How Gusto’s $10B founder raised $6M, built a team of 5—& hit $5M ARR in just 2 years. | Josh Reeves, Founder of Gusto

A Product Market Fit Show | Startup Podcast for Founders

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Gusto is a $9.5B startup that does $500M ARR. Josh built an absolute monster of a company-- and it all started with payroll software for SMBs. Not just that, he started by servicing only new tech startups that were based in California. It was exceptionally niche, and it worked.

After YC, he raised a $6M seed round from tier 1 angels, back when large seed rounds were not at all common. But, unlike others, he didn't spend the money. He kept his team small as they iterated on the product. By the time they raised their $20M Series A, they were only 10-15 people.

Here's the story of how they got started, gained initial traction, and took off.
Why you should listen:

Why starting super small can lead to massive outcomes.
Why you need a huge, no-brainer pain point to succeed.
How to use early customer interviews to deeply understand your ICP.
Why small teams allow for faster decision-making and execution.
Why deep passion about the problem set is so important.

Keywords
Gusto, Josh Reeves, entrepreneurship, startup, payroll, small business, Y Combinator, business model, innovation, technology, fundraising, startup, product-market fit, team building, customer satisfaction, growth strategy, small business, Gusto, entrepreneurship, SaaS
Send me a message to let me know what you think!

Capitole

1. How Gusto’s $10B founder raised $6M, built a team of 5—& hit $5M ARR in just 2 years. | Josh Reeves, Founder of Gusto (00:00:00)

2. The Alan Kay Quote that Stuck with Josh (00:01:57)

3. Solving the Problems of Hand Written Payroll (00:05:01)

4. Deliberately Choosing an Important Problem to Solve (00:07:03)

5. The Mindset in the Early Days (00:10:54)

6. The Status Quo of Paper Payroll (00:15:35)

7. Becoming your First Customer (00:18:39)

8. YC & Seed Round (00:23:39)

9. Keeping the Team Small (00:31:20)

10. The Minimum Lovable Product (00:34:19)

11. Staying to help Small and Big Scale Companies Alike (00:40:44)

12. Growth After Launching (00:44:17)

13. Finding Product Market Fit (00:50:43)

14. One Piece of Advice (00:53:24)

187 episoade

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