Comcast Ventures is Friends with Zenefits

VC Invests in Startup That's Developed Cloud-Focused HR Platform
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Comcast Ventures, the investment arm of Comcast, said it has invested in Zenefits, maker of a cloud-based human resource automation platform that recently notched a $500 million “C” round.

Comcast Ventures did not disclose the amount of the investment in Zenefits, which announced the round on May 6, noting that the funding, led by Fidelity and TPG, was raised at a post-money valuation of $4.5 billion.

Zenefits makes a cloud HR platform that automates administrative work such as compliance, payroll updates, health insurance and other employee benefits, and targets that to businesses with up to 1,000 employees. Founded in 2013, San Francisco-based Zenefits has raised $583 million so far, according to CrunchBase.

In announcing the investment in this blog post, Comcast Ventures principal Callum King noted that Zenefits already has more than 10,000 customers and “substantial recurring revenues.”

“It’s very rare to come across a company with such incredible traction in such a short time since its conception,” King wrote.

He said Comcast believes that Zenefits is operating a market that’s worth more than $30 billion, noting that there are 6 million small- and mid-sized business employer firms in the U.S. that could benefit from Zenefits’s streamlined HR processes.

Notably, delivering video, voice and broadband services to SMBs represents a big growth area for Comcast’s cable business. That unit pulled down about $1.1 billion in revenues in the first quarter, with the bulk coming way of SMBs.

“As with all of our investments at Comcast Ventures, we don’t intend to simply be passengers on this journey,” King added. “Our affiliation with Comcast/NBCUniversal affords us many unique opportunities to help our portfolio companies so we take an active role fostering partnerships.”

Other investors Zenefits investors include Insight Venture Partners, Founders Fund, Khosla Ventures, Palm Drive Ventures, Ashton Kutcher’s and Guy Oseary’s Sound Ventures, Andreessen Horowitz, and Institutional Venture Partners.