July SMB Software Venture Deals
Each month, we look at funding activity for startups serving the SMB space. See last month’s post here. To learn more about SurePath’s SMB software focus and our SMB Software Thesis, send us a message at info@surepathcapital.com.
The pace of venture deals ramped up in July, with ~$990M invested across 53 completed deals, compared to ~$450M invested across 41 completed deals in June.
Largest Deals
San Francisco-based Gusto, provider of a cloud-based payroll, benefits and human resource management platform, raised $140M in the largest financing round of the month in a deal led by Dragoneer Investment Group, Y Combinator and T. Rowe Price. The new investment values the company at ~$2B, double its valuation from three years ago and according to Co-Founder and CEO Josh Reeves, Gusto’s timing for an IPO is likely within the next three-to-five years. The company plans on using the new capital to build significant additions to its all-in-one payroll, benefits and HR technology platform.
At SurePath Capital Partners we help startups raise the capital needed to become market leaders. When the time is right, we help our clients achieve profitable, deliberate exit strategies. We only work with startups in the SaaS, e-commerce, and marketplace segments. Across those segments we have a deep focus on companies serving the global SMB market.
As we continue to track SMB software raises, we will provide updates every month and every year, SurePath publishes a report on the State of SMB Software. Be sure to subscribe to our mailing list to stay in the loop.
Say hello: info@surepathcapital.com
