Zenefits Gets 4.5B Valuation, Received $500M in Funding
Zenefits is a cloud based HR suite that streamlines the processes of HR departments all around the world. Using cloud, Zenefits puts all of the common HR tasks on one screen, making life easier for both employees and HR administrators.
Zenefits is making headlines today due to its massive 4.5B dollar valuation. In addition to being worth $4.5B, the Zenefits team has just taken on $500M in investor capital to help further scale its operations.
Zenefits says that it will use much of the investment to increase its staff two fold by the end of the year. Sources say that this two fold increase would boost Zenefits its total number of employees to 2,000. Zenefits says that many of the new jobs will be created in its Phoenix, AZ office.
Zenefits expects to do $100M in revenue by the end of 2015. At the end of 2014, Zenefits brought in $20M. This five fold increase in revenue has catapulted Zenefits to new heights.
Zenefits founder Parker Conrad described the investment saying, “The way I think of it, we’re in this car, we want to go really really fast, and really far, so we need to make a pit stop and fill up with gasoline.”
Conrad believes that his company’s investment capital will help further accelerate Zenefit’s reach into the SMB community.
Much of the $500M investment came from Andreessen Horowitz. Sources say that Andreessen Horowitz currently owns 25% of Zenefits. Other investors who contributed to this round of funding are:
- Founders Fund
- Khosla Ventures
- Insight Venture Partners
- Actor Ashton Kutcher
- Guy Oseary’s Sound Ventures
Past investors for Zenefits are the Institutional Venture Partners and actor Jared Leto, according to SFGate. The latest funding round for Zenefits was commenced by Fidelity Management and Research Company and TPG.
