Gusto
The people platform for small businesses
TL;DR: The people platform for small businesses.
Key Metrics
Milestones
Pricing
Timeline
2008
Josh Reeves founds Facebook app platform company, his first startup
2010
Reeves' first startup acquired after reaching 40M users - but felt hollow, motivating mission-driven next venture
2010
Josh Reeves and Eddie Kim reconnect after Eddie spontaneously runs a half-marathon to win a bet
2011
Tomer London moves from Israel to Stanford for EE PhD; paired with Josh through alumni mentorship program
2011
Three co-founders bond over shared experience of parents running small businesses with painful payroll processes
2012-01
Accepted into Y Combinator Winter 2012 batch as ZenPayroll
2012-01
Tomer cold-calls SMB owners from walk-in closet, finding prospects on Yelp. 2/10 calls show instant excitement
2012-03
YC Demo Day: ~50-80 customers onboarded. Chose name ZenPayroll days before, $7 domain
2012-06
Founders live together, working 24/7 to build Minimal Loveable Product
2012-12
Public launch in California, salaried employees only. Raised $6.1M seed (largest in YC history)
2013
~100 customers. Tomer personally onboards first ~50 companies' employees
2013-08
Exceeded $100M in payments processed annually. Expanded to Florida, Texas, and Washington state
2014-02
Raised $20M Series A led by Google Capital with General Catalyst and Kleiner Perkins
2014
High-touch onboarding continues for ~1 year before building self-service capability
2015-04
Raised $60M Series B led by Google Capital with Emergence Capital, Ribbit Capital
2015
10,000 customers. Tomer calls 20 customers about health benefits; 17/20 sign up immediately
2015-09
Rebranded from ZenPayroll to Gusto. Launched health benefits and workers' compensation
2016
Partnered with Guideline for 401(k) services
2018
Revenue reaches ~$100M. Raised $140M Series C led by T. Rowe Price
2019
Raised $200M Series D at $3.8B valuation. Josh Reeves confirms focus on sustainable unit economics
2020
Launched Gusto Wallet (FDIC-insured accounts and debit cards) with nbkc Bank partnership
2020
COVID-19 drives massive demand for compliance features - emerged organically from customer support calls
2020
Secured $50M debt financing from Sixth Street Growth
2021-06
Launched Gusto Embedded Payroll API. Acquired Ardius (R&D tax credits) and Symmetry Software (tax calculations)
2021-08
Raised $175M Series E at $9.5B valuation led by T. Rowe Price. Revenue ~$200M
2021-10
Announced international contractor support. Acquired RemoteTeam
2021
100,000+ customers. 50% year-over-year growth. 1,400+ employees
2022-05
Raised $55M Series E extension at same $9.5B valuation
2023
Revenue exceeds $500M. 300,000+ direct customers. Achieved free cash flow positivity
2023-06
Partnered with Remote.com for international payroll in 75+ countries
2023-07
186,000 additional SMBs accessing services through 27 Embedded Payroll partners
2024
Revenue reaches $735M (+33% YoY). 401(k) services grew 50% YoY. Gusto Money expanded 140% YoY
2025-03
400,000+ direct customers
2025-07
Tender offer values company at $9.3B
2025-08
Acquired Guideline for in-house 401(k) services ($851M)
Distribution
Launches
Growth Story
Target Audience
Small and medium businesses (1-500 employees), accountants, vertical SaaS platforms needing embedded payroll
Problem Solved
Small business owners spending hours on manual payroll, tax compliance, and benefits administration with error-prone legacy tools designed for enterprises