HubSpot Nabs $35 Million To Revolutionize MarketingNovember 05, 2012
by Tom Taulli
Six years ago, while working as a venture capitalist, Brian Halligan saw that the typical playbook for sales was broken. “The approach was to have cold calls and advertisements,” he said. “But customers were finding ways to avoid the messages.”
Brian instead realized that a better approach was to leverage inbound marketing. But to make this work, there needed to be a comprehensive software platform.
So Brian quit his gig as a VC and started HubSpot. Since then, the company has grown at a hefty rate, hitting over 8,000 customers.
And to pump things up even more, Brian has pulled off a mezzanine financing round of $35 million. In all, the company has raised about $100 million. “With the capital, we plan to expand more aggressively in Europe and also to buy some companies,” said Brian.
Hubspot makes it much easier for companies to engage in social media, to leverage blogs, analyze data and engage in email marketing. “We were inspired by Apple and how Steve Jobs revolutionized the MP3 player,” Brian said. “At the time when it launched, there were 13 rivals but they had little marketshare. Apple realized that the best approach was to make a device that was simple for mere mortals.”
Brian says that the goal is to take Hubspot public, which is certainly reasonable. After all, the marketing automation space has been hot lately, as seen with recent offerings from companies like ExactTarget (NYSE:ET) and Eloqua (NASDAQ:ELOQ).