HubSpot Ventures Announces a $100 Million Fund, Will Invest in B2B Software Startups

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. 

SEE ALSO: Etherium Blockchain Firm ConsenSys to Reach $3 Billion Valuation after Latest Fundraising Deal

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. 

SEE ALSO: Freshworks IPO: Salesforce Rival Freshworks Files for IPO in the U.S.

Feature Image Source: Image by 3D Animation Production Company from Pixabay 

Karandeep V

Karandeep was born in Pune, Maharashtra, an upcoming metropolitan city in the Western region of India. While most members of his family are engineers, he had different ideas. He was more inclined toward exploring the non-technical aspects of a business, which is why he studied Bachelors of Business Administration at Symbiosis International University, Pune.  Having said that, his love for new and upcoming technologies remained intact, which is why he has written extensively about technology throughout his career. After a brief stint with a gaming company at the beginning of his career, he discovered that his love for writing was not temporary.  Being a tech geek, he always liked installing and playing around with new applications on his mobile devices and the home desktop. He was fascinated by how technology can simplify even the most mundane and complex tasks with just a few commands. He keeps a close eye on how businesses use different tools to streamline their operations to boost productivity and efficiency.  At ToolsMetric, he writes product reviews that cover the main features and specifications of different enterprise applications. The sheer amount of innovation and hard work that goes into building these tech solutions is one of the reasons why Karandeep loves reviewing these tools. Besides product reviews, he also writes interesting news articles and blogs that track the latest developments in the tech industry.  When he is not writing, you can find him rooted to his seat playing video games, watching movies, or supporting his favorite football team. Since his childhood, he has always loved to travel and explore new places. Traveling is a major part of his life due to a myriad of reasons such as experiencing new cultures, food, and traditions. His other hobbies include playing football, cooking, and running.  You can find him on LinkedIn here.

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