Who Owns Five9 Company?

Five9 Bundle

Get Full Bundle:

	5 FORCES	$15	$10
	BCG	$15	$10
	CANVAS	$15	$10
	4P's MIX	$15	$10
	PESTLE	$15	$10
	SWOT	$15	$10

TOTAL:

ADD TO CART

Who owns Five9?

Understanding Five9's ownership is key to grasping its strategic path and accountability. A significant moment was Zoom's attempted $14.7 billion acquisition in July 2021, which ultimately did not proceed, allowing Five9 to remain independent.

Founded in 2001, Five9 has grown into a leader in cloud contact center solutions. The company reported revenues of $1.04 billion for the fiscal year ending December 31, 2024, and employs over 3,000 people worldwide.

The ownership of Five9 is multifaceted, involving its founders, early investors, and a broad base of public shareholders. Examining this structure provides insight into the company's governance and future direction, including its Five9 PESTEL Analysis.

Five9, Inc. was founded in 2001 with the aim of revolutionizing call centers using cloud technology. The company's establishment involved key figures such as Gus Laredo, Wendell Black, David Van Everen, and Brian Silverman, alongside others like Andrew Veliath, James Southworth, John Kim, and Ray Soto. Gus Laredo, a notable co-founder, brought prior entrepreneurial experience to the venture.

Founders' Vision

The founders of Five9 shared a unified vision to transition traditional call centers to cloud-based solutions. This forward-thinking approach was central to the company's early development.

Initial Capitalization

The initial capital for Five9 was primarily sourced from the founders themselves. This early commitment underscored their belief in the cloud contact center model.

Venture Capital Support

Significant early financial backing was provided by prominent venture capital firms. These investments were crucial for the company's growth and expansion.

Funding Milestones

The company secured its first funding round on April 28, 2004. Prior to its public offering, Five9 had successfully raised a total of $84.1 million across eight distinct funding rounds.

Founders' Equity

While specific equity percentages held by founders at the company's inception are not publicly detailed, their collective drive was focused on cloud innovation.

Entrepreneurial Roots

Gus Laredo, a key co-founder, brought a background rich in entrepreneurial endeavors to the formation of Five9. This experience was instrumental in navigating the early stages of the company.

The early ownership of Five9 was characterized by the significant contributions of its founders, who injected personal capital to launch the business. This initial self-funding demonstrated a strong conviction in their cloud-based contact center vision. As the company progressed, it attracted substantial investment from venture capital firms, including Adams Street Partners, Mosaic Capital Partners, and Hummer Winblad Venture Partners, which played a vital role in its trajectory. The company's journey to becoming a public entity involved multiple funding rounds, culminating in a total of $84.1 million raised before its initial public offering, a testament to the growing investor confidence in its innovative model. Understanding the Marketing Strategy of Five9 can provide further insight into its early growth and market penetration.

Key Aspects of Early Five9 Ownership

The foundational period of Five9 saw ownership primarily vested in its founders, who were deeply committed to the company's mission. This was complemented by crucial financial injections from established venture capital entities, enabling significant expansion and development.

• Founders' personal investment was the initial capital source.
• Key venture capital firms provided early-stage funding.
• The company raised $84.1 million before its public listing.
• The focus was on transforming call centers with cloud technology.

Five9 SWOT Analysis

• Complete SWOT Breakdown
• Fully Customizable
• Editable in Excel & Word
• Professional Formatting
• Investor-Ready Format

GET TEMPLATE ➔

Five9, Inc. became a publicly traded entity on April 4, 2014, with an Initial Public Offering (IPO) that priced 10 million shares at $7 each, establishing an initial valuation of approximately $322.3 million. This transition marked a significant step in its ownership evolution, moving from private to public hands and setting the stage for its current shareholder landscape.

The ownership structure of Five9 is predominantly held by institutional investors and hedge funds, which collectively owned approximately 96.64% of the company's stock as of August 22, 2025. This high level of institutional ownership indicates significant confidence from large financial entities in the company's performance and future prospects. While institutional ownership figures can sometimes exceed 100% due to factors like short selling, data from May 2025 showed this at 109.13%, with mutual funds alone holding around 72.74%. Individual insider holdings have seen a slight increase, moving from 1.88% to 1.96% by May 2025. Mitchell Kertzman stands out as a significant individual shareholder, holding 8.47 million shares, which represented 10.96% of the company in 2025. A pivotal event that underscored Five9's independent public status was the failed acquisition attempt by Zoom in July 2021, a deal valued at $14.7 billion, which ultimately prevented a substantial shift in its corporate control and ownership.

Key Five9 Shareholders

Understanding who owns Five9 is crucial for assessing its stability and strategic direction. The majority of Five9 stock is held by large financial institutions.

• Institutional investors and hedge funds own a significant majority of Five9's stock.
• The Vanguard Group, Inc. is one of the largest institutional shareholders.
• FMR LLC and BlackRock, Inc. are also among the major investors.
• Individual shareholders like Mitchell Kertzman hold substantial stakes.
• The company's public trading status began with its IPO in 2014.

Five9 PESTLE Analysis

• Covers All 6 PESTLE Categories
• No Research Needed – Save Hours of Work
• Built by Experts, Trusted by Consultants
• Instant Download, Ready to Use
• 100% Editable, Fully Customizable

GET TEMPLATE ➔

The governance of Five9, Inc. is overseen by its Board of Directors, who are instrumental in shaping the company's strategic direction and ensuring robust corporate oversight. As of May 21, 2025, key directors including Susan Barsamian, Jonathan Mariner, and David Welsh were re-elected, with David Welsh also holding the position of Lead Independent Director. The board also comprises Michael Burkland (CEO & transitioning to Executive Chairman), Robert Zollars, Michael Burdiek, Julie Iskow, and Maria Walker. The board's composition was expanded with the appointment of Sagar Gupta as a Class III Director on December 8, 2024, following a cooperation agreement with Anson Funds, bringing the total number of directors to ten. Mr. Gupta's tenure is contingent upon Anson Funds maintaining an aggregate ownership exceeding 700,000 shares.

Five9's voting power generally follows a one-share-one-vote principle for most shareholder matters. However, the company's classified board structure and supermajority vote requirements mean that significant corporate actions, such as amendments to the company's bylaws or certificate of incorporation, necessitate approval from at least 66 2/3% of its outstanding stock. This framework is designed to prevent hostile takeovers and promote long-term stability by encouraging board-level negotiations. Special shareholder meetings can be convened by the Chairman of the Board, the Chief Executive Officer, or a majority board resolution. Importantly, there are no provisions for cumulative voting in director elections.

Understanding Five9's Governance and Shareholder Influence

Five9's ownership structure and board dynamics are key to understanding its corporate direction. The company's voting power is largely based on a one-share-one-vote system, but certain critical decisions require a supermajority, specifically 66 2/3% of outstanding stock.

• The board composition includes both long-standing members and recent appointments, reflecting strategic adjustments.
• Supermajority voting requirements are in place for fundamental corporate changes.
• Shareholder meetings can be called by senior leadership or the board itself.
• There are no cumulative voting rights for director elections, impacting how shareholders can influence board representation.
• Understanding these elements is crucial for grasping Five9 ownership and who owns Five9.

Five9 Business Model Canvas

• Complete 9-Block Business Model Canvas
• Effortlessly Communicate Your Business Strategy
• Investor-Ready BMC Format
• 100% Editable and Customizable
• Clear and Structured Layout

GET TEMPLATE ➔

In recent years, Five9 has navigated significant leadership changes and evolving ownership trends. The company is currently in the process of selecting a new CEO to succeed Mike Burkland, who is set to transition to Executive Chairman of the Board. This leadership evolution coincides with strategic acquisitions and adjustments to its workforce, reflecting a dynamic approach to market positioning and operational efficiency.

The ownership landscape for Five9 shows a strong institutional presence, with over 96% of the company held by institutions as of August 2025. This high level of institutional ownership is indicative of broader market trends where large investment funds play a dominant role in public companies. The company's strategic direction is also being shaped by key appointments, such as Sagar Gupta joining the Board of Directors in December 2024, representing Anson Funds. This move underscores the growing influence of activist investors and strategic partnerships in guiding corporate governance and future strategy. The company's focus on artificial intelligence, demonstrated by the launch of its Five9 Genius AI Suite in August 2024 and a refreshed brand identity in February 2025, positions it within a rapidly evolving industry. This emphasis on AI innovation is a critical factor influencing future ownership and valuation, especially as the company navigates a Competitors Landscape of Five9.

Leadership Transition and AI Focus

Five9 is undergoing a significant leadership change with the upcoming retirement of its CEO. The search for a successor prioritizes candidates with expertise in artificial intelligence, a key growth area for the company.

Strategic Acquisitions and Workforce Adjustments

The company acquired Acqueon in August 2024 to enhance its contact center solutions. Recent workforce reductions, totaling 7% in August 2024 and 4% in May 2025, aim to streamline operations and improve efficiency.

Investor Influence and Market Trends

Institutional ownership of Five9 exceeds 96% as of August 2025, reflecting a broader market trend. The appointment of Sagar Gupta to the Board highlights the increasing impact of strategic investors on corporate governance.

AI Integration and Future Outlook

Five9's commitment to AI is evident in its product launches and brand evolution. Analysts project positive momentum, with upward revisions to earnings expectations in February 2025, underscoring the company's strategic direction.

Five9 Porter's Five Forces Analysis

• Covers All 5 Competitive Forces in Detail
• Structured for Consultants, Students, and Founders
• 100% Editable in Microsoft Word & Excel
• Instant Digital Download – Use Immediately
• Compatible with Mac & PC – Fully Unlocked

GET TEMPLATE ➔