The two-year old startup Zenefits raised venture capital of $584 million in C round series of funding. In the round took part some new investors like TPG, Ashton Kutcher, Fidelity and Guy Oseary and some of the previous ones like Jared Leto. The money will be used for the bolstering of the company’s marketing and sales teams that serve Zenefits’ 10,000 business customers in 48 states.
Two years ago in its funding round Zenefits gained the seismic sum of $500 million that gave them a good base that led to its nowadays worth of $4.5 billion. According to experts, till 2016 Zenefits is expected to have $100 million annual run rate.
As whole, Zenefits is a company with 1,000 employees, founded in April 2013 in San Francisco by Laks Srini, a tech wiz, and Parker Conrad, entrepreneur and ex-founder of SigFig, online tool for wealth management. Their software product allows medium-sized and small businesses owners to manage the HR needs of their companies, including the health insurances and payroll. What makes this software different from the other HR programs on the market is that it comes to its users for free. The platform generates revenue through collection of commissions from the providers of health care.
According to one of the Andreessen Horowitz general partners, Lars Dalgaard, the achieved momentum of the software startup Zenefits is unprecedented for the last two years. Zenefits is the biggest investment of Andreessen Horowitz to date.