/// Exclusive: Aneel Bhusri’s Workday Raises $85 Million At A Whopping $2 Billion Valuation

October 24, 2011  |  All Things Digital

It’s beginning to look like this whole enterprise software-in-the-cloud thing might just go somewhere. For the latest evidence look no further than Workday, the fast-growing provider of human resources software as a service. Today Workday will announce that it has just raised $85 million in new financing, bringing its total amount of capital raised to $250 million. Sources familiar with the terms of the deal tell me that the investments value Workday at $2 billion. The funding round isn’t coming from traditional venture capital players, but from institutional investors who will want to be shareholders of Workday when it goes public in the second half of next year. The round, which is being described as a Series F, includes T. Rowe Price, Morgan Stanley Investment Management, Janus, and Bezos Expeditions, the personal investment entity of Amazon CEO and founder Jeff Bezos. I’m also told by sources familiar with the deal that mutual fund giant William Danoff, the manager of Fidelity’s $80 billion Contrafund, the mutual fund giant’s largest stock-based fund, has participated in this funding round. This would be the Contrafund’s third recently investment in a privately held Internet company, the other two being Facebook and Zynga. In fact it’s the same group of funds that took part in a huge round with social gaming giant Zynga in February , in Groupon in January and which earlier this year bought nearly 3 million shares of Facebook for $25 each. Previous investors include Dave Duffield and Greylock Partners, who are in for $90 million across four rounds and New Enterprise Associates who joined a $75 million Series E round in 2009. So why raise from institutionals and not VCs? Because Workday is going to go public, and probably before the end of next year,” Bhusri (pictured above) told me. “Rather than do a round that adds an overhang to the existing capital structure, this is a group of investors who will likely buy more in the IPO,” he says

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Exclusive: Aneel Bhusri’s Workday Raises $85 Million At A Whopping $2 Billion Valuation

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