Funding round
Gusto Series D
Gusto, which works in payroll management software development in San Francisco, raised $200M in a Series D round announced on 24 Jul 2019, led by Fidelity Management & Research and Generation Investment Management, at a $3.80B post-money valuation. 9 firms took part. It is Gusto's fifth venture round on record; the one before was a Series C in Jul 2018.
$200M
Amount raised
$3.80B
Post-money valuation
$3.60B pre-money
9
Investors
2 leads
1.9x
Step-up from the Series C
$2.00B in Jul 2018
5.3%
Stake sold
new money over the post-money
Valuation
What this round says about the price
This round priced Gusto at $3.80B after the new money, 1.9 times the $2.00B of its Series C (Jul 2018). The $200M bought investors about 5.3% of the company. It came 12 months after Gusto's Series C. It is 33% of the $601M Gusto has raised in the venture rounds on record. Gusto raised again 25 months later: a Series E round of $175M in Aug 2021, at $9.50B 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 31 Jul 2018, led by T. Rowe Price Associates, MSD Capital and Dragoneer Investment Group $140M$2.00B post-money
- Series D this round 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
Fidelity Management & Research and Generation Investment Management led the round with 7 other firms.
Lead investors
- Fidelity Management & Research new investor
- Generation Investment Management new investor
Also in the round
- Dragoneer Investment Group backs 82 venture-backed companies new investor
- General Catalyst backs 574 venture-backed companies new investor
- T. Rowe Price Associates new investor
- CapitalG backs 70 venture-backed companies new investor
- 137 Ventures backs 25 venture-backed companies new investor
- Y Combinator backs 1,295 venture-backed companies new investor
- backs 96 venture-backed companies new investor
Joined the board: Anne Raimondi (Guru).
Use of proceeds
What the money is for
According to the announcement, the money goes to hiring, product development, geographic expansion, sales and marketing, scaling operations and working capital.
- Hiring
- Product development
- Geographic expansion
- Sales and marketing
- Scaling operations
- Working capital
Comparable rounds
How it compares
109 Series D rounds in Tech Companies within a year either side disclosed an amount; the median was $50M, and this round was 4.0 times the median. The closest in time, other companies' Series D rounds in Tech Companies:
| Company | Announced | Amount | Post-money | Led by |
|---|---|---|---|---|
| Trax Tech Companies | 23 Jul 2019 | $100M | $1.10B | HOPU Investments |
| Tech Companies | 10 Jul 2019 | $70M | not disclosed | Bregal Sagemount |
| Patreon Tech Companies | 16 Jul 2019 | $60M | not disclosed | Glade Brook |
| Tech Companies | 23 Jul 2019 | $56M | not disclosed | Owl Rock Capital Partners and NextEquity Partners |
| Yanolja Tech Companies | 11 Jun 2019 | $180M | $1.00B | GIC and Booking Holdings |
| ShareChat Tech Companies | 15 Aug 2019 | $100M | $650M | |
| Wellhub Tech Companies | 12 Jun 2019 | $100M | $1.11B | SoftBank |
| Tech Companies | 25 Jun 2019 | $75M | not disclosed | JP Morgan Asset Management |
Sources
Where this comes from
Reported by 3 sources.
Questions
Frequently asked
How much did Gusto raise in its Series D round?
Gusto raised $200M in its Series D round, announced in Jul 2019.
Who led Gusto's Series D round?
Fidelity Management & Research and Generation Investment Management led it, with Dragoneer Investment Group, General Catalyst, T. Rowe Price Associates, CapitalG and 137 Ventures and 2 more.
What was Gusto's valuation at the Series D round?
$3.80B post-money ($3.60B pre-money).
How does it compare with other Series D rounds in Tech Companies?
109 Series D rounds in Tech Companies within a year either side disclosed an amount; the median was $50M, and this round was 4.0 times the median.
Did Gusto raise again after this round?
Yes: a Series E round in Aug 2021 of $175M at $9.50B post-money.