Internet marketing start-up HubSpot Inc. said it has raised $32 million from Google Ventures, Sequoia Capital and Salesforce.com Inc. (NYSE:CRM) in its fourth round of funding. To date, the five-year old company has raised $65 million.
Founded in 2006, the Cambridge, Massachusetts-based company's marketing software helps to generate more qualified traffic to a website, capture more visitors as qualified leads, convert more leads into paying customers as well as analyze and optimize every step of the process.
The company's marketing software platform includes tools that allows small and medium sized businessed to manage search engine optimization, blogging and social media, landing pages and e-mail marketing.
The fundamental way that people shop, learn, and buy has changed radically in the last few years, says Brian Halligan, co-founder and CEO of HubSpot. 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.).
This $32 million financing round was a Series D financing. General Catalyst, Matrix Partners, and Scale Venture Partners - all of HubSpot’s existing venture capital investors - also participated in the latest fundraising round.
General Catalyst provided $5 million in 2007, and Matrix Partners invested $12 million in 2008. Scale Venture Partners provided $16 million in 2009.
“We agree with HubSpot’s belief that search engines, social media, and mobile devices have fundamentally changed how businesses should market themselves, says Google Ventures Partner, Rich Miner (co-founder of Android). We’re thrilled to support their efforts to help thousands of small and medium businesses reach potential customers.
Jim Goetz, General Partner at Sequoia Capital says 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.