The thought of managing HR, benefits and payroll is enough to make most entrepreneurs grimace. However, time consuming and frustrating as it may be, it’s a part of the job description and something every startup and small business has to address sooner or later.
Having dealt with the paperwork and administrative headaches at startups before, Parker Conrad and Laks Srini launched Zenefits last year to take the pain of HR management out of the hands of founders and move it to the cloud. Beginning with a service that sought to automate the process of setting up and managing group health coverage and payroll, Zenefits enabled small businesses to transfer administration online, for free, and removed the need to dip into hiring budgets to hire a dedicated HR person.
However, the team quickly found that the opportunity extended beyond health coverage and payroll, as many of its early customers used Zenefits not just for its initial functionality, but as a full-on replacement for traditional HRIS or Human Resources Information Systems. As Zenefits looks to expand its coverage and help startups and larger businesses manage all HR-affiliated tasks, the company is taking on $15 million in Series A financing from Andreessen Horowitz, Maverick and Venrock to go after larger, enterprise customers and to begin tackling international markets.