Sequoia, Google Ventures, and Salesforce.com Invest $32 Million in HubSpot

by Rebecca Corliss

Date

March 8, 2011 at 4:30 PM

Today, for the first time ever, Sequoia Capital, Google Ventures and Salesforce.com all invested together in one company, providing HubSpot with a Series D round of financing through a $32 million investment. HubSpot provides all-in-one marketing software used by over 4,000 businesses to get found by more prospects, convert them into leads and sales, and analyze the entire marketing process.

describe the image"The fundamental way that people shop, learn, and buy has changed radically in the last few years. HubSpot helps transform the way businesses market from outbound marketing (cold calls, email blasts, and direct mail) to inbound marketing (Google, blogs, social media, mobile, etc.)," said Brian Halligan, co-founder and CEO of HubSpot.

Sequoia Capital has a long history of partnering with founders to help them build long-term, multi-billion dollar companies, including Google, LinkedIn, AdMob, YouTube, Yahoo!, Apple, and Oracle. “We back companies that are transforming their industries,” said Jim Goetz, General Partner at Sequoia Capital. “HubSpot is the emerging category leader in the SaaS marketing sector. Their customer base exceeds that of all the other relevant marketing software companies combined, including Eloqua, Marketo, Genius, and Manticore.”

"Today, every company needs to succeed in search, social, sales, and marketing... With 4,000 customers, HubSpot is already a clear marketing leader - now, with this new infusion of capital and recognition by Google’s venture arm and Salesforce.com, HubSpot has a great opportunity to separate itself from the pack and become the leading marketing platform in the small and medium business space," said Brent Leary, co-founder of CRM Essentials.

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Google Ventures Partner, Rich Miner (co-founder of Android) said, “We agree with HubSpot’s belief that search engines, social media, and mobile devices have fundamentally changed how businesses should market themselves. We’re thrilled to support their efforts to help thousands of small and medium businesses reach potential customers.”

describe the imageDharmesh Shah, co-founder and CTO of HubSpot commented, "We founded the company based on a simple premise: Businesses want an easy-to-use, complete and integrated marketing platform that helps them get more leads and customers. We plan to use this new capital to further invest in this ambitious vision and further our existing lead in the marketing software category."

Details of the Financing and Executive Interviews

This $32 million financing round was a Series D financing, the fourth round of financing HubSpot has raised.  All of HubSpot’s existing venture capital investors - General Catalyst, Matrix Partners, and Scale Venture Partners - also participated in this financing round.  Part of the $32 million will provide liquidity to some existing shareholders.  Previous rounds include a $16 million Series C raised in October 2009, a $12 million Series B raised in May 2008, and a $5 million Series A raised in July 2007, for a total of $33 million previously raised.  For additional information about this investment or to set up an interview with HubSpot CEO Brian Halligan or another executive, please contact Rebecca Corliss via email at rcorliss@hubspot.com or by phone at (617) 903-0504.

About HubSpot

HubSpot, Inc. offers an all-in-one marketing software platform for small and medium sized businesses.  Over 4,000 companies in 31 countries use HubSpot software to increase the number of visitors to their website and convert more of those visitors to leads and customers.  Applications in the software platform include website management, blogging, search engine optimization, lead management, marketing analytics, email marketing, landing pages, and social media monitoring.  HubSpot is also the developer of the popular website analysis tool, WebsiteGrader.com, which has over 3 million users.  HubSpot, Inc. was founded in 2006 and is based in Cambridge, Massachusetts.