August 10 & 11
There are a ton of startups out there and, after a while, you start to notice that a lot of successful startups procure services from other successful startups. For instance, Gusto is an all-in-one people platform for payroll, benefits and human resources. Gusto seems to be the go-to payroll provider of choice across Silicon Valley; indeed, approximately three weeks ago, it raised a $200mm Series D financing round that will, no doubt, help power it even more. Here’s coverage of the venture raise by Techcrunch:
Every employee loves receiving their paycheck. It just so happens, though, that paying employees can be a royal pain, what with incredibly diverse labor laws across all 50 U.S. states. While large, Fortune 500 employers have a bevy of options, from traditional firms like ADP to newer entrants like Workday, small and medium businesses (SMBs) face the brunt of the challenge — too small to be attractive to the biggest players, but still responsible for following the complexity of U.S. labor law.
Gusto was founded to solve that problem for SMBs, and so far, it has seen strong adoption. The company crossed the 100,000 customer barrier in the past year, out of an estimated six million small businesses in the United States.
Note zero mention — like, not even close — of IOIPay, a company with a terrible name and an even terribler website that provides all visitors of a nostalgic glimpse back at the early days of Internet 0.50 circa 1994. The Indiana-based company and six affiliates filed for bankruptcy over the weekend giving us all a reprieve from oil and gas and retail bankruptcies. Small victories! The company specializes in employer outsourcing services — a growing market with increasing competition. This includes payroll processing, tax filing, direct deposit services and a whole slate of other services that are increasingly becoming commoditized in the age of Gusto, Square Inc. ($SQ), and other larger and better known competitors. The company cites debts between $10mm-50mm (KeyBank NA is a lender) and 5-10k creditors.
The filing is devoid of detail as we write this and so we’ll update our readers once we know more. Paul Hastings LLP and Jacobson Hile Kight LLC are counsel. Huron Consulting Group is the debtors’ financial advisor (and CRO). Drivetrain Advisors LLC has one of its folks on the board of directors. The debtors filed in the Northern District of Indiana.
Jurisdiction: Northern District of Indiana (Judge Gargula)
Legal: Paul Hastings LLP (Matt Murphy, Nathan Gimpel, Michael Whalen) & Jacobson Hile Kight LLC (Andrew Kight, Michael Hile, Christine Jacobson)
Board of Directors: Drivetrain Advisors LLC (Timothy Daileader)
Financial Advisor/CRO: Daniel Wikel
Claims Agent: Prime Clerk LLC (*click on the link above for free docket access)
Other Parties in Interest: