HubSpot announces fund for 'customer first' startups
HubSpot is pouring US$30 million (NZ$40 million) into a new fund to support startups that demonstrate ‘customer first’ approach of not only growing bigger, but growing better.
The venture fund will allow HubSpot to help companies take the long view on success, customer-centrism, an inclusive company culture, and highly differentiated products. The fund also focuses on customer relationships rather than other goals such as optimisation for quarterly figures or other short term goals.
According to HubSpot VP of corporate and business development Andrew Lindsay, the venture fund is not about ‘quick wins’.
“Yes, we’re investing in companies that we believe will lead to a positive return on investment, but more than just that, we’re investing in companies that are committed to our philosophy of growing better," says Lindsay.
Businesses must also: • Align with HubSpot’s mission to help millions of organisations grow better • Have potential to deliver unique value to the HubSpot community • Be building a leading SaaS-based product • Embody the values in HubSpot’s Customer Code and Culture Code • Be raising a Seed, Series A, or Series B round with a notable lead investor.
HubSpot co-founder and CTO Dharmesh Shah adds that the best businesses today focus on growing better by putting customers first.
“We’re seeking out startups that are aligned with our mission to help millions of organisations grow better and add value to the ecosystem of companies benefiting from the HubSpot platform.”
HubSpot adds that it will prioritise early stage startups that are raising funds for Series A or Series B rounds.
“Investments in later stage rounds, such as Series C and later, will be limited. After the organisation receives an initial investment, HubSpot Ventures will also act as a mentor. The portfolio company will be provided with personalised assessments and coaching from HubSpot experts to give them the tools they need to continue to grow better.”
This week HubSpot was named a December 2018 Gartner Peer Insights Chustomers’ Choice for CRM Lead Management.
"Recognition that comes directly from customer feedback is my favourite kind and we are honored to once again be named a Customers' Choice for CRM Lead Management," says HubSpot CEO, Brian Halligan.
"HubSpot is shifting from a suite of applications to a platform company, and our free CRM sits at the heart of that platform. It powers our Marketing Hub, Sales Hub, and Service Hub, allowing our customers to deliver a unified customer experience."
This is the second time in 2018 that HubSpot has been named in a Gartner Peer Insights Customers’ Choice report, after also being named in May.
For the distinction as a Gartner Peer Insights Customers' Choice, a vendor must have a minimum of 50 published reviews with an average overall rating of 4.2 stars or higher. As of this announcement, HubSpot has 1,251 verified peer reviews, with an overall rating of 4.4 stars.