Public Market Investment Firms Invest $35 Million in HubSpot Mezzanine Round

    by Laura @Pistachio Fitton

    Date

    November 5, 2012 at 7:00 AM

    A number of large institutional investors, including Altimeter Capital, Cross Creek Capital, another firm with a hell of a track record, have invested $35 million in HubSpot in a mezzanine round. You can read coverage of this news on Fortune/CNNMoneyAllThingsD, TechCrunchPandoDaily, Boston.com, The Boston HeraldBoston Business Journal and elsewhere.

    That’s more than $100 million invested in HubSpot’s transformative all-in-one marketing software since our 2006 launch. To tell the story of this round, let’s glance at recent achievements and then talk about our plans for investing this money into our mission to make marketing something that people love.
    $60 Million annualized revenue run rate

    Results That Speak for Themselves 

    “We're generating revenue at an annualized run rate of $60 million, up more than 80% over last year, and we still see a huge market opportunity ahead of us,” said HubSpot CEO and co-founder Brian Halligan.”

    "HubSpot empowers our customers to do inbound marketing right, by attracting leads using extraordinary content and then converting them using highly personalized context,” said Dharmesh Shah, CTO and co-founder.  “HubSpot customers have generated more than 56 million leads since we founded the company, which is what happens when you create marketing people love.”

    Marketing People Love

    It may sound like soft stuff, but we’re not - at all - kidding about that love part. Watch this quick clip to better understand:

    Growing by Leaps and INBOUNDs More than 8,000 Customers In November 2012

    HubSpot is now more than 400 employees, up 100 from a year ago, with 55 new hires expected before 2012 ends. We serve more than 8,000 customers in 56 countries. We expect to recognize $52 million in 2012 revenues and we’re now running at a $60 million annualized revenue rate.

    In August we had the biggest software launch in our history with HubSpot 3

    ...which launched at our first annual INBOUND conference in front of 2,800 marketing professionals gathered in Boston. Watch the launch and the entire founders’ keynote below, and join us next August 19-22 for INBOUND 13.

    Inbounders Abroad

    We’re all very excited about our first-ever expansion: a European Headquarters set to open in Dublin, Ireland in January 2013. We already serve 600 international customers and 100 partners in 56 countries, and expect significant international growth with the new office, affectionately known as #DubSpot.

    Marketing: Now It’s Personal.

    HubSpot Product Marketer Meghan Keany Anderson shows how incredibly personalized and trackable your marketing could be with HubSpot:

    As if Public

    In case you’re wondering, yes. It’s significant that our new investors are institutions that invest in many publicly traded companies. HubSpot is implementing processes to operate “as if public” throughout our internal procedures and staffing. Adding former Akamai CFO JD Sherman as our COO last spring was just a start. Since then, we’ve quietly added NetSuite CFO Ron GiIl as audit committee chair on our board of directors, John Kelleher (formerly Endeca) to serve as General Counsel, and most recently, Chris McLellan (formerly State Street) as our Chief Security Officer.

    We’re Hitting the Gas

    We took on this investment for one simple reason: to grow. We’ve arrived at a scalable, reliable fast-growing model that works and that serves tens of thousands of marketing professionals at our 8,000 customers. Now it’s time to hit the gas even harder by hiring more of the world’s top inbound marketing and software talent, opening up to accelerating demand from global markets, and acquiring some of the most promising marketing software startups and talent in the world.

    "Our goal has always been to build a successful, enduring, independent company that transforms how the world does marketing,” said Halligan. “This financing sets us up for big investments in hiring and acquisitions so that we can continue to change the way the world does marketing."

    Now, It’s Your Turn

    Think the world has too much crappy marketing? Believe that marketing people love is the path of truth and justice? Welcome aboard, we couldn’t agree more. Join us right now: Grade yourself to make your marketing better; get a job at HubSpot; check out our software; explore our partner programs or tell us who you think we should acquire.

    About HubSpot

    HubSpot is on a mission to replace the world’s annoying, interruptive marketing with inbound marketing that people love. HubSpot software is the most powerful, tightly integrated and comprehensive marketing software available, putting personalized inbound marketing into the hands of any business.  Over 8,000 companies in 56 countries use our software to create lovable inbound marketing to attract, nurture and convert leads into an accelerating stream of new customers and revenue.  HubSpot has been named one of the most promising, fastest growing companies by Inc, Forbes and Deloitte for the best possible reason: customer results. HubSpot has 400 employees, was founded in 2006 and is based in Cambridge, MA. For the love of marketing, find us at http://www.HubSpot.com.