Total amount raised
$33.4 Millions
Latest funding date
07/01/2011
Location
PayScale has successfully raised funding through multiple rounds, with its last known funding round being a Venture - Series Unknown in 2011. The company was later acquired by Francisco Partners in 2019.
PayScale's investors include notable names such as Madrona and Fluke Venture Partners. Keep reading to explore the intricacies of PayScale's fundraising journey and the investors backing this innovative platform.
What Is PayScale?
PayScale, founded on January 1, 2002, is headquartered in Seattle, Washington. The company was established by Joe Giordano and operates within the industries of Big Data, Enterprise Software, Human Resources, SaaS, and Software.
With a workforce of 251-500 employees, PayScale provides compensation software, data, and services to employers, along with free salary information and negotiation resources for individuals. The company serves over 16,000 customers, including small businesses and Fortune 500 companies, and is recognized for its advanced compensation platform powered by big data and unique matching algorithms.
How Much Funding Has PayScale Raised?
- Amount Raised: $3.2M
- Date: October 2004
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To develop initial product offerings and establish market presence.
- Amount Raised: $7M
- Date: October 2005
- Lead Investors: Trinity Ventures
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand product development and increase market penetration.
- Amount Raised: $10.3M
- Date: July 2007
- Lead Investors: Sapphire Ventures
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To scale operations and enhance sales and marketing efforts.
- Amount Raised: $2M
- Date: January 2009
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support ongoing growth and product enhancements.
- Amount Raised: $226.9K
- Date: February 2009
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To address immediate operational needs and minor expansions.
- Amount Raised: $3.5M
- Date: December 2009
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To further develop the compensation platform and expand market reach.
- Amount Raised: $135K
- Date: July 2010
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support minor operational and development activities.
- Amount Raised: Not publicly disclosed
- Date: October 2010
- Lead Investors: Leader Ventures
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To enhance product offerings and expand market presence.
- Amount Raised: $7M
- 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 products.
Total Amount Raised: $33.36M. 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, particularly in the Pacific Northwest.
- Investment Focus Areas: Early-stage technology companies, Pacific Northwest.
- Notable Investments: Amazon, Redfin, Smartsheet.
- Fluke Venture Partners
- Details: Fluke Venture Partners is a venture capital firm that focuses on early-stage investments.
- Investment Focus Areas: Early-stage investments.
- Notable Investments: Not publicly disclosed.
- Francisco Partners
- Details: Francisco Partners is a private equity firm that specializes in investments in technology and technology-enabled businesses.
- Investment Focus Areas: Technology, technology-enabled businesses.
- Notable Investments: Not publicly disclosed.
- SAP Ventures
- Details: SAP Ventures typically invests in enterprise software, technology, and services.
- Investment Focus Areas: Enterprise software, technology, services.
- Notable Investments: LinkedIn, Box, DocuSign.
- Trinity Ventures
- Details: Trinity Ventures invests in early-stage technology companies, with a focus on SaaS, mobile, and social media.
- Investment Focus Areas: SaaS, mobile, social media.
- Notable Investments: Starbucks, New Relic, Zulily.
What's Next for PayScale?
PayScale stands at the cusp of significant growth opportunities, driven by the increasing reliance on data-driven solutions for employee compensation. With the recent $7 million funding round, the company is poised to expand its sales and marketing activities and develop new products, enhancing its flagship offering, PayScale Insight.
Future fundraising opportunities seem promising, given the involvement of prominent venture capital firms. This financial backing could pave the way for further rounds to support PayScale's growth and development. However, the company may face challenges such as competition from other HR solution providers and the need to keep up with rapid technological advancements.
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