If you haven't yet taken notice of HubSpot, now's the time to do it. The company announced today that it has secured a $32 million Series D funding round from a powerful grouping of investors -- Sequoia Capital, Google Ventures and Salesforce.com.This $32 million round almost surpasses the $33 million the company raised in three earlier funding rounds. Previous investors General Catalyst, Matrix Partners and Scale Venture Partners also participated in this round.
HubSpot's solutions promise small-to-medium brands a software offering that aids with lead generation, lead conversion and driving web traffic. The message sent by these three large investors, who have been at the forefront of technologies that shape the web, is that HubSpot's solution is one with much promise.
“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..."
In a blog post, HubSpot co-founder and CEO Brian Halligan said that the company plans to invest much of this round into R&D, with the potential to include technology acquisitions. To get to this point, Halligan credits his vision, shared with co-founder Dharmesh Shah, that has reshaped the way companies address marketing endeavors, and helps them focus on buying and information consumption patterns of their customers. HubSpot is on the forefront of what it calls "inbound marketing" that leverages both search-optimized web content and applications, among other resources -- the opposite of the smile-and-dial cold calls of marketing past.
"It's a go big or go home world," Halligan said. " If you look at these new industries that form, the number one player of the market typically takes 80-90 percent of the market. We see an opportunity to be that company."
HubSpot's previous funding 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.