Three years after its launch, HubSpot Ventures is back with a $100 million fund, its CRM Platform Fund that will invest in early- and growth-stage technology companies focused on customers-first, business-to-business innovation for scaling organizations.
“Our mission is to help organizations better grow through relationships, access to customers, and customer service,” Andrew Lindsay, senior vice president of corporate and business development at HubSpot, told Nerdshala. “We have an opportunity to invest in HubSpot to help us better serve customers in them.”
He said the corporate venture capital firm, for customer relationship management platform HubSpot, invests in companies that are also HubSpot customers and has more than 121,000 companies of all sizes and stages using its software in which it wants to invest. .
The latest fund follows a $30 million fund that the firm launched in 2018 aimed at providing startups with financial and educational resources for growth. In 2020, the company also pledged $20 million for social impact investments, with its first funding going to the Local Initiatives Support Corporation’s Black Economic Development Fund.
It also partnered with Howard University and donated to build the university’s first digital business center, where students can receive academic and vocational training to help launch careers in business and technology.
This year HubSpot made 12 investments in fast-growing startups like Clari, Descript, ReachDesk and KotaPath. It made a total of 25 investments through the former fund, and Lindsay expects to continue at the same pace with the new fund.
Clari CEO Andy Byrne said in a written statement, “Both HubSpot and Clari work to align teams to drive revenue growth – HubSpot through its powerful CRM platform, and Clari through our purpose-built revenue operations. through the stage.” “It is natural to have the support of a company that shares our commitment to helping customers realize their full potential by transforming their revenue operations. We are excited about what the future holds as we work together to drive revenue operating in every business. “
The firm does not typically lead investment, but participates with top investors such as Andreessen Horowitz, Sequoia Capital and Coteau.
“As a company, we have a strong understanding of how we work with customers,” Lindsey said. One of the unique aspects of investing is not available anywhere else on HubSpot’s platform, such as providing insights on how to grow their business, marketing, sales, revenue and operations. Furthermore, not only are the invested companies HubSpot customers, the company in turn is their customer, meaning they have the expertise to provide advice and support development, he said.
Lindsay is seeing accelerated growth among CRM companies driven by digital transformation, and HubSpot has been a beneficiary. For every dollar invested, the firm is seeing $5 of the revenue generated by the ecosystem. He expects that to grow even faster, especially given the figures showing Global CRM Industry It is poised to become a $43.5 billion market by 2024.
“Enterprise can be a force multiplier for that growth,” he said. “We are a platform that customers love to work with and it is easy to partner with. Not all companies are the same. Companies often have to choose their investors, and they are choosing us based on culture and attitude.”