Total amount raised
$33.4 Million
Latest funding date
07/01/2011
Location
PayScale has successfully raised funding over 9 rounds, with the latest being a Venture - Series Unknown round. The company is backed by 8 investors, including notable names like Madrona, Fluke Venture Partners, and Sapphire Ventures.
PayScale's platform offers compensation software, data, and services to employers, along with free salary information and negotiation resources to individuals. Keep reading to explore the intricacies of PayScale's fundraising journey and the investors backing this innovative platform.
What Is PayScale?
PayScale, based in Seattle, Washington, operates in the fields of big data, enterprise software, human resources, SaaS, and software. The company provides compensation software, data, and services to employers, along with free salary information and negotiation resources to individuals.
Founded as a private entity, PayScale has grown to employ between 501 and 1000 people. The company has been acquired by Francisco Partners and has raised funding through nine rounds. PayScale's products, such as Payfactors, Marketpay, and Paycycle, are designed to help organizations make informed pay decisions and manage compensation workflows.
How Much Funding Has PayScale Raised?
- Series A
- Amount Raised: USD 3,200,000
- Date: October 2004
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To develop and launch their initial compensation software products.
- Series B
- Amount Raised: USD 7,000,000
- Date: October 2005
- Lead Investors: Trinity Ventures
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand their market reach and enhance product offerings.
- Series C
- Amount Raised: USD 10,300,000
- Date: July 2007
- Lead Investors: Sapphire Ventures
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To scale operations and invest in new technology development.
- Series Unknown
- Amount Raised: USD 2,024,470
- Date: January 2009
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support ongoing business operations and product improvements.
- Series Unknown
- Amount Raised: USD 226,909
- Date: February 2009
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To continue expanding their compensation data services.
- Series Unknown
- Amount Raised: USD 3,500,099
- Date: December 2009
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To enhance their data analytics capabilities.
- Series Unknown
- Amount Raised: USD 135,000
- Date: July 2010
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support minor operational costs and product updates.
- Series Unknown
- Amount Raised: Not publicly disclosed
- Date: October 2010
- Lead Investors: Leader Ventures
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To further expand their market presence and product offerings.
- Series Unknown
- Amount Raised: USD 7,000,000
- Date: July 2011
- Lead Investors: Sapphire Ventures
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand sales and marketing activities and develop new products.
Total Amount Raised: USD 33,386,478. Current Valuation: Not publicly disclosed.
Key Investors
- Madrona Venture Group
- Details: Madrona Venture Group is a venture capital firm that invests in early-stage technology companies. They have been involved in multiple funding rounds for PayScale.
- Investment Focus Areas: Technology, Enterprise Software, SaaS
- Notable Investments: Amazon, Smartsheet, Redfin
- Fluke Venture Partners
- Details: Fluke Venture Partners is a venture capital firm that participated in the recent funding rounds for PayScale. They focus on investing in innovative companies.
- Investment Focus Areas: Technology, Healthcare, Consumer Products
- Notable Investments: Not publicly disclosed
- Sapphire Ventures
- Details: Sapphire Ventures is a venture capital firm that led the latest funding round for PayScale. They invest in growth-stage companies.
- Investment Focus Areas: Technology, Enterprise Software, SaaS
- Notable Investments: LinkedIn, Box, Square
- Trinity Ventures
- Details: Trinity Ventures is a venture capital firm that invests in early-stage and growth-stage companies. They participated in the Series B funding round for PayScale.
- Investment Focus Areas: Technology, Consumer Services, Enterprise Software
- Notable Investments: Starbucks, New Relic, Zulily
- Leader Ventures
- Details: Leader Ventures is a venture capital firm that participated in the Series Unknown funding round for PayScale in October 2010. They focus on providing growth capital to innovative companies.
- Investment Focus Areas: Technology, Healthcare, Financial Services
- Notable Investments: Not publicly disclosed
What's Next for PayScale?
PayScale is poised to capitalize on the growing reliance on data-driven solutions for employee compensation. With a recent $7 million funding round, the company is set to expand its sales and marketing activities and develop new products. This significant financial boost underscores the vast opportunities available for PayScale to enhance its market presence and product offerings.
Future fundraising opportunities seem promising, given the successful track record of attracting investment. As PayScale continues to demonstrate growth and effective utilization of funds, it is likely to draw further interest from venture capital firms. However, the company must navigate challenges such as competition from other HR solution providers and the need for continuous innovation to maintain its market edge.
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