Nearly three years after its roll-out, HubSpot Ventures has announced the launch of a new $100 million fund. The company’s CRM Platform Fund will be used to invest in growth and early-stage tech companies. In addition, tech companies that are primarily focused on customer-first are likely to be in the pole position to receive the funding.
HubSpot Venture’s mission
Andrew Lindsay, Senior Vice President, Corporate and Business Development said that that the company’s vision is to aid the growth of organizations by helping them forge strong relationships with their customers. He further added that the company sees this as an investment opportunity and will also allow HubSpot to offer better service to its customers.
The company is not at the forefront of investments but is a participant along with other popular investment companies such as Coatue, Sequoia Capital, and Andreesen Horowitz.
Lindsay said that one of the most unique parts of an investment is offering value that is not available anywhere else on HubSpot’s platform.
HubSpot Ventures is a corporate venture capital division for CRM platform HubSpot. Over the past three years, the company has invested in tech companies that also use HubSpot. Currently, the company is looking to invest in around 121,000 companies of different sizes that use its CRM platform.
Journey so far
The latest fund is announced almost three years after it launched a $30 million fund in 2018. The fund was aimed at offering educational and financial resources to startups. Further, the company also announced that it will use $20 million for social impact investments. The first funding was used to invest in Local Initiatives Support Corporation’s Black Economic Development Fund.
In 2021, HubSpot has already made 12 investments in booming startups such as Reachdesk, QuotaPath, Descript, and Clari. The company has made 25 investments before the latest fund, and the trend is expected to continue according to Lindsay.
Digital transformation boosts CRM adoption
CRM companies have witnessed steady growth over the past couple of years. The arrival of the pandemic along with an increasing focus on digital transformation are the key driving factors. HubSpot is among the many other CRM vendors who have made the most of this trend. The firm is generating a revenue of around $5 for every dollar invested. Lindsay said that he expects the growth to accelerate, especially as the CRM market has an impressive year-on-year growth.