B2B Payments

Justworks Secures $40 Million For Payroll, HR Solutions

Justworks, a U.S.-based B2B FinTech, has raised $40 million in venture capital, according to TechCrunch reports on Tuesday (March 6).

The company offers an all-in-one suite of human resources solutions, including payroll and employee management. FirstMark Capital led the investment, reports said, while existing backers Redpoint Ventures, Index Ventures, Bain Capital and Thrive Capital also participated.

In an interview with the publication, Justworks Founder Issac Oates said even with new funding, he wants to take a gradual approach to growing the company.

“We’ve always taken a very measured approach in how we built the company,” he said. “What it’s done is given us enough time to understand what’s working and what’s not working and revise and try again based on that information. If you go too fast, you don’t have an opportunity to learn at the speed you need to learn.”

Justworks aims to automate and streamline multiple business operations that small businesses (SMBs) need to function. Managing multiple apps and software solutions, however, can quickly overwhelm entrepreneurs.

In 2016, Justworks announced its entrance into the small business accounting and legal services space via collaborations with accounting and tax company inDinero and online legal services marketplace LawTrades. Those partnerships, the company said at the time, added to its overall suite of SMB services.

“Together, we can offer a complete back-office solution that joins our strengths and supports all of an entrepreneur’s business needs,” said Justworks Director of Business Development Molly Siems in a statement at the time. “We understand the difficulties of managing a business and aim to offer a seamless solution, so that where the Justworks platform ends, inDinero’s and LawTrades’ capabilities begin.”



The pressure on banks to modernize their payments capabilities to support initiatives such as ISO 20022 and instant/real time payments has been exacerbated by the emergence of COVID-19 and the compelling need to quickly scale operations due to the rapid growth of contactless payments, and subsequent increase in digitization. Given this new normal, the need for agility and optimization across the payments processing value chain is imperative.