Gusto IPO: Will Gusto Stock Begin Trading Next Year?
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Explore ways to buy Gusto stock as we approach a potential IPO date. Get access to pre-IPO startups like OpenAI, Databricks, and Anthropic via the Fundrise Innovation Fund.
Table of Contents
Notable Gusto News
05/10/2024: Gusto is cash flow positive
09/14/2023: JPMorgan Chase to Partner with Gusto
06/27/2023: Gusto reaches $500M in trailing revenue
02/08/2023: Gusto lays off 5% of staff
Older news…
About Gusto
Gusto is a cloud software-as-a-service (SaaS) company that provides payroll, benefits, hiring, time management, tax, and other human resources services to U.S.-based businesses.
The easy-to-use software helps businesses manage employees and contractors, making it an all-in-one resource for growing companies.
Formerly known as ZenPayroll, Gusto launched from the Y Combinator winter batch of 2012. Its Silicon Valley network has attracted several well-known entrepreneurs, celebrities, and venture capitalists. It competes in a crowded startup space with companies like Rippling and Ramp.
Gusto was founded by Joshua Reeves and Edward Kim and is based in San Francisco. The company has a shoes-off office policy.
Here’s an excellent demo of the basic Gusto functionality:
Ownership
Gusto is a venture-backed startup, counting at least 40 venture capital firms and dozens of high-profile entrepreneurs and celebrities as investors.
Gusto has raised more than $921 million in venture capital funding. The latest round was an extended Series E completed in May 2022. The total Series E funding round is raised $230 million
Prominent venture capital investors include CapitalG, Dragoneer Investment Group, Fidelity, Franklin Templeton, GV, General Catalyst, Kleiner Perkins Caufield & Byers, Salesforce Ventures, T. Rowe Price, and Y Combinator.
Well-known individual investors include Aaron Levie (Box), Matt Mullenweg (Automattic/WordPress), Tobias Lutke (Shopify), Kevin Systrom (Instagram), Evan Williams (Twitter, Medium), Patrick Collison (Stripe), Jerry Yang (Yahoo), Sam Altman (Y Combinator), Jared Leto (Actor), and Ashton Kutcher(Actor).
Funding Rounds
| Round | Date | Est. Valuation | Raise Amount | Price |
|---|---|---|---|---|
| Series E | 05/11/22 | $9.63B | $230.00M | $ 30.40 |
| Series D | 07/23/19 | $3.80B | $200.00M | $ 13.31 |
| Series C | 07/30/18 | $2.00B | $145.15M | $ 7.41 |
| Series B2 | 07/04/16 | $1.09B | $90.00M | $ 5.02 |
| Series B | 08/24/15 | $560.00M | $60.00M | $ 2.81 |
| Series A | 02/18/14 | $140.00M | $20.00M | $ 0.77 |
| Seed Round | 12/10/12 | $31.07M | $6.07M | $ 0.23 |
| Accelerator/Incubator | 12/31/11 | $1.43M | $100.00K | $ - |
| Source: Caplight |
Valuation
The last confirmed Gusto valuation is $9.5 billion based on the Series E funding round completed in May 2022.
However, pre-IPO marketplace data provided by Hiive* suggests its valuation is closer to $4 billion as of Q1 2025.
IPO Potential
The Gusto IPO date has yet to be determined. The company has not yet filed publicly for an IPO, but Gusto could be a leading SaaS IPO candidate when market conditions improve.
With more than 100 pre-IPO investors and a robust recurring revenue model, we should expect to see news of a Gusto IPO date approaching when the IPO sentiment improves. However, its pre-IPO valuation has shrunk from its last funding round, suggesting bankers may throttle IPO ambitions until the valuation recovers.
We’ll get clues about the IPO date when we learn about the hiring of an underwriter, an S-1 filing is submitted, or reporting discloses a date range.
How to Invest in Gusto Stock
Most investors will not be able to own Gusto stock via pre-IPO investing platforms because they require the investor to be accredited.
When the Gusto IPO date arrives, it will still be difficult for most investors to acquire IPO shares.
The most likely way investors will be able to own Gusto stock is to wait for the IPO and buy shares after it goes public. There may be other opportunities to own the stock before the IPO.
Here are some potential options to own Gusto stock before, during, and after the IPO.
1. Buy Gusto Pre-IPO
Gusto stock may become available on pre-IPO investing platforms before the IPO.
This happens when employees or other early investors want to liquidate a portion of their shares before the public offering.
Investors must be accredited to be eligible to buy pre-IPO shares.
Investors can monitor pre-IPO investing platforms such as Hiive, Forge Global, EquityZen, and Linqto for share availability.
Minimum investments on these platforms range from $1,000 to $50,000 or more. It’s free to sign up for data and deal alerts.
Non-accredited investors can own pre-IPO companies via venture capital funds targeted to retail investors. Venture capital funds are a new asset class that emerged in 2022.
The Fundrise Innovation Fund is the best option for non-accredited investors as of mid 2024.
Please note: This is a testimonial in partnership with Fundrise. We earn a commission from partner links on AccessIPOs.com. All opinions are my own.
Check out our list of top pre-IPO investing platforms that may have shares available.
2. Participate in the Gusto IPO
IPO investors may find chances to invest during the initial public offering. Investors may be able to acquire shares at the IPO price before the company begins trading.
Formerly exclusive to Wall Street’s best customers, IPO access is now more attainable to retail investors.
Online brokers, including the ones listed below, give customers free access to IPOs, even with low account balances.
Brokers negotiate exclusive access to IPO shares, so the chances of getting access to specific high-demand IPOs will be limited by how many brokerage accounts you have.
TradeStation has a more established track record of accessing more than 360 IPOs and secondary offerings via its partnership with Click Markets.
Robinhood has the advantage of Silicon Valley networks and a history of getting allocations for high-profile IPOs.
Check out this list of best brokers for IPO investing to learn more about IPO access for retail investors.
3. Buy after the IPO
Though waiting for the IPO requires patience, there are advantages to waiting for the stock to become publicly traded before owning.
The IPO allows investors to review more established financials after the first quarter of trading. Pre-IPO investing has limited financials available.
IPO stock prices typically rise with high-demand companies. Valuations can become exaggerated. You can benefit if you’re in early and sell when the price overheats but suffer if prices revert to fairly valuations.
Many IPOs start with high valuations. Then the stock falls once the first and second quarterly earnings reports become available.
In 2021, both Rivian and Robinhood became high-flying IPO stocks. But six months after the IPO, both stocks were more than 80% below their price peak.
The stock price declines after the IPOs could become excellent entry points if you were not allocated IPO shares.
Avoid buying overvalued shares immediately after the IPO. Shares often fall after the IPO due to lockup expirations and quarterly earnings disappointments.
However, the most disruptive companies will be higher in a decade. Patience pays.
Frequently Asked Questions (FAQs)
Is Gusto Publicly Traded?
No. Gusto is not publicly traded.
What is the Gusto stock price?
A public Gusto stock price doesn’t trade yet. It’s a private company.
The Series E funding round completed in May 2022 priced at $30.40 per share. Pre-IPO marketplace data suggest the share price is closer to $16 per share as of Q3 2024.
What is the Gusto stock symbol?
We’ll learn what the Gusto stock symbol will be once Gusto officially files for an IPO via Form S-1 with the SEC.
We can speculate a little about what the Gusto ticker will be.
Here are some suggestions which seem likely and are available in the U.S.:
- GUST
- GSTO
Where is the Gusto IPO S-1 Filing?
No Gusto S-1 filing has been released to the public, and there is no indication of a confidential filing. The document will become available if the company submits it to the SEC and the regulatory commission approves and releases it to the public.
We’ll post a copy of the S-1 filing on this page when it becomes available.
You can monitor the most recent S-1 IPO filings on this website.
Gusto News Archive
05/12/2022: Gusto Secures Series E Round Extension
07/24/2019: Gusto Raises $200M Series D At $3.8B Valuation
07/31/2018: Gusto Raises $140 Million Series C
Conclusion
Investors get excited when they identify companies riding extraordinary macroeconomic trends. Cloud SaaS companies like Gusto and Carta get a lot of attention.
Though you may want to own the company, buying stock early on can often prove difficult for retail investors.
Pre-IPO investing platforms have opened more opportunities. But private equity investing is still primarily reserved for the ultra-wealthy, requiring millions to invest in seed and early funding rounds for disruptive companies.
So if you decide to pursue IPO shares and early equity in Gusto, maintain reasonable expectations. However, if you identify several favorite IPO companies, you may eventually be able to invest in some of your target companies.
If the Gusto IPO is on your watch list, good luck. Invest in pre-IPO and IPO companies with caution.
Read more: SaaS Startups in the IPO Pipeline
Craig Stephens is a former IT professional who left his 19-year consulting career at the IRS to be a full-time finance writer. A DIY investor since 1995, he started Access IPOs in 2016 to provide a resource for ordinary investors pursuing access to IPOs. Craig studied Finance at Michigan State University and lives in Northern Virginia with his wife and three children. Learn more about Craig.
* This is a testimonial in partnership with Fundrise, Hiive, and other affiliate partners. We earn a commission from partner links on AccessIPOs.com. All opinions are my own. If you sign up with one of our partners through certain on this website, Access IPOs will be compensated at no additional cost to the reader. See the full disclosure here. Risk Statement: Investing in IPOs and pre-IPO startups involves significant risk. Do not invest in companies based solely on what is included in this article. Only invest in IPOs and pre-IPO companies with money you can afford to lose. Access IPOs is for informational purposes only. Mentions of specific investments should not be construed as financial advice. Conduct personalized research and consider consulting with an investment advisor before investing.
