On Tuesday ZenPayroll, a part of Y Combinator’s Winter 2012 class, emerged from stealth mode with its plans to tackle the [payroll services] market. The startup has raised nearly $6.1 million in seed funding from more than 15 prominent Silicon Valley investors, including Google Ventures and Salesforce.com.
Corporate payroll software has long been dominated by a few big vendors, particularlyAutomatic Data Processing, and the challengers say that as businesses become more comfortable with putting information online and handling critical tasks like signing documents in a browser, the market is ripe for change.
Their approaches are different, though. ZenPayroll, which is about a year old, is backed primarily by individuals who’ve had experience as corporate CEOs, which means “they know how difficult it is to run a back office,” said co-founder and Chief Executive Joshua Reeves.