Every

Every is a San Francisco, California-based financial technology company that provides an all-in-one back-office platform integrating banking, payroll, benefits, bookkeeping, tax management, incorporation, and compliance for early-stage startups. The software-as-a-service platform specifically targets emerging technology companies scaling from zero to $1 million in revenue, generating income through monthly subscription fees for accounting modules alongside standard interchange revenue. Operating with a current headcount of 12 employees, the enterprise has raised a total of $32 million in venture capital funding across multiple financing rounds to support its ongoing product expansion. This capitalization includes a $9.5 million seed round in late 2023 and a subsequent $22.5 million Series A round in September 2024, backed by institutional investors including Redpoint, Y Combinator, Okta Ventures, and Base10 Partners. Every was founded in 2021 by Rajeev Behera and Barry Peterson.

High-Level Overview

Gusto is a comprehensive cloud-based platform that integrates banking, payroll, benefits, bookkeeping, and tax services into a single solution primarily for small and medium-sized businesses (SMBs) in the United States. Its product simplifies complex administrative tasks such as employee onboarding, payroll processing, tax filing, benefits administration, and compliance, enabling businesses to manage their workforce and financial operations efficiently. Serving over 300,000 businesses nationwide, Gusto processes tens of billions of dollars annually and offers integrations with popular accounting and HR tools, positioning itself as a one-stop shop for SMBs’ administrative needs[1][2][3].

For an investment firm perspective, Gusto’s mission centers on automating and integrating payroll, HR, and benefits to "tame the chaos" of people management. Its investment philosophy likely focuses on scalable SaaS platforms that address critical SMB pain points in finance and HR. Key sectors include payroll technology, SaaS, compliance, and employee benefits. Gusto’s impact on the startup ecosystem is significant, as it enables startups and SMBs to streamline back-office operations, freeing resources to focus on growth and innovation[1][2].

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Origin Story

Founded in 2012 by Joshua Reeves and Edward Kim, Gusto began as ZenPayroll, addressing the widespread manual payroll processing among US businesses—about 3 million at the time. The founders, leveraging their backgrounds in technology and business, aimed to simplify payroll and related HR functions through automation. Early traction came quickly as the company expanded its services beyond payroll to include benefits and compliance, rebranding to Gusto in 2015 to reflect its broader focus. Key milestones include surpassing $100 million in payments processed by 2013 and reaching a $1 billion valuation by 2015. Since then, Gusto has evolved into a full-service platform with a valuation of $9.6 billion and annual revenues around $500 million as of 2023[1][2][3].

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Core Differentiators

• Integrated Platform: Combines payroll, benefits, HR, bookkeeping, and tax filing in one seamless system, reducing manual data entry and errors.
• Automation & Compliance: Automatically calculates and files local, state, and federal taxes, keeping up with changing regulations.
• Extensive Benefits Network: Offers access to over 3,500 health insurance plans from major providers and licensed advisors to tailor benefits.
• User Experience: Designed for ease of use with quick onboarding, intuitive interfaces, and flexible payroll features that sync with time tracking and accounting software.
• Financial Services Expansion: Includes Gusto Wallet, a digital banking platform for employees, enhancing financial wellness beyond payroll.
• Strong Integrations: Compatible with tools like Xero, QuickBooks, Clover, and TSheets, enabling smooth workflows.
• Customer Base: Trusted by over 300,000 SMBs, reflecting broad market acceptance and scalability[1][2][4].

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Role in the Broader Tech Landscape

Gusto rides the wave of digital transformation in SMB financial and HR operations, capitalizing on the shift from manual to automated, cloud-based solutions. The timing is favorable due to increasing regulatory complexity, the rise of remote work, and growing demand for integrated employee management platforms. Market forces such as the gig economy, evolving benefits expectations, and the need for real-time financial insights further drive adoption. Gusto influences the ecosystem by setting a standard for comprehensive, user-friendly payroll and HR software, encouraging innovation in embedded payroll and financial wellness products[1][2][3].

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Quick Take & Future Outlook

Looking ahead, Gusto is poised to deepen its integration of payroll with broader financial services, potentially expanding lending, financial planning, and embedded payroll offerings. Trends shaping its journey include continued SMB digitalization, increased demand for employee financial wellness tools, and regulatory changes requiring agile compliance solutions. Gusto’s influence may grow as it leverages its central role in employee paychecks to offer new financial products and data-driven insights, solidifying its position as a critical infrastructure provider for SMBs’ workforce and financial management.

This evolution ties back to Gusto’s founding mission: to simplify and unify the complex administrative tasks that SMBs face, enabling them to focus on growth and people.