Funding round
Gusto Series E
Gusto, which works in payroll management software development in San Francisco, raised $175M in a Series E round announced on 10 Aug 2021, led by T. Rowe Price Associates, Inc., at a $9.50B post-money valuation. 15 firms took part. It is Gusto's sixth venture round on record; the one before was a Series D in Jul 2019.
$175M
Amount raised
$9.50B
Post-money valuation
$9.32B pre-money
15
Investors
1 lead
2.5x
Step-up from the Series D
$3.80B in Jul 2019
1.8%
Stake sold
new money over the post-money
Valuation
What this round says about the price
This round priced Gusto at $9.50B after the new money, 2.5 times the $3.80B of its Series D (Jul 2019). The $175M bought investors about 1.8% of the company. It came 25 months after Gusto's Series D. It is 29% of the $601M Gusto has raised in the venture rounds on record. No later venture round is on record for Gusto.
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 24 Jul 2019, led by Fidelity Management & Research and Generation Investment Management $200M$3.80B post-money
- Series E this round 10 Aug 2021, led by T. Rowe Price Associates, Inc. $175M$9.50B post-money
Investors
Who put money in
T. Rowe Price Associates, Inc. led the round with 14 other firms.
Lead investor
- T. Rowe Price Associates, Inc. new investor
Also in the round
- Sands Capital backs 71 venture-backed companies new investor
- Fidelity Management and Research Company LLC new investor
- Durable Capital Partners backs 39 venture-backed companies new investor
- Generation Investment Management new investor
- Emerson Collective backs 76 venture-backed companies new investor
- backs 44 venture-backed companies new investor
- backs 28 venture-backed companies new investor
- Cross Creek new investor
- 137 Ventures backs 25 venture-backed companies new investor
- General Catalyst backs 574 venture-backed companies new investor
- backs 96 venture-backed companies new investor
- Dragoneer Investment Group backs 82 venture-backed companies new investor
- Franklin Templeton new investor
- backs 97 venture-backed companies new investor
Joined the board: Lori Dickerson Fouché (TIAA Financial Solutions) and Vicki Fuller (Roosevelt University’s board of trustees).
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, acquisitions and working capital.
- Hiring
- Product development
- Geographic expansion
- Sales and marketing
- Scaling operations
- Acquisitions
- Working capital
Comparable rounds
How it compares
118 Series E rounds in Tech Companies within a year either side disclosed an amount; the median was $145M, and this round was 1.2 times the median. The closest in time, other companies' Series E rounds in Tech Companies:
| Company | Announced | Amount | Post-money | Led by |
|---|---|---|---|---|
| Tiendanube Tech Companies | 17 Aug 2021 | $500M | $3.10B | Insight Partners and Tiger Global Management |
| Dataiku Tech Companies | 5 Aug 2021 | $400M | $4.60B | Tiger Global |
| Tech Companies | 10 Aug 2021 | $240M | $3.35B | Alkeon and B Capital |
| Tech Companies | 5 Aug 2021 | $125M | $1.00B | Georgian |
| Tech Companies | 21 Aug 2021 | $105M | $3.33B | Koch Disruptive Technologies |
| Tech Companies | 5 Aug 2021 | $100M | $1.20B | SoftBank Vision Fund |
| Tech Companies | 10 Aug 2021 | $81M | $1.00B | Accomplice |
| Mirakl Tech Companies | 21 Sep 2021 | $555M | $3.50B | Silver Lake |
Sources
Where this comes from
Reported by 3 sources.
Questions
Frequently asked
How much did Gusto raise in its Series E round?
Gusto raised $175M in its Series E round, announced in Aug 2021.
Who led Gusto's Series E round?
T. Rowe Price Associates, Inc. led it, with Sands Capital, Fidelity Management and Research Company LLC, Durable Capital Partners, Generation Investment Management and Emerson Collective and 9 more.
What was Gusto's valuation at the Series E round?
$9.50B post-money ($9.32B pre-money).
How does it compare with other Series E rounds in Tech Companies?
118 Series E rounds in Tech Companies within a year either side disclosed an amount; the median was $145M, and this round was 1.2 times the median.