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Zenefits, a 2-Year-Old Startup, Is Now Valued at $4.5 Billion

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Following a seismic $500 million funding round a mere two years after being founded, software startup has now zoomed into the billion-dollar valuation club, clocking in at $4.5 billion.

Launched in April 2013, Zenefits offers small and medium-sized owners software to manage their HR needs, including payroll and . What differentiates the company from competitors is that it gives businesses this platform for free and instead generates revenue by collecting commissions from providers.

Zenefits' Series C round was led by Fidelity and TPG, while bold-faced investors like , Guy Oseary and -- a previous investor -- also participated.

Related: Warby Parker Joins Billion-Dollar Valuation Club After Latest $100 Million Funding Round

All told, Zenefits, which counts 1,000 total employees and says it expects to reach an annual run rate of $100 million by 2016, has raised $584 million in . Funds will be allocated towards bolstering its sales and marketing teams to build upon the 10,000 businesses Zenefits already services across 48 states, the company said.

"In my experience, the momentum that Zenefits has achieved in two years is unprecedented," said Lars Dalgaard, a general partner at , in a statement. Zenefits marks Andreessen Horowitz's biggest to date.

Zenefits was founded by tech wiz Laks Srini and the serial entrepreneur Parker Conrad, who previously founded SigFig, an online wealth management tool.

Related: Navdy, the 'Google Glass for Your Car,' Raises $20 Million

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