CHAPTER 9
ETHICAL GROWTH
The way founders must think about optimal growth rate can be examined through a tale of two companies providing businesses with cloud-based software for payroll, benefits, and human resource management. Gusto was started in 2011 by founder and CEO Joshua Reeves. My firm became an investor. Zenefits was founded in 2013 by Parker Conrad. Investors included several high-profile venture firms.
By 2015, Zenefits was getting all the attention. That spring, its valuation jumped to $4.5 billion, up from $500 million the previous year. From 2014 to 2015, it grew from $1 million in annual recurring revenue to $20 million. The company set a goal of hitting $100 million in revenue in 2016. It signed up about 10,000 small businesses ...
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