Warburg Pincus has announced it has made a majority investment in compensation software service company PayScale as part of a deal worth up to $100 million. PayScale was founded in 2000 and offers customers access to the world’s largest database of individual compensation profiles, which contains more than 40 million salary profiles.
PayScale’s products are powered by algorithms that dynamically acquire and aggregate compensation information for millions of individuals in real-time. PayScale has more than 3,000 of its enterprise subscribers in 13 countries that rely on the company’s products to make salary decisions for more than 2 million employees.
“This investment validates PayScale’s position as the leading compensation data and SaaS provider enabling businesses to attract, retain and optimize the return on their most important assets, their people,” said Mike Metzger, President and Chief Executive Officer of PayScale. ?By leveraging Warburg Pincus? expertise, experience and growth capital, we will be able to enhance our product offerings and accelerate our growth.”
The funding will be used to support marketing, sales initiatives, and new hires. Prior to this deal, PayScale raised funding from investors like Montlake Capital, Madrona Venture Group, Fluke Venture Partners, Trinity Ventures, Allen & Co., and SAP Ventures.