Digital marketing startup HubSpot has raised a third round of funding to the tune of $16 million, bringing the total invested in the Cambridge, MA company to a healthy $33.5 million. The round was led by Scale Venture Partners and joined by previous investors Matrix Partners and General Catalyst Partners.
According to the blog post announcing the investment, the valuation of the company went up again with this fresh round of funding.
The capital will mostly be used to increase investment in R&D in solutions that fix the ‘broken’ set of outbound marketing tools currently used by many companies, says the startup. HubSpot claims revenue growth of 350% over the last year and adds that its growth in number of customers is consistent as well:
HubSpot offers an Internet marketing application that helps businesses with their SEO strategy and lead generation and conversion efforts. The company is behind tools like Website Grader, which essentially audits websites for their search engine friendliness, and boasts similar tools specifically for Twitter and Facebook.