Gusto, Inc.

Gusto was part of Y Combinator's Winter 2012 batch.{{cite news|url = http://pando.com/2012/12/11/zenpayroll-raises-ycs-largest-seed-round-from-the-mt-rushmore-of-valley-entrepreneurs/|title = ZenPayroll raises YC's largest seed round from the Mt. Rushmore of Valley entrepreneurs|last = Carney|first = Michael|date = December 11, 2012|accessdate = January 20, 2015|work = PandoDaily|archive-date = March 1, 2021|archive-url = https://web.archive.org/web/20210301195344/https://pando.com/2012/12/11/zenpayroll-raises-ycs-largest-seed-round-from-the-mt-rushmore-of-valley-entrepreneurs/|url-status = dead}} The service launched officially on December 11, 2012 in California{{cite news|url=https://techcrunch.com/2012/12/11/zenpayroll-launches-cloud-based-payroll-service-with-6-1m-in-seed-funding-from-the-ceos-at-yammer-box-yelp-and-dropbox/|title = ZenPayroll Launches Cloud-Based Payroll Service With $6.1M In Seed Funding From CEOs At Yammer, Box, Yelp And Dropbox|last = Williams|first = Alex|date = December 11, 2012|accessdate = January 20, 2015|work = TechCrunch}} by Joshua Reeves, Tomer London and Edward Kim.{{Cite web|title=FinTech Profile: Gusto – the all in one people platform {{!}} Venture Capital|url=https://fintechmagazine.com/venture-capital/fintech-profile-gusto-all-one-people-platform|access-date=2021-07-21|website=FinTech Magazine|date=16 May 2020 |language=en}}

On June 12, 2013, Gusto announced support for paying contract workers, including making sure of tax compliance (by filing the relevant Form 1099 and other paperwork). This was touted by some technology writers as giving the company an advantage over competitors such as ADP and Paychex, whose payroll software was claimed to lack the flexibility to accommodate contract workers. The company also announced plans to launch services in Florida, Texas, and New York state.{{cite news|url=https://techcrunch.com/2013/06/12/zenpayroll-now-gives-employers-a-way-to-pay-contractors-that-adp-cant/|title = ZenPayroll Now Gives Employers A Way To Pay Contractors That ADP Can't|last = Williams|first = Alex|date = June 12, 2013|accessdate = January 20, 2015|work = TechCrunch}}{{cite news|url = http://pando.com/2013/06/12/zenpayroll-adds-support-for-contract-workers-preps-for-expansion-to-florida-texas-and-soon-new-york/|title = ZenPayroll adds support for contract workers, preps for expansion to Florida, Texas, and soon New York|last = Carney|first = Michael|date = June 12, 2013|accessdate = January 20, 2015|work = PandoDaily|archive-date = January 13, 2021|archive-url = https://web.archive.org/web/20210113070816/https://pando.com/2013/06/12/zenpayroll-adds-support-for-contract-workers-preps-for-expansion-to-florida-texas-and-soon-new-york/|url-status = dead}}

In August 2013, Gusto announced that it had crossed $100 million in payments processed annually, and was launching in Florida, Texas, and Washington state.{{cite news|url = http://pando.com/2013/08/29/zenpayroll-crosses-100m-in-payroll-processed-annually-launches-in-texas-florida-and-washington/|title = ZenPayroll crosses $100M in payroll processed annually, launches in Texas, Florida, and Washington|last = Carney|first = Michael|date = August 29, 2013|accessdate = January 20, 2015|work = PandoDaily|archive-date = January 12, 2021|archive-url = https://web.archive.org/web/20210112173605/https://pando.com/2013/08/29/zenpayroll-crosses-100m-in-payroll-processed-annually-launches-in-texas-florida-and-washington/|url-status = dead}} In September 2014, Gusto announced its application programming interface (API) and partnerships with over a dozen small and medium business (SMB) back-office service companies.{{cite news|url = http://pando.com/2014/09/03/zenpayroll-aims-to-unite-the-smb-back-office-integrates-with-a-dozen-other-cloud-based-systems/|title = ZenPayroll aims to unite the SMB back-office, integrates with a dozen other cloud-based systems|last = Carney|first = Michael|date = September 3, 2014|accessdate = January 20, 2015|work = PandoDaily|archive-date = January 20, 2015|archive-url = https://web.archive.org/web/20150120212702/http://pando.com/2014/09/03/zenpayroll-aims-to-unite-the-smb-back-office-integrates-with-a-dozen-other-cloud-based-systems/|url-status = dead}}{{cite news|url=https://techcrunch.com/2014/09/03/zenpayroll-api/|title = ZenPayroll Partners With A Dozen Other SMB Back-Office Tools|date = September 3, 2014|accessdate = January 20, 2015|work = TechCrunch|last = Lawler|first = Ryan}} In December 2014, Gusto announced support for letting companies match employees' charitable donations.{{cite news|url=https://venturebeat.com/2014/12/16/zenpayroll-now-lets-companies-match-employees-charitable-donations/|title = ZenPayroll now lets companies match employees' charitable donations|last = Novet|first = Jordan|date = December 16, 2014|accessdate = January 20, 2015|work = VentureBeat}}

In July 2015, Gusto announced that it had expanded its business and opened a new office in Denver, Colorado.{{cite news|url=http://www.denverpost.com/business/ci_28549056/hickenlooper-google-backed-zenpayroll-plans-hire-1-750|title = Google-backed ZenPayroll plans to hire 1,750 people in Denver|date = July 28, 2015|accessdate = January 20, 2015|newspaper = Denver Post|last = Wallace|first = Alicia}} In September 2015, it was announced that ZenPayroll had changed its name to Gusto, and was broadening its focus to integrate health benefits and workers' compensation into its payroll software.{{cite news|url=https://venturebeat.com/2015/09/17/zenpayroll-changes-its-name-to-gusto-starts-offering-insurance-workers-compensation/|title = ZenPayroll changes its name to Gusto, starts offering insurance, workers' compensation|last = Novet|first = Jordan|date = September 17, 2015|accessdate = September 26, 2015|work = VentureBeat}} In 2016, the firm launched an ad campaign featuring Kristen Schaal playing a Gusto human resources representative.http://www.adweek.com/brand-marketing/ad-day-kristen-schaal-ultimate-hr-director-startups-fun-campaign-174024/ AdWeek

In 2019, Gusto announced the opening of its third office, in New York City.{{Cite web|title=SMB payroll startup Gusto raises $200M Series D, plans R&D expansion to NYC|url=https://techcrunch.com/2019/07/24/smb-payroll-startup-gusto-raises-200m-series-d-plans-rd-expansion-to-nyc/|access-date=2021-07-21|website=TechCrunch|date=24 July 2019 |language=en-US}}

In December 2012, Gusto announced that, back in April 2012 upon graduating from Y Combinator's Winter 2012 class, ZenPayroll had raised the largest seed round for a Y Combinator startup.{{Citation needed|date=August 2024}} $6.1 million was raised from investors including Box CEO and co-founder Aaron Levie, Yammer CEO and co-founder David O. Sacks, and others.{{cite news|url=https://blogs.wsj.com/venturecapital/2012/12/11/paychecks-move-to-the-cloud-as-google-salesforce-back-zenpayroll/|title = Paychecks Move to the Cloud as Google, Salesforce Back ZenPayroll|last = Gage|first = Deborah|date = December 11, 2012|accessdate = January 20, 2015|newspaper = Wall Street Journal}}

On February 19, 2014, Gusto announced a $20 million Series A funding round at a valuation of over $100 million. The round was led by General Catalyst Partners, with Kleiner Perkins Caufield & Byers also participating.{{cite news|url=https://techcrunch.com/2014/02/19/cloud-based-payroll-app-zenpayroll-raises-20m-from-general-catalyst-and-kleiner-at-a-100m-plus-valuation/|title = Cloud-Based Payroll App ZenPayroll Raises $20M From General Catalyst And Kleiner At A $100M-Plus Valuation|last = Rao|first = Leena|date = February 19, 2014|accessdate = January 20, 2015|work = TechCrunch}}{{cite news|url = http://pando.com/2014/02/19/hockysticking-zenpayroll-grabs-a-20m-series-a-sets-out-to-make-you-love-payroll-as-much-as-its-founders-do/|title = Hockeysticking ZenPayroll grabs a $20M Series A, sets out to make you love payroll as much as its founders do|last = Carney|first = Michael|date = February 19, 2014|accessdate = January 20, 2015|work = PandoDaily|archive-date = January 13, 2021|archive-url = https://web.archive.org/web/20210113120725/https://pando.com/2014/02/19/hockysticking-zenpayroll-grabs-a-20m-series-a-sets-out-to-make-you-love-payroll-as-much-as-its-founders-do/|url-status = dead}}{{cite news|url=https://venturebeat.com/2014/02/19/investors-deposit-20m-in-zenpayroll-as-the-company-eyes-expansion/|title = Investors deposit $20M in ZenPayroll as the company eyes expansion|last = Novet|first = Jordan|date = February 19, 2014|accessdate = January 20, 2015|work = VentureBeat}}{{cite news|url=https://blogs.wsj.com/venturecapital/2014/02/19/san-francisco-startup-zenpayroll-raises-20m-finds-novel-ways-to-lure-workers/|title = San Francisco Startup ZenPayroll Raises $20M, Finds Novel Ways to Lure Workers|last = Gage|first = Deborah|date = February 19, 2014|accessdate = January 20, 2015|newspaper = Wall Street Journal}}

In April 2015, the company secured $60 million in Series B funding. The round was led by Google Capital.{{Cite web|url=https://www.forbes.com/sites/ellenhuet/2015/04/06/zenpayroll-raises-60-million-google-capital/|title = ZenPayroll Scoops up $60 Million Funding Round Led by Google Capital| website=Forbes }}

In December 2015, Gusto raised $50 million in an opportunistic round that valued the company at $1 billion.{{cite web|url=https://www.buzzfeed.com/williamalden/gusto-is-valued-at-1-billion-in-new-funding-round#.uhJP0el5kz|title = Gusto Is Valued At $1 Billion In New Funding Round|date = December 21, 2015|accessdate = January 20, 2015|publisher = BuzzFeed|last = Alden|first = William}}

In July 2018, Gusto completed a $140 million Series B funding. The round included raises from CapitalG, Dragoneer Investment Group, T. Rowe Price and others.{{cite web|url=https://www.mg21.com/gusto.html |title=Cloud-based payroll, benefits, and human resource management solution company – Gusto.|publisher=mg21.com|date=2021-04-18}}

In July 2019, Gusto raised $200 million at a $3.8 billion valuation.{{cite magazine|url=https://www.forbes.com/sites/donnafuscaldo/2019/07/24/gusto-amasses-3-8-billion-valuation-with-latest-fundraising-round/#761090a52820|title = Gusto Amasses $3.8 Billion Valuation With Latest Fundraising Round|date = July 24, 2019|accessdate = August 29, 2019|magazine = Forbes|last = Fuscaldo|first = Donna}}{{Cite web|title=Gusto is now offering pieces of its service to other companies via API|url=https://techcrunch.com/2021/06/30/2171608/|access-date=2021-07-21|website=TechCrunch|date=30 June 2021 |language=en-US}}

Venture Beat reported on Gusto's price hike on August 10, 2016, stating “Gusto rationalized the increase as the result of{{nbsp}}... recent improvements, such as the launch of integrated health benefits, an 'enhanced' employee on-boarding experience that includes I-9 support and welcome emails, paid time-off tracking, and multiple pay rate tools.” [https://venturebeat.com/2016/08/10/gusto-raising-prices-for-all-customers-of-its-payroll-service-starting-october-1/ “Gusto Raising Prices for all Customers...”] However, in a Gusto-issued press release on September 17, 2015, the company announced many of these features:[https://gusto.com/about/press/press-releases/2015-09-17-zenpayroll-is-now-gusto ”ZenPayroll Is Now Gusto, On a Mission to Help Companies Put People First”] “For the first time{{nbsp}}... with Gusto, employees can easily: — Learn about their benefits, enroll or make changes to their health plans, through their personal Gusto accounts. — Contact Gusto's dedicated care team with their benefits-related questions. — Access their paystub and plan data in one place.” In 2014, when Gusto was named ZenPayroll,VentureBeat listed Gusto among the best back-office software for small businesses.{{cite news|url=https://venturebeat.com/2014/01/27/the-best-back-office-software-for-small-businesses/|title = The best back-office software for small businesses|last = Grant|first = Rebecca|date = January 27, 2014|accessdate = January 20, 2015|work = VentureBeat}} The New York Times has compared Gusto to larger payroll processors such as ADP, citing both advantages and disadvantages.{{cite news|url=http://bits.blogs.nytimes.com/2014/09/03/zenpayroll-gives-small-business-the-tech-tools-of-big-business/?_r=0|title = ZenPayroll Gives Small Business the Tech Tools of Big Business|last = Hardy|first = Quentin|date = September 3, 2014|accessdate = January 20, 2015|newspaper = New York Times}} Gusto has been praised by TechCrunch and PandoDaily for offering an easy-to-use service to small businesses and companies using contractors.

Gusto's core product offering is payroll processing. As part of the core payroll product, Gusto offers employee onboarding (work authorization forms, direct deposit forms, employee information aggregation). Separately, Gusto offers employee health insurance, dental insurance, and vision insurance enrollment and administration. In addition, Gusto offers other employee-benefit and related products through third parties, including 401K and workers' compensation insurance.{{Cite web|url=https://gusto.com/product/payroll|title=Gusto|website=Gusto|language=en|access-date=2018-07-10}}

In 2020, Gusto has built more than 50 new products in the last year directed toward helping small businesses. Releases included customizable payroll reports, a simplified Paycheck Protection Program (PPP) Loan Forgiveness tracker and a streamlined PPP application report that's been downloaded more than 80,000 times to date. Nationwide, Gusto enabled more than $2.5 billion worth of approved PPP loans.{{Cite web|last=Walden|first=Stephanie|date=2020-12-24|title=7 Fintech-Led Covid Relief Efforts That Went Above And Beyond In 2020|url=https://www.forbes.com/advisor/banking/fintech-led-covid-relief-efforts-that-went-above-and-beyond/|access-date=2021-01-12|website=Forbes Advisor|language=en-US}}

{{reflist|30em}}

• {{official website|https://gusto.com/}}

Category:Technology companies of the United States

Category:Technology companies based in the San Francisco Bay Area

Category:Y Combinator companies

Category:Payroll

Category:Software companies of the United States