HubSpot announced today the launch of HubSpot Ventures, a $30 million fund that aims to bolster and expand the impact of startups focused not just on growing bigger, but on growing better. Through the venture fund, HubSpot will seek out companies that take the long-view on success by putting their customers first, investing in an inclusive company culture, and delivering highly differentiated products.
“We’re not looking for quick wins with this fund,” said Andrew Lindsay, VP of Corporate and Business Development at HubSpot. “Yes, we’re investing in companies that we believe will lead to a positive return on investment, but more than just that, we’re investing in companies that are committed to our philosophy of growing better.”
The investment criteria reflect HubSpot’s belief that the strongest companies today achieve success by staying laser focused on serving their customers. The fund will support companies that are dedicated to building long-term customer relationships instead of optimizing for quarterly numbers or other short-term goals. Portfolio companies must, among other criteria:
Align with our mission to help millions of organizations grow better
Have potential to deliver unique value to the HubSpot community
Be building a leading SaaS-based product
Embody the values in HubSpot’s Customer Code and Culture Code
Be raising a Seed, Series A, or Series B round with a notable lead investor
“The best businesses today focus not just on growing bigger, but growing better - by putting customers first. Growth that sacrifices the customer experience isn’t really growth – it’s debt,” said Dharmesh Shah, co-founder and CTO of HubSpot. “With HubSpot Ventures, we’re seeking out startups that are aligned with our mission to help millions of organizations grow better and add value to the ecosystem of companies benefiting from the HubSpot platform.”
In evaluating companies for investment, HubSpot Ventures will prioritize early stage companies raising funding for a seed, Series A, or Series B round. Investments in later stage rounds, such as Series C and later, will be limited. After the organization receives an initial investment, HubSpot Ventures will also act as a mentor. The portfolio company will be provided with personalized assessments and coaching from HubSpot experts to give them the tools they need to continue to grow better.