How Gusto Built A $9.5 Billion Company By Identifying A Burning Problem In Depth podcast

Content provided by First Round. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by First Round or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://podcastplayer.com/legal.

In Depth »
How Gusto built a $9.5 billion company by identifying a burning problem

14d ago 55:01

MP3•Episode home

Tomer London is the co-founder and Chief Product Officer at Gusto, the payroll and people platform used by over 400,000 businesses. He grew up helping run his dad’s clothing store in Israel — an experience that sparked his mission to build better tools for small business owners. After moving to the US for a PhD at Stanford, he met his co-founders and started Gusto.

In today’s episode, we discuss:

Reinventing payroll without any prior experience
Why you should hire for humility, not just talent
Gusto’s scrappy customer research: cold calling from a walk-in closet
Why founders should embrace customer rejection
Why “emotional urgency” matters more than polite feedback
The weekly co-founder ritual that built trust
How Gusto expanded from payroll to a multi-product platform
Building products customers actually love
And so much more

Referenced:

Where to find Tomer:

Where to find Brett:

Where to find First Round Capital:

Timestamps:

(00:00) How a childhood around SMBs shaped Tomer’s founder mindset

(03:24) The three things that led to the creation of Gusto

(07:17) Hiring for humility, not just talent

(09:28) The tug-of-war test for product-market fit

(11:58) Why founders should actively seek rejection

(15:34) Gusto’s scrappy customer research: cold calling from a walk-in closet

(17:45) Betting on SMBs – and ignoring investor advice

(20:44) “It’s not an MVP, it’s something that wows people”

(24:09) Serving SMBs vs. startups

(28:36) How to find the right co-founders

(31:09) The weekly co-founder ritual that built trust

(35:02) Reinventing payroll without any prior experience

(38:49) Gusto’s “start small” GTM playbook

(42:16) The big opportunity Gusto wishes they tackled sooner

(43:58) How switching costs became Gusto’s moat

(47:25) The two lucky breaks that gave Gusto an edge

(51:56) What Tomer learned about customers from his dad’s clothing store

152 episodes

#MBA #Entrepreneur #Business #Round