“Justworks reinvented the PEO model by delivering an experience people love,” said Isaac Oates, Founder, and CEO of Justworks. “The modern workforce expects simplicity and seamlessness in the tools they use and technology that empowers them to do things by themselves. By combining SaaS flexibility, transparent pricing, and off-the-shelf functionality with 24/7 expert support for customers and their teams, Justworks provides an unmatched PEO offering for the modern business. This new investment will help us to strengthen these advantages and double down on our growth as the expectations of an increasingly millennial workforce continue to drive ever more B2B buying decisions.”
The PEO model has been around for decades, allowing legacy players to grow into multibillion-dollar companies, in part, due to its solid customer value proposition and favorable business dynamics. The need for handling critical tasks related to payroll, employment-related taxes, HR and health insurance continues to grow—taking today’s entrepreneurs away from what really matters: building their business and focusing on their customers and team.
“Justworks has raised the bar on what people can expect from a PEO,” said Fred Wilson, partner at Union Square Ventures. “Their software is elegant, intuitive and easy-to-use, and Justworks’ technology and operating model allows them to serve small and medium-sized businesses better than anyone else in the market. This has led to rapid growth and, more importantly, the creation of a category-defining offering that drives levels of customer retention and satisfaction that are simply unheard of in the HR services space. We are pleased to welcome Justworks to our portfolio and to be their partner in creating a fundamentally better PEO product for the modern workforce.”
“We are driven to help entrepreneurs and businesses grow with confidence,” said Oates. “Our success depends on making that a more accessible option for all, and our own ability to stay true to the things that have made Justworks special from the beginning—obsessing over our customers, delivering experiences that people love and an aspiration to create a company for the ages. We are thrilled to be starting a new relationship with Union Square Ventures and are proud of our continuing strong relationships with current partners.”