Payroll Startup Gusto Raises $200M Series D

San Francisco-based, payroll, benefits, and HR platform, Gusto , announced it has raised $200m in Series D funding; bringing its total funding to date to $516.1m.

Established in 2011, Gusto serves more than 100,000 small businesses across the U.S. from processing payrolls to providing benefits like health insurance, 401(k) retirement plans, and 529 college savings plans–which have traditionally only been available through larger companies.

“As Gusto continues to scale, we’ve been intentional about choosing investors that optimize for the long term. We’ll be building Gusto for decades, and our goal is to be a durable and sustainable business. Fidelity and Generation share our belief that the best business model is to align the success of your customers with your own success. Currently, only 50 percent of small businesses in America make it past year five. This is unacceptable, and we’re here to change that. Gusto is committed to increasing the durability of small businesses everywhere by helping them build great places to work where their employees thrive.” – Josh Reeves, Gusto CEO and cofounder.

“Generation’s investment in Gusto is rooted in our deep research into the future of compensation. We believe Gusto’s people platform has the potential to balance the disparity in benefits access, and sets a new industry model for what total compensation can look like for employees at companies of all sizes. Gusto has simplified payroll for more than 100,000 small businesses in the U.S. and has made health coverage available to many who would otherwise not have access to it. Josh and his team represent the model of business we look to support with our Sustainable Solutions Strategy–those accelerating the transition to a more sustainable economy.” – Shalini Rao, Director in Growth Equity at Generation.

The investment will be used to double down on research and development as Gusto continues the expansion of the company’s people platform, enabling small business owners and operators to onboard their employees, pay them, provide health insurance, and support their teams all in one integrated solution.