Billion-dollar boost for HR-start up

CEO says it only took an hour for the phenomenally fast-growing company to increase its value by $1 billion

Billion-dollar boost for HR-start up
The CEO of the hottest HR start-up in Silicon Valley has revealed his company’s value jumped by a colossal US$1 billion in just one hour.

Good things come to those who wait

Zenefits CEO Parker Conrad told the Wall Street Journal that he had three offers on the table when his company was valued at about US$3 billion in May of this year.

He went on to say he was moments away from closing the round at a $US3.5 billion valuation when his mentor Lard Dalgaard advised him to hold out.

Dalgard, a general partner at VC firm Andreessen Horowitz, insisted there was a “feeding frenzy” around the company and if Conrad could wait until the end of the day, the valuation would very likely go up.

Just an hour later, Fidelity offered to invest at a US$4.5 billion valuation.

The astronomical valuation is based on Zenefits’ massive growth potential – the company claims it’s on track to hit US$100 million in revenue by January 2016 and if past performance is anything to go by, the outlook is more than positive.

It’s most recent valuation is almost nine times the US$500 million estimate a year earlier and the company also claims to have taken on more than 8,000 new customers.

What’s all the fuss about?

Zenefits – self-branded as “The #1 All-In-One HR Platform” – provides a free platform from which employers can easily manage insurance, payroll, benefits, and a whole host of related services.

Rather than relying on users to pay for the product, Zenefits makes money from the revenue paid to it by benefits providers on the system.

More like this:
Employees charged in Air France HR attack
48 per cent of working mothers say this task is “impossible”
Major backing for health benefit start-up

Free newsletter

Our daily newsletter is FREE and keeps you up-to-date with the world of HR. Please complete the form below and click on subscribe for daily newsletters from HRD America.

Recent articles & video

HRD launches game-changing website redesign

What is the secret to a killer recruitment strategy?

How to foster a digital workplace culture

IWD: Is advocacy the answer to the gender gap?

Most Read Articles

HRD launches game-changing website redesign