Led by T. Rowe Price, Gusto’s existing investors also joined the round, including Fidelity, Franklin Templeton, Generation and General Catalyst.
Gusto now faces the challenge of proving to the market that its new valuation is justified — and not just another symptom of a frothy investment environment that has minted more unicorn companies than ever before. Comparably-sized enterprise software companies have varying scales of revenue: Project management software firm Asana, valued by the public markets at $11 billion, is expected to generate $300 million for the 2022 fiscal year, while Figma, which is privately valued at $10 billion, was expected to reach annual recurring revenue, or ARR, of more than $150 million this year, per sources. Reeves’ wouldn’t disclose Gusto’s revenue figures but offered that the company generated “several hundred million dollars” in annual revenue, which has been growing steadily at 50% year-over-year. He also pointed to the fact that Gusto's customer base recently surpassed 200,000.