Zenefits Valued at $4.5bn

Zenefits, a two year-old cloud software startup that helps small companies manage employee benefits, has been added to Triton Research’s IPO Watchlist after raising $500m at an implied valuation of $4.5bn.

The deal is the largest funding event for a cloud software company since Workday went public in 2012 and brings Zenefits’ total capital raised to +$581m.  Fidelity Management and TPG led the round, and were joined by Andreessen Horowitz, Insight Venture Partners, Founders Fund, Khosla Ventures, and Sound Ventures, Institutional Venture Partners (IVP), and the actor Jared Leto.

Zenefits is a member of the Triton Research IPO Watchlist, a continuously updating database of companies we expect to either IPO or be acquired.  The current IPO Watchlist is comprised of 104 companies organized by investment theme.