From the Wires
HubSpot Raises $35 Million Mezzanine Round from Public Market Investment Firms; Reports Aggressive Growth and Operating 'As if Public'
By: PR Newswire
Nov. 5, 2012 12:01 AM
CAMBRIDGE, Mass., Nov. 5, 2012 /PRNewswire/ -- All-in-one inbound marketing software firm HubSpot announced a $35 million mezzanine financing round today with substantial new investment from several sources including a large, unnamed institutional investor, Altimeter Capital, Cross Creek Capital, and previous investors. This fundraising marks $100 million in total financing for HubSpot, and the proceeds will be used to fund further growth in the company through hiring, international expansion, and acquisitions. http://www.hubspot.com/mezzanine
"Our goal has always been to build a successful, enduring, independent company that transforms how the world does marketing. 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. "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."
"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."
Since its founding in 2006, HubSpot has received $100 million in investment from General Catalyst, Matrix Partners, Scale Venture Partners, Sequoia Capital, Google Ventures, Salesforce.com, Charles River Ventures, Altimeter Capital, Cross Creek Capital, and others. In the past six months, HubSpot's growth has continued to expand dramatically, warranting this additional mezzanine investment. HubSpot recently launched an entirely new product - HubSpot 3, announced a new European headquarters, and hosted over 2,800 marketing professionals to its annual INBOUND conference. HubSpot also added 100 net new jobs in the past year, bringing the total employee count to more than 400, and plans to add 55 more by year's end.
The new investors in the mezzanine round also invest in many publicly traded companies, and HubSpot is implementing processes to operate "as if public" in terms of staffing and internal procedures. At the time of the financing, HubSpot also announced that Ron GiIl, CFO of NetSuite (NYSE: N) was appointed to its board of directors as chair of the audit committee. In addition to Gill, new key players at HubSpot include John Kelleher (formerly of Endeca) as General Counsel, and Chris McLellan (formerly of State Street) as Chief Security Officer.
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