Gusto (ZenPayroll, Inc.)
Company History
Gusto History: Founding, Growth & Key Milestones
Founded 2011 in San Francisco, California
When was Gusto founded?
Gusto was founded in 2011 in San Francisco, California by Joshua Reeves, Tomer London and Edward Kim, making it 15 years old.
- Founded
- 2011
- Founding place
- San Francisco, California
- Founders
- Joshua Reeves, Tomer London and Edward Kim
- Headquarters today
- San Francisco, California, United States
- Milestones documented
- 9 (2011–2026)
- Current CEO
- Joshua Reeves
- Acquisitions
- 4
| Year | Event |
|---|---|
| 2011 | ZenPayroll Founded & Y Combinator (W12) |
| 2012 | Public Launch & $6.1M Seed from Silicon Valley Royalty |
| 2014 | $60M Series B at $560M Valuation Led by Google Capital |
| 2015 | Rebrands to Gusto & Launches Health Benefits Brokerage |
| 2018 | $140M Series C at $1.6B Valuation & Denver Campus Launch |
| 2019 | $200M Series D at $3.8B Valuation Led by Fidelity |
| 2021 | $175M Series E and First Acquisitions |
| 2025 | Tender Offer at $9.3B and Guideline Deal |
| 2026 | Surpasses $1B in Revenue |
- Where was Gusto founded?
- Gusto was founded in San Francisco, California in 2011.
- Who founded Gusto?
- Gusto was founded by Joshua Reeves, Tomer London and Edward Kim.
- When did Gusto start?
- Gusto was founded in 2011.
- How old is Gusto?
- Gusto is 15 years old as of 2026.
Founding Story
Josh Reeves, Tomer London and Edward Kim started ZenPayroll in 2011 after experiencing how manual and paper-heavy payroll was for small companies, including in Reeves's own earlier startup. They went through Y Combinator, launched publicly in 2012 and spent the early years building tax filing coverage state by state before rebranding as Gusto in 2015 and adding benefits.
Founders
Joshua Reeves
Josh Reeves co-founded ZenPayroll, now Gusto, in 2011 and has been CEO ever since. He led the 2015 rebrand and expansion into benefits, the 2021 Series E, the 2025 Guideline acquisition and the company's growth past $1 billion in revenue in early 2026. He is known for a values-driven culture, including Gusto's shoes-off office tradition, and has said he spends little time thinking about an IPO. (Exact birth year remains publicly undisclosed).
Tomer London
Tomer London co-founded Gusto (then ZenPayroll) in 2011. While studying at Stanford, he met his co-founders and realized that the software used to pay employees at small businesses was incredibly archaic and painful to use. As Chief Product Officer, he designed the highly intuitive, delightfully simple user interface that allowed Gusto to completely disrupt legacy giants like ADP. (Exact birth year remains publicly undisclosed).
Edward Kim
Edward Kim co-founded Gusto in 2011. Before Gusto, he had developed a highly successful photo-sharing app, but struggled immensely with the complexity of running a real business and paying employees. As Chief Technology Officer, he architected Gusto's highly complex backend, ensuring it could perfectly calculate incredibly convoluted state and federal tax codes without error. (Exact birth year remains publicly undisclosed).
Key Milestones
ZenPayroll Founded & Y Combinator (W12)
Joshua Reeves, Tomer London, and Edward Kim founded ZenPayroll in Palo Alto, joining Y Combinator.
Source: en.wikipedia.orgPublic Launch & $6.1M Seed from Silicon Valley Royalty
Launched cloud payroll, raising $6.1M backed by the CEOs of Yelp, Dropbox, Yammer, and Box.
Source: en.wikipedia.org$60M Series B at $560M Valuation Led by Google Capital
Raised $60 million led by CapitalG, expanding automated payroll across all 50 US states.
Source: en.wikipedia.orgRebrands to Gusto & Launches Health Benefits Brokerage
Rebranded from ZenPayroll to Gusto, launching health insurance brokerage and workers' comp.
Source: en.wikipedia.org$140M Series C at $1.6B Valuation & Denver Campus Launch
Achieved unicorn status led by T. Rowe Price, opening a large regional operating campus in Denver.
Source: en.wikipedia.org$200M Series D at $3.8B Valuation Led by Fidelity
Raised $200 million, crossing 100,000 small business customers across America.
Source: en.wikipedia.org$175M Series E and First Acquisitions
Raised a $175M Series E at about $9.5B and acquired Ardius, Symmetry and RemoteTeam.
Source: gusto.comTender Offer at $9.3B and Guideline Deal
June tender offer led by Ontario Teachers'; August agreement to acquire Guideline.
Source: cnbc.comSurpasses $1B in Revenue
Gusto said trailing twelve-month revenue passed $1B, with growth accelerating five straight quarters.
Source: techcrunch.comMajor Acquisitions
Ardius
2021Los Angeles startup automating R&D tax credit claims; Gusto's first acquisition (June 2021).
Symmetry
2021Arizona-based payroll tax calculation software company (July 2021).
RemoteTeam
2021HR and payroll tools for remote and international teams (October 2021).
Guideline
2025401(k) provider with about 65,000 business customers, 1 million+ savers, $20B in assets and ~$140M ARR; announced August 27, 2025.
Keep researching Gusto
Gusto Company History FAQ
What are the major historical milestones in the evolution of Gusto since 2011?
Founded as ZenPayroll (2011), Y Combinator and public launch (2012), rebrand to Gusto and health benefits (2015), Series E and three acquisitions (2021), $9.3B tender offer and Guideline acquisition (2025), and $1B+ trailing revenue (2026).
How did ZenPayroll transform small business payroll upon its public launch in 2012?
ZenPayroll eliminated manual paper tax forms, hidden fees, and complex software installations by introducing 100% paperless cloud payroll, automated direct deposits, transparent flat-rate pricing, and automatic electronic tax payments to local, state, and federal agencies.
What was the historic impact of launching full-service health benefits in 2015?
In 2015, Gusto became the first modern cloud payroll company to operate as a licensed health insurance broker, allowing small businesses with fewer than 20 employees to easily browse, select, and administer comprehensive health, dental, and vision insurance alongside payroll.
How did Gusto support over 100,000 small businesses during the 2020 economic lockdown?
During the COVID-19 pandemic, Gusto rapidly deployed free emergency COVID-19 resource centers, automated PPP loan application and forgiveness calculators, and flexible pay features, enabling small business owners to secure vital federal funding and retain millions of workers.
How did the launch of Gusto Embedded in 2021 transform vertical SaaS platforms?
In 2021, Gusto introduced Gusto Embedded, allowing vertical software platforms (field service management, salon software, construction apps) to embed customizable payroll and tax filing directly into their applications, creating a new multi-billion-dollar distribution channel.
What is Gusto's ultimate mission for the future of small business and entrepreneurship?
Gusto's ultimate mission is to create a world where work empowers a better life, providing small business owners and their teams with the tools, financial security, and confidence needed to build thriving, sustainable, and fulfilling workplaces.
How did Gusto start?
Gusto (originally named ZenPayroll) was founded in 2011 by Joshua Reeves, Tomer London, and Edward Kim. Edward's family ran a small medical clinic and was constantly struggling with incredibly archaic, clunky payroll software. Realizing that companies like ADP had terrible user interfaces for small businesses, they built a beautiful, cloud-native alternative.
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