto raised $140M in its Series C round, announced in Jul 2018.
Who led Gusto's Series C round?
T. Rowe Price Associates, MSD Capital, Dragoneer Investment Group and Y Combinator led it, with General Catalyst, CapitalG, Kleiner Perkins, 137 Ventures and Emergence Capital.
What was Gusto's valuation at the Series C round?
$2.00B post-money ($1.86B pre-money).
How does it compare with other Series C rounds in Tech Companies?
213 Series C rounds in Tech Companies within a year either side disclosed an amount; the median was $35M, and this round was 4.0 times the median.
Did Gusto raise again after this round?
Yes: a Series D round in Jul 2019 of $200M at $3.80B post-money.