Digital marketing startup HubSpot has raised a third round of funding to the tune of $16 million, bringing the total invested in the Cambridge, MA company to a healthy $33.5 million. The round was led by Scale Venture Partners and joined by previous investors Matrix Partners and General Catalyst Partners.
According to the blog post announcing the investment, the valuation of the company went up again with this fresh round of funding.
The capital will mostly be used to increase investment in R&D in solutions that fix the ‘broken’ set of outbound marketing tools currently used by many companies, says the startup. HubSpot claims revenue growth of 350% over the last year and adds that its growth in number of customers is consistent as well:
HubSpot offers an Internet marketing application that helps businesses with their SEO strategy and lead generation and conversion efforts. The company is behind tools like Website Grader, which essentially audits websites for their search engine friendliness, and boasts similar tools specifically for Twitter and Facebook.
Met Brian Halligan at MIT as we did a short study on his startup for a class!
Really smart guy and great salesman!
Congratulations!
Congratulation HubSpot, keep up the great work.
Sweet market to be in. I’ve worked with some small companies that have paid a small fortune for SEO outsourcing and PPC management. Unfortunately most small companies expect immediate results online for SEO and are shocked by PPC costs.
The space is getting crowded and who ever has the money and the user base would get a headstart. Good job guys!!
I love Hubspot, but don’t use it.
While I’m not revealing that just yet (we have a multi-parter on Hubsppot in the works). But the statement is completely accurate; these guys have an amazing service that is PERFECT if you’re a particular type of user. Since I’m not that user, I don’t use Hubspot.
However, if you ARE that user, I can’t recommend these guys highly enough.
That said: a company with 80 employees and only a few million dollars in revenue having this kind of valuation scares the heck out of me. What’s the cash-in plan for the investors? IPO? It had better be; nothing else will work.
Jeff Yablon
President & CEO
Congratulation HubSpot!!!!
Really like there webinars. Good luck to them.
Wish the sold some of their product individually.
Congratulations to all our friends at HubSpot. Great news and we expect to see more great things from you in the future.
Great team and I love the product. They also do a terrific job of practicing what they preach – great content to drive sales. Best of luck to them!
Interesting. SEOMoz mentioned it’s also making the rounds on Sand Hill Road, so the SEO tools market is finally getting some real investment (and no Efficient Frontier doesn’t count because they don’t help you get “earned traffic” like SEO tools vendors do).
The only question is whether mainstream Internet marketers are SEO-savvy enough yet for these companies to drive enough revenue to support their valuations.
Lets take a look at their exciting technology and evaluate the lead horse:
Your online interactions are erratic and rare; there is a good chance you are still using dial-up.
You are an extremely positive person, but we are extremely positive that you need to cease your use of emoticons.
The system has determined that your reach score is deplorably low. To improve this score, try making a commitment to the network of your choice and engaging other users in more conversations.
http://personal...chael+arrington
FYI: That particular app was an April Fool’s joke and is out there for amusement value only.
hubspot is nothing but SEO spam
it will crash and burn like everything else in the bubble
Good job guys, contrats to the team!
Maybe they can take some of that money and fix their SEO analysis algorithm. It’s flawed.
I love HubSpot and what they’re doing, I’ve had a guest post at their blog and have their T-shirt and stuff, really cool people over there!