In January we reported that digital marketing startup HubSpot was close to taking a new venture round. That deal is now closed, and the company will announce that they’ve taken $32 million from Sequoia Capital, Google Ventures, Salesforce and previous investors.
HubSpot, which is headquartered in Cambridge, Massachusetts, has raised a total of $65 million in venture capital.
The company has 4,000 customers, they say, who use HubSpot to help manage their website and generate leads. Revenue is at a $25 million run rate annually, up from $10 million a year ago, says CEO Brian Halligan.
“The way humans shop is fundamentally changing,” Halligan says, and traditional marketing approaches – PR, ad buys, etc. don’t really work. HubSpot helps businesses build blogs and engage directly with customers via social networks, and lead generation increases severalfold on average within six months, he says. HubSpot charges customers between $250/month and $1,500/month.
HubSpot eats its own dog food when it comes to marketing. They have a very active blog, and have created tools like Twitter Grader, Facebook Grader and Website Grader to help build new leads.