SOURCE: HubSpot, Inc.

HubSpot, Inc.

HubSpot, Inc.

October 19, 2009 08:00 ET

HubSpot Raises $16 Million in Financing for Marketing Software; Round Led by Scale Venture Partners

New Capital Will Be Used to Continue Product and Market Development

CAMBRIDGE, MA--(Marketwire - October 19, 2009) - HubSpot, Inc. today announced that it has raised $16 million in Series C financing, led by Scale Venture Partners. HubSpot will use the capital raised to continue investing in product and market development. Existing investors, General Catalyst Partners and Matrix Partners, also participated in this round. Rob Theis, Managing Director of Scale Venture Partners, has joined HubSpot's Board of Directors.

"The marketing discipline is going through massive change now as the industry comes to grips with fundamental shifts in the way people shop, learn and buy," said Brian Halligan, HubSpot CEO and founder. "We plan to use the capital we raised to continue investing in research and development to stay on top of these fast-moving waters for our customers, make our product even simpler and deliver even higher value. We are very excited to be working with Rob Theis and Scale Venture Partners on this round of financing. We have been very impressed with their depth of understanding of the economics and drivers in the SaaS industry, and we look forward to the benefits of this new relationship."

Read more of Brian's thoughts about the Series C financing round in his blog post and join him for a live press conference webcast and Q&A this afternoon at 12 p.m. EDT at http://bit.ly/SeriesC. The public can ask questions leading up to and during the live press conference by commenting on the blog post or on Twitter by including @HubSpot and hashtag #seriesc in their tweets.

HubSpot offers fully integrated Internet marketing software combining SEO, blogs, social media, landing pages, lead intelligence and marketing analytics into one system. Its software helps small-to-mid-sized companies get found online by prospects -- then convert more of those prospects into paying customers. HubSpot customers, now numbering over 1,700, have a 6x improvement in lead-flow within 6 months of buying the HubSpot software, on average.

"For more than a decade, Scale Venture Partners has led investments in leading SaaS companies that have shaken up their markets by delivering more flexible and economical solutions to address a number of business challenges," said Rob Theis, Managing Director, Scale Venture Partners. "HubSpot has developed significant momentum in the marketplace by delivering highly effective and cost-efficient Internet marketing solutions to a variety of fast-growing small-to-mid-sized businesses. I'm looking forward to working closely with Brian and his team to increase the breadth of product offerings available, and expand into new markets."

The Series C financing comes at an exciting time for HubSpot, whose founders Brian Halligan and Dharmesh Shah are releasing a new book, Inbound Marketing: Get Found Using Google, Social Media, and Blogs, available in stores today. The book is a how-to guide to inbound marketing. It shows that inbound marketing-focused businesses have a 61% lower cost per lead than traditional outbound-focused businesses. The book will teach readers how to improve rankings in Google to get more traffic, build and promote a business blog, grow and nurture a community on social networks, measure the metrics that matter and do more of what works online.

Order your copy of Inbound Marketing at http://inboundmarketing.com/book.

About Scale Venture Partners

Based in Foster City, California, the ScaleVP team is a long-standing partnership with a consistent, top quartile track record of returns. Scale Venture Partners' insight-driven investment strategy, extensive operating networks and go-to-market expertise help identify and build leading portfolio companies in technology and healthcare markets. The ScaleVP team's proven skill-set and active approach provides entrepreneurs a competitive advantage for growth and category leadership. Representative portfolio companies include Alimera Sciences, Discera, Frontbridge, Glu Mobile, mBlox, Monolithic Power Systems, National Healing, NComputing, Omniture, Orexigen, ScanSafe, Somaxon, Vantage Media, Waterfront Media, Xceive and Zogenix. For more information, visit www.scalevp.com.

About HubSpot

HubSpot, Inc. provides Internet marketing software that helps businesses get found online, generate more inbound leads and convert a higher percentage of those leads into paying customers. HubSpot's software platform includes tools that allow professional marketers and small business owners to manage search engine optimization, blogging and social media, as well as landing pages, lead intelligence and marketing analytics. Based in Cambridge, MA, HubSpot can be found at http://www.hubspot.com. HubSpot offers free marketing tools at http://www.grader.com and hosts a free marketing community at http://inboundmarketing.com.