Gusto raises $140M, nearly doubling its valuation to $2B
HR and payroll automation company Gusto nabbed an impressive $140 million in fresh funding this week, taking the cake for largest funding of the month. The injection of capital nearly doubles the company’s valuation from three years ago to $2 billion and ignites conversations around its seemingly inevitable IPO. CEO and co-founder Josh Reeves told Bloomberg that an IPO could happen in the next three to five years. In the meantime, Gusto plans to continue growing its Denver footprint and building out its HR payroll and benefits platforms for small and medium businesses. [Built In Colorado]
On the heels of $100M funding, ezCater acquires French foodtech startup
On Friday, corporate catering startup ezCater announced its acquisition of Paris, France-based GoCater, which delivers a similar business catering marketplace for roughly 200 partner companies in France and Germany. The news comes hot on the heels of the company’s $100 million Series D, which closed in June with the help of Wellington Management Company LLP, ICONIQ Capital, Insight Venture Partners and others. At the time of the funding announcement, ezCater said it planned to use the capital to expand into international markets. Though the financial details of the acquisition were not disclosed, ezCater CEO Stefania Mallett told WBUR that the company has enough remaining funding to potentially acquire several other firms. [Built In Boston]
Blockchain and cryptocurrency startup Radar Relay secures $10 million Series A funding
Denver-based Radar Relay broke the news on Wednesday that it had raised a $10 million Series A. The startup leverages blockchain technology to enable the trade of Ethereum cryptocurrency tokens directly from one user’s wallet to another — without the need for a token exchange or middleman. Its lead investor Blockchain Capital also spearheaded the company’s $3 million seed round in November. The Series A also saw contributions from Reciprocal Ventures, Tusk Ventures, Collaborative Fund, Distributed Global and several others. The round will help the company double its 29-person team in the coming years as well as support international community ambassadors and strategic marketing on the ground. [Built In Colorado]
Xero acquires Toronto-based Hubdoc
Small business accounting software company Xero acquired Hubdoc this week. The Toronto-based tech company helps accountants, bookkeepers and small businesses capture their data and streamline administrative processes such as financial document collection and data entry. The two companies have a had a strong relationship since integrating their platforms in 2014. Hubdoc will continue to operate as a separate entity, while the companies partner closely to deepen integrations between their products. [Press release]
