How did PayCycle position itself around Intuit?
JH: I don’t think they had to position themselves around Intuit in the early days because it was about household payroll, and that was not a market Intuit was going after. SM: Does PayCycle still have the household payroll business? JH: Yes, as a matter of fact we still have it and I am a user. I pay our housekeeper with it. SM: How many customers do you have using it? JH: About 2,000. It is not the majority of the business. Most of our business is small business. SM: Somebody actually funded this Nanny Payroll idea? JH: August Capital. SM: Are you serious? JH: I think the Nanny Payroll idea was funded by some Angels, and it was refunded after the model was polished. The first around of institutional funding was in late 2000 by August Capital. One of the things that was pretty impressive about this was that Rene is a pretty compelling guy, and he did a good job raising money at a very difficult time. He raised his first round in December 2000 and the second round was October 2002. He w
