Zenefits valued at $4.5 billion after $500 million funding round

Zenefits, which provides companies with free online tools to manage benefits for their staff, raised $500 million in funds at a valuation of $4.5 billion, reported Bloomberg. The company noted that the round, led by Fidelity Management & Research Company and TPG, is the largest financing for a software-as-a-service business since 2012. So far, the startup has signed up nearly 10,000 small- and medium-sized customers but needs new financing to hire its growing staff. The company last raised funds in June, totaling $66.5 million at a valuation of $500 million. As of January, Zenefits' annual recurring revenue was at $20 million, up from $1 million in 2014. Article