- Human resources technology company Justworks announced recently that it raised $50 million in Series E funding
Justworks — one of the nation’s fastest-growing human resources technology companies — announced it has raised $50 million in Series E funding. Union Square Ventures and existing investor FirstMark Capital led the funding round. Including this round of funding, Justworks has raised a total of $143 million.
Existing investors Bain Capital Ventures, Index Ventures, Redpoint Ventures, Spark Capital, and Thrive Capital also joined the Series E funding round.
Launched in 2012, Justworks is known for making it easier to start, run, and grow a business. And the company pioneered the first truly technology-enabled version of the Professional Employer Organization (PEO) model thus creating a more cost-effective way to bring the advantages of using a PEO to businesses.
“Justworks reinvented the PEO model by delivering an experience people love,” said Isaac Oates, founder and CEO of Justworks. “The modern workforce expects simplicity and seamlessness in the tools they use and technology that empowers them to do things by themselves. By combining SaaS flexibility, transparent pricing and off-the-shelf functionality with 24/7 expert support for customers and their teams, Justworks provides an unmatched PEO offering for the modern business. This new investment will help us to strengthen these advantages and double down on our growth as the expectations of an increasingly millennial workforce continue to drive ever more B2B buying decisions.”
Justworks aggregates over 86,000 employees on its platform to provide economies of scale that democratize access to big-company benefits, health and wellness providers, payroll, HR tools, and compliance support. The PEO model has been around for several decades, allowing legacy players to grow into multibillion-dollar companies due to its solid customer value proposition and favorable business dynamics.
“Justworks has raised the bar on what people can expect from a PEO,” added Fred Wilson, partner at Union Square Ventures. “Their software is elegant, intuitive and easy-to-use, and Justworks’ technology and operating model allows them to serve small and medium-sized businesses better than anyone else in the market. This has led to rapid growth and, more importantly, the creation of a category-defining offering that drives levels of customer retention and satisfaction that are simply unheard of in the HR services space. We are pleased to welcome Justworks to our portfolio and to be their partner in creating a fundamentally better PEO product for the modern workforce.”
Oates pointed out that Justworks is driven to help entrepreneurs and businesses grow with confidence. And the success depends on making that a more accessible option for all.
“Working with Isaac and his team as a Board member for two years now, I have seen how the Justworks team rallies around its mission to level the playing field for entrepreneurs and help teams achieve their potential,” explained Beth Ferreira, partner at FirstMark Capital. “In that time, Justworks has more than doubled in size and realized significant operational sophistication and efficiency at scale. We are strong believers in the company as they continue to push forward to revolutionize the HR industry.”
