The PEO model has been around for decades, allowing businesses to grow into multibillion-dollar companies, because of its solid customer value suggestions and favorable business dynamics.
FREMONT, CA: Justwork, an NYC-based HR technology company, closed a $50 million Series E funding led by Union Square Ventures and FirstMark Capital. The funding was participated by existing investors, including Bain Capital Ventures, Index Ventures, Redpoint Ventures, Spark Capital, and Thrive Capital. The newly raised capital brings the company's total funding to $143 million.
"Justworks has raised the bar on what people can expect from a PEO," said Fred Wilson, partner at Union Square Ventures. "Their software is elegant, intuitive, and easy-to-use, and Justworks' technology and operating model allow 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."
Founded in 2012 by Issac Oates, CEO, Justworks offers a platform to start, run and grow a business efficiently. Its technology-enabled version of the Professional Employer Organization (PEO) model creates a cost-effective platform for small and medium-sized companies with under 200 employees. It provides access to big-company benefits, health and wellness providers, payroll, HR tools, and compliance support for thousands of entrepreneurs and their teams across all 50 U.S. states. The company intends to use the funds to continue expanding operations and its business reach.
"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."