San Francisco startup Zenefits announced on Wednesday that has received a $500 million investment in C round of financing, the financing by the fidelity and TPG led, valued at $4.5 billion, of Zenefits emerged as a new member of the “unicorn”, and is equivalent to four and a half “unicorn” (valued at $1).
this is Zenefits within less than a year and a half in the past the third round of financing. In January of last year, the company completed the $15 million in A round of funding, and in June last year completed A $66 million B round of funding. Zenefits B round in the valuation of more than $500 million.
Zenefits for enterprise human resources management, recruitment, compensation management, medical insurance and employee benefits, vacation time tracking, etc. — to provide cloud services free of charge. This software is free for enterprise use and Zenefits get income by service mediation. For example, when the medical insurance company via Zenefits new business, the company will extract the commission.
given Zenefits financing scale and creation time, Zenefits still amazing achievement, number of employees has been from the beginning of 2014 15) to the current 1000.
two years Zenefits revenue is expected to grow from $1 million to $1 million. In January 2014, Zenefits in regular income (SaaS enterprise important index) for $1 million. By January 2015, the income of $20 million. By January 2016, the income is expected to total $100 million. In December 2014, Zenefits of small business customers more than 2000. Today, the number has more than 10000. Zenefits staff of about 1000.
Zenefits investors also behind the luxurious. Anderson Horowitz (Andreessen Horowitz) and Institutional Venture partners (Institutional Venture Parters) first investment, in addition, the conduct of $1.2 billion takeover by Microsoft founder David sachs (David Sacks), founder of the $3 billion buyout by SAP SuccessFactors Lars DaLGaard, choose investment Zenefits and join the company.
it all with Zenefits founder and CEO, founder Conrad Parker (Parker Conrad) effort. He is 34 years old, but its rich experience, from a child prodigy to drop out of school, from testicular cancer to entrepreneurship, to be out of the door, eventually started my own company, parker Conrad’s life experience has intense significance.
here is the BI of an article published in February this year, from which the growth course of Conrad parker was introduced in detail, hunting cloud network in this text, provide the reference for the fellow entrepreneurs:
before the age of 34, parker? Conrad (Parker Conrad) life like a dream, full of ups and downs, that sounds like a movie.
as founder and CEO of Zenefits, Conrad has become a darling of silicon valley, a legendary story.
“our company was established in May 2013, to 8 months later in early 2014, our operating income (run – what revenue) to $1 million.” Conrad said.
by the end of 2014, Zenefits operation income of more than $20 million, this year’s target is $100 million.
“as far as we know, we are the fastest growing SaaS company. Salesforce and Workday is also quickly to the growth of the company, but they took four years to reach us $20 million. We has done it took less than two years. They took five or six years to reach 100 million dollars. We will use less than three years made it this far.” He said.
Zenefits has raised $83.6 million in the three rounds of financing, its investors including Andreessen Horowitz current investors lars? Dahl lagarde (Lars Dalgaard). Dahl lagarde for $3.4 billion in 2011 to set up the cloud SuccessFactors company sold to SAP.
a mad money business models
Zenefits is an online human resources management software, the company is headquartered in San Francisco. Zenefits for enterprise human resources management, recruitment, wages, benefits, vacation time tracking, etc. — to provide cloud services free of charge.
Zenefits these services are free of charge, but it is through the provision of insurance services for revenue. For example, the enterprise can use Zenefits to buy health insurance for employees. In this case, the Zenefits is an insurance broker, agent fees charged. But, the enterprise can do an Zenefits to buy insurance, the basic service is still free.
Zenefits of the meaning of the insurance industry, just as the Uber taxi industry, the reality of the meaning of the hotel industry. The insurance industry in an uproar. In Utah, Zenefits even banned by the insurance department. Utah state legislature is studying a bill that would make Zenefits in Utah to become legal.
Zenefits become hot in a short time. In December last year, one of the founders of PayPal David? Sachs (David Sacks) become Zenefits investor, and served as the chief operating officer of the company.
in 2012, saks for $1.2 billion will be his final startup or co-workers sold to Microsoft. He is also one of the world’s most successful angel investors. Sachs can not work, let alone work for someone else. But instead he became Zenefits chief operating officer, that means Zenefits appeal.
Conrad’s painful times
Conrad said, this rapid success he was “incredibly excited, really thrilling, and of course also nervous”.
when Conrad was incorporated in January 2013 Zenefits, he actually is in the life the trough.
at the time, he had just been SigFig company (formerly known as Wikinvest) fire, and he is the co-founder of the company. He was killed by SigFig another founder, and his friends play out in the university.
after, because he had failed in the performance of drop out from Harvard University, later also suffers from cancer. His life like a roller coaster adventure.
from child prodigy to harvard dropout
although Conrad smart enough, but his high school grades.
“but then I join in” Westinghouse genius “(Westinghouse Talent Search) science grand prix. I spent about two years in neuroscience lab time, finally I won the national third.”
this experience helped him into the Harvard University. He then joined The Harvard University newspaper The Crimson, and eventually became The chief editor of The newspaper.
“I would almost all of my time on The Crimson, work about 70 hours a week, I didn’t go to class for about a year.” He said.
however, I later dropped out from Harvard University. At harvard, I had to leave my Crimson editor-in-chief term is not full, really fall by The wayside. This is an incredible shame, is also a shocking experience.”
a year later, he returned to harvard, until graduation. Later, he in the headquarters is located in the southern California biotechnology company got a position in Amgen.
“I live in a very stable, the place I live is from Santa Monica (Santa Monica) the beach is only two blocks. I think I like big star of the company. At that time, my position is very low, but I feel I is on the rise, and got a lot of attention. “He said.
shortly after graduating from college, he had testicular cancer, then recovered.
live in elderly community
in one of his college roommate after give him a call, Conrad in Amgen began to get anxious and negativity. They want to create a company.
“we have an idea, is to set up a Wiki site equity research, so I left my company, to leave Los Angeles, moved to San Francisco.”
because there is no work, no money, they moved into the Walnut Creek, California (Walnut Creek) an “old age home”, one called “Rossmoor retirees community.”
he is co-founder of the grandparents in Rossmoor a spare set of apartment, so they can live for free in there.
according to regulations, the people under the age of 65 are not allowed to live there, so “furtive whenever we pass in and out.” He explains.
“we lived there for about half a year, this is by far the worst in my life half a year.”
, he admits, “it now appears that this is an interesting story. But I thought my life was like falling into the cliff. In Santa monica, my life and work is very good. Has been admitted to the elderly community, all of a sudden, I attempt to do something puzzling, faces an uncertain future, we don’t know what you’re doing.”
associate was kicked out of the company
they founded the company called Wikinvest, later renamed SigFig. In the process of entrepreneurship, they felt very tired and nervous, often face unpaid wages of the situation. There are two or three times, they want to give up.
he and co-founder mike is SigFig co-ceo. “Everyone will tell you, this is a very bad idea.” Finally, at a critical juncture, mike’s family decided to inject a large sum of money for the company, on condition that mike must become the CEO of the company only. After that, two people can’t get along. “Before long, he fired me.” Conrad said.
he said, “what’s worse, I’m still in the company after being fired linger for a year, working for the company, dealing with some deals and things. This is a very unpleasant experiences.”
and then, he is only one way.
“so when I started Zenefits, I to some extent in the life the trough. I was fired, I was abandon.”
leave SigFig of that day of, he constructed Zenefits meager capital. He is only about $20000 in savings, but his wife has a job, and so they could live on her wages.
disgust gave rise to great creative
Zenefits creative result from SigFig. SigFig at peak times and only about 30 employees, there is no specific human resource management.
once cancer survivors, he pays much attention to buy health insurance. Because he is very good in this respect, employees always ask him.
“when recruiting new staff, there are a lot of administrative work to be done.” He said. “Maybe a few hours a month to do this work, a few hours and I’m a few hours. I think, if you can connect these things using the Internet and together, they can operate on its own.”
, for example, is the only way to register for new employee insurance form by fax. He had to go to Kinko do it, because the company does not have its own fax machines.
in order to establish Zenefits, he spoke with a lot of insurance brokers and other personnel, trying to find out why they want to use this way to the paperwork. At that time, he found that they were all so make a lot of money.
he inspired, the thought of the “center of radiation (hub and spoke” business model. Zenefits provide free services, but the external service charges, such as by selling insurance.
“our business model is unique, if you can become a hub, you will be able to occupy a strong position, through to the external radiation and earn a lot of money.” He said.
the biggest lesson of failure
in less than a year, he has proved the success of this model.
founded two years later, Zenefits users increased by 16 times, 47 states in the United States more than 50000 employees more than 2000 companies to provide services.
Zenefits existing 570 staff, mostly in San Francisco. Recently, the company set up a new branch in phoenix, and employs 200 people. More importantly, Zenefits future development.
although Conrad would not disclose the company’s valuation at present, but the company’s market value should be able to quickly reach $1 billion.
Conrad learned from all this?
“the only thing I learned is that failure is bad, you always don’t want to fail. For this special lessons, I can’t say more.” He said with a smile.