PayScale, a Seattle-based company that provides cloud-based compensation and benefits information to businesses and individuals, is itself receiving a handsome payment: up to $100 million from an affiliate of global equity firm Warburg Pincus.
The company said Thursday that the investment would be used to hire more people and develop new online products for enterprise human resource departments.
"This investment validates PayScale's position as the leading compensation data and software-as-a-service provider enabling businesses to attract, retain and optimize the return on their most important assets, their people," PayScale president and CEO Mike Metzger said in a news release.
Seattle's Madrona Ventures had invested in previous venture rounds for the company. "They (PayScale) are poised to disrupt a key market in human capital management, one of the hottest areas of growth in business software right now," said Matt McIlwain, Madrona's managing director, in the news release.
With information on 40 million salary profiles, PayScale says it has the largest database on individual compensation information in the world. Among its more than 3,000 enterprise subscription customers are Warby Parker, Zendesk, Clemson University and Covenant Dove. Individuals can use PayScale's information to find out current salary ranges for their professions, while businesses use the companies cloud-delivered tools and products to determine how much to pay employees. The company also provides survey information about various aspects of salaries and employment to the news media.
Warburg Pincus has a history of investments in Seattle-based companies. The private equity firm -- now with more than $37 billion in assets under management -- invested in senior living referral service A Place For Mom in 2010. Cobalt, a web design/online marketing firm targeting auto dealers, was sold by Warburg Pincus to ADP in 2010; it has first invested in the company in 2001.