Three founders launched HR software unicorn Gusto – then their moms hit it off

But I’d argue these stories begin far earlier, with who those people were long before they met each other. Gusto cofounders Josh Reeves, Edward Kim, and Tomer London started the company together 12 years ago, and as the company has grown, an unexpected subsidiary has formed—the three cofounders’ mothers have grown incredibly close and become a crew in their own right.

With Mother’s Day approaching, the tale of these three cofounder moms seemed too good to pass up. I asked the company something unusual: Could I sit down and chat with the moms and their sons? The next thing I knew I was sitting outside of the Disney Museum in San Francisco’s Presidio, chatting with this multigenerational group of friends and cofounders (one of the moms, Irit London, was in Israel, so she joined via Zoom) for a story published on Fortune’s site today that I hope you’ll read.

The Gusto moms first met in 2014 when London was getting married in Israel. It was the first time the cofounders’ entire families had spent time together. And over three days touring Israel crammed together in a bus, the moms hit it off. Since then, Sheena, Irit, and Eliana have gone on trips together that they tell me about with utter joy—jaunts to the Spanish island Tenerife and to Disneyland. 

“We can really talk about anything and feel very accepted,” Irit says. 

“I feel so grateful to just be here, be with you guys,” Eliana chimes in. “It’s just such a beautiful feeling.”

Yes, I’m aware that this all seems very cute. But the primary thing that’s cute here is this: This is, in fact, a group of loving moms who also love each other, who actually dance (wearing pink) to ABBA’s “Dancing Queen” together.

But lest you think such sentimentality means Gusto is not a serious business, consider that the HR and payroll software company generated north of $500 million in revenue in its 2023 fiscal year, and as Fortune can exclusively confirm, has been cash flow positive for multiple quarters in a row. 

Gusto also has some very competitive, results-oriented investors, including General Catalyst, Fidelity, T Rowe Price, Franklin Templeton, and Dragoneer. After its latest funding round in May 2022, the company was valued at $9.5 billion. 

In the complicated payroll business, known for its deluge of regulations and problems, Gusto has also proven itself to be a survivor, outlasting competitors formed around the same time.

It’s not easy to quantify how much of Gusto’s resilience ties back to the founders’ attitudes about honoring values and to the influence and support of smart, loving moms—perhaps that’s why such aspects are overlooked in the metrics-obsessed startup world. But if you look closely at some of the underlying themes that have contributed to Gusto’s success, it’s there. 

Because who we were is who we are. And no one knows who you are better than your mom. Read the whole story here.

Happy Mother’s Day,

Allie Garfinkle
Twitter: @agarfinks
Email: alexandra.garfinkle@fortune.com
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Joe Abrams curated the deals section of today’s newsletter.

Correction: The email version of this listed the Crunchbase date of January 2023 for the company’s latest funding round. It is May 2022.

VENTURE DEALS

- Bluejay Therapeutics, a San Mateo, Calif.-based developer of treatments for viral and liver diseases, raised $182 million in Series C funding. Frazier Life Sciences and an undisclosed life sciences investor led the round and were joined by RA Capital Management, T. Rowe Price, and others. 

- Voyage Foods, a Oakland, Calif.-based manufacturer of cocoa-free chocolate, bean-free coffee, and more, raised $52 million in funding. Level One Fund and Horizon Ventures led the round and was joined by SOSV, Collaborative Fund, and Nimble Partners. 

- Xona, a Burlingame, Calif.-based company developing a network of small satellites to provide high-precision navigation services, raised $19 million in Series A funding. Future Ventures and Seraphim Space led the round and was joined by NGP Capital, Industrious Ventures, Murata Electronics, Space Capital, and Aloniq. 

- CoverTree, a Detroit, Mich.-based provider of insurance for manufactured homes, raised $13 million Series A funding. Portage led the round and was joined by AV8, Distributed Ventures, Detroit Venture Partners, Ludlow Ventures, Annox Capital, and others. 

- Yellow, a Palo Alto, Calif.-based AI-powered platform designed to be capable of developing 3D character meshes from a single line of text, raised $5 million in seed funding from a16z. 

- Roam, a New York City-based platform designed to connect homebuyers with assumable, low-rate mortgages, raised $3 million in seed funding. Keith Rabois and Founders Fund led the round and were joined by others. 

PRIVATE EQUITY

- Bain Capital acquired a minority stake in Sikich, a Chicago, Ill.-based professional services company, for $250 million. 

- Blackstone and Vista Equity Partners acquired Energy Exemplar, a North Adelaide, Australia-based provider of energy market simulation software. Financial terms were not disclosed.

- EnviroServe, a portfolio company of One Rock Capital Partners, acquired CG Environmental, a Fort Worth, Texas-based environmental and industrial services provider. Financial terms were not disclosed.

- Freepik, backed by Atwater Capital, EQT, and Eurazeo, acquired Magnific, a Murcia, Spain-based AI-powered image upscaler, enhancer, and transformer tool. Financial terms were not disclosed.

OTHER

- AITi Tiedemann (NASDAQ: ALTI) acquired Envoi, a Minneapolis, Minn.-based family office. Financial terms were not disclosed. 

IPOS

- Proficient Auto Logistics, a Jacksonville, Fla.-based provider of auto transportation and logistics services, raised $215 million in an offering of 14.3 million shares priced at $15. 

- Silvaco Group, a Santa Clara, Calif.-based developer of software designed to reduce time-to-market, and development and manufacturing costs for semiconductor and photonics companies, raised $114 million in an offering of 6 million shares priced at $19.

FUNDS + FUNDS OF FUNDS

- Investcorp, a Manama, Bahrain-based private equity firm, raised $570 million for their fifth fund focused on B2B companies in the software, data/analytics, cybersecurity and fintech spaces. 

PEOPLE

- Bain Capital, a Boston, Mass.-based private equity firm, hired Angelo Rufino as a partner and head of special situations in North America and head of corporate special situations in Europe. Formerly, he was with Brookfield Asset Management.

- ICONIQ Growth, a San Francisco, Calif.-based venture capital firm, hired Alex Gorsky as a general partner. Formerly, he served as chairman and CEO of Johnson & Johnson.