ago 2013 02 18 area served united states ceo david o. sacks industry human resource management revenue us 20 000 000 2014 abt.us 1 000 000 2013 website www.zenefits.com zenefits is a company based in the united states that offers cloud based software as a service to companies for managing their human resources with a particular focus on helping them with health insurance coverage . 1 2 contents 1 history 2 investigations of wrongdoing 3 funding 4 valuation 5 revenue 6 praise 7 downsizing 8 see also 9 references 10 external links history edit zenefits was started by its ex ceo parker conrad and laks srini conrad s colleague and a software engineer at sigfig to help startups and small businesses find insurance quotes and manage employee benefits in one place . it officially launched on february 18 2013 . 3 in 2013 zenefits which had been operational only in california and new york announced that it was rolling out to the other 48 states in the united states albeit only for businesses with more than 20 employees . 4 in 2014 the company announced the addition of commuter spending flexible spending and 401 k support in an attempt to replace the more mundane functions currently handled by companies human resources departments . 5 the company also announced support for stock options in its cloud hr platform . 6 in november 2014 zenefits opened an office in scottsdale arizona . 7 in may 2015 payroll provider adp blocked zenefits from accessing payroll information on behalf of zenefits customers . 8 in a post on the company s blog 9 zenefits alleged adp was spreading fear uncertainty and doubt about zenefits data security due to worries about increased competition . in june 2015 adp filed a lawsuit accusing zenefits of defamation . 8 investigations of wrongdoing edit in 2016 an internal legal investigation found the company had created and used a browser extension to skirt training licensing and certification requirements around selling insurance across state lines . this revelation came amid other reports of internal misconduct and led the california department of insurance to begin its own investigation . 10 the massachusetts division of insurance launched its own similar investigation in march 2016 . 11 in february 2016 amidst the scandal parker conrad resigned as ceo and director . coo david o. sacks was named as his replacement . 12 shortly after becoming ceo sacks issued a memo to employees in which he banned the consumption of alcohol in the zenefits offices . we operate in a highly regulated industry he wrote and it s important to set the right tone in the office . the new policy helps to achieve this and communicate that we are committed to operating with integrity . 13 days later another internal memo reminded staff that smoking and having sex in the office stairwells also constituted inappropriate office behavior . 14 funding edit zenefits has been valued as high as 4.5 billion ; it has received 583 million in venture capital funding from investors such as andreessen horowitz venrock tpg i.v.p. and fidelity . 15 valuation edit on april 21 2015 techcrunch reported that zenefits was raising somewhere between 300 million and 500 million at a valuation worth of 3 billion and possibly as high as 4 billion . 16 17 on may 6 the round was reported to have closed with 500 million raised from investors including fidelity management tpg and comcast ventures at a valuation of 4.5 billion . 18 19 20 revenue edit in 2015 zenefits reported an annual revenue of approximately 20 million twenty times the corresponding figure in 2013 . 21 in june 2016 ceo david sacks reported that zenefits revenue had not decreased in spite of recent scandals and that its annual recurring revenue was more than 60 million per year . 22 praise edit in 2014 zenefits was identified as one of the fastest growing software as a service companies in history . 23 24 its revenue growth rate was compared favorably with such companies as workday and salesforce.com ; 21 forbes reported that its valuation growth was among the highest of any company in 2014 . 25 the wall street journal discussed the rapid growth in zenefits own workforce as it scales to cope with a growing clientele . 26 downsizing edit in february 2016 zenefits laid off 17 percent of its employees or 250 people and closed its arizona offices . 27 in june the company laid off another 9 percent 106 additional people and offered existing employees a two month severance package ominously named the offer . employees were given two days to decide whether to accept the offer . in a memo ceo david sacks told employees as you consider your options over the next two days please know that the company isn t making the offer because we don t want you . we do want you but we want the best of you . we want you winning core value awards . we want you prototyping a great idea at hackday . we want you staying late to help out on a project . we want you busting ass on z2 . the next few months are going to be an exciting time at zenefits and we want everyone participating in that . 28 see also edit gusto automatic data processing adp paychex aps payroll justworks references edit manjoo farhad september 21 2014 . zenefits leader is rattling an industry so why is he stressed out . new york times . retrieved january 21 2015 . lynley matthew may 1 2013 . zenefits tries to take the pain out of human resources . digits blog . dow jones & company . retrieved january 21 2015 . empson rip february 18 2013 . y combinator backed zenefits gives small businesses a one stop shop for finding and managing employee benefits . techcrunch . retrieved january 20 2015 . kumparak greg october 14 2013 . zenefits rolls its hr automation services out to all 50 states . techcrunch . retrieved january 20 2015 . empson rip january 10 2014 . fast growing zenefits adds commuter benefits flexible spending and 401 k support as it moves to take over startup hr . techcrunch . retrieved january 20 2015 . lawler ryan july 25 2014 . zenefits adds stock options to its cloud hr platform . techcrunch . retrieved january 21 2015 . cloud hr startup zenefits opens scottsdale office plans to hire 1 300 employees over next 3 years . techcrunch . november 11 2014 . retrieved january 21 2015 . a b hesseldahl arik june 10 2015 . in wake of data access dispute startup zenefits is sued by payroll company adp . re code . update to our customers on adp . re code . june 9 2015 . suddath claire ; newcomer eric 9 may 2016 . zenefits was the perfect startup . then it self disrupted . . bloomberg businessweek 9 may 2016 . retrieved 16 may 2016 . fernandes deirdre . mass . insurance regulator investigates benefits software firm . boston globe 9 mar 2016 . retrieved 16 may 2016 . solomon brian 8 feb 2016 . zenefits ceo parker conrad resigns amid scandal . forbes.com . retrieved 16 may 2016 . bort julie february 19 2016 zenefits new ceo just banned employees from drinking alcohol at the office . business insider . retrieved 6 17 2016 . kossof mya june 14 2016 months after banning sex in the stairwells zenefits lays off another 106 employees . vanity fair . retrieved 6 17 2016 . kossof mya june 14 2016 months after banning sex in the stairwells zenefits lays off another 106 employees . vanity fair . retrieved 6 17 2016 . lawler ryan ; wilhelm alex ; lynley matthew april 21 2015 . cloud hr startup zenefits is looking to raise a giant new round of funding . techcrunch . retrieved april 22 2015 . schubarth cromwell april 22 2015 . zenefits is latest private ipo in works seen seeking 300m 500m . silicon valley business journal . retrieved april 22 2015 . keohane dennis may 6 2015 . zenefits raises 500 million for its hr software and insurance hybrid beating off new customers with a stick . pandodaily . retrieved may 6 2015 . macmillan douglas may 6 2015 . zenefits is tagged with a 4.5 billion valuation after just two years . digits blog . dow jones & company . retrieved may 6 2015 . baumgartner jeff may 29 2015 . comcast ventures is friends with zenefits . multichannel news . new york city newbay media . retrieved may 29 2015 . a b zenefits financials reveal it is one of the fastest growing saas businesses ever . techcrunch . january 14 2015 . retrieved january 21 2015 . newcomer eric june 14 2016 more trouble at zenefits . bloomberg.com . retrieved 6 14 2016 . carney michael june 3 2014 . labeled the fastest growing saas company ever zenefits raises a 66m series b just five months post series a . pandodaily . retrieved january 21 2015 . wang alexander september 14 2014 . how did zenefits grow so quickly . quora crowdsourced q & a . retrieved january 21 2015 . solomon brian december 17 2014 . the hottest startups of 2014 . forbes . retrieved january 20 2015 . weber lauren december 11 2014 . how a hot startup will triple its workforce in 2015 . at work blog . dow jones & company . retrieved january 21 2015 . lynley matthew 16 february 2016 zenefits is laying off roughly 250 employees . techcrunch . retrieved 6 14 2016 . lynley matthew 16 june2016 zenefits is laying off another 106 people and offering others a buyout . techcrunch . retrieved 6 14 2016 . external links edit official website crunchbase profile angellist profile v t e y combinator companies 7 cups of tea 80 000 hours 9gag airbnb algolia buttercoin canopy labs cleartax codecademy cofactor genomics coinbase creative market cymmetria disqus dropbox easypost fullstack academy futureadvisor gigster gocardless goldbely gusto heroku hipmunk homejoy icracked instacart justin.tv kickback lendup loopt lumi meadow newsblur octopart omgpop one month optimizely ownlocal pebble podium.co product hunt quartzy reddit renthop scribd smartasset songkick standard treasury streak strikingly stripe survata swiftype true link upverter urx voat watsi webflow weebly wepay workflowy wufoo xobni zenefits zerocater category full list retrieved from https en.wikipedia.org w index.php title zenefits & oldid 733013994 categories technology companies based in the san francisco bay areay combinator companieshidden categories official website different in wikidata and wikipedia navigation menu personal tools not logged intalkcontributionscreate accountlog in namespaces article talk variants views read edit view history more search navigation main pagecontentsfeatured contentcurrent eventsrandom articledonate to wikipediawikipedia store interaction helpabout wikipediacommunity portalrecent changescontact page tools what links hererelated changesupload filespecial pagespermanent linkpage informationwikidata itemcite this page print export create a bookdownload as pdfprintable version languages add links this page was last modified on 4 august 2016 at 19 49 . text is available under the creative commons attribution sharealike license ; 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