Adley Bowden April 20, 2016
Dan Lyons’ book, Disrupted: My Misadventure in the Start-Up Bubble, doesn’t delve too deeply into the awesome funding history of HubSpot, so in order to help give readers a sense of the money behind the company, we did. Then, to provide a bit of context, we laid it against Marketo, one of the other marketing automation platforms that was (and still is) heavily competing with HubSpot.
According to the book’s summary, HubSpot was “flush with $100 million in venture capital,” and VCs were basically shooting dollar bills out of a cannon at the startup. The full story is that HubSpot raised $100 million over the course of six-plus years during six different rounds—a pretty regular cadence and normal level of funding for a company of HubSpot’s size. Marketo took a nearly identical but even faster path to both the $100 million it raised and its IPO.
As for the investors who backed HubSpot, there are a number of top names—Sequoia, Google Ventures, Matrix Partners, General Catalyst Partners and Charles River Ventures, to name a few. HubSpot was not alone in pulling in big-time investors; the marketing automation space was extremely hot given the disruption it was causing in the marketing world. Yes, Dan, we know you love that word.
Since going public, both companies have seen quite the ride in terms of stock price and overvaluation. The revaluation of SaaS companies earlier this year has hit HubSpot and Marketo hard, and the path the two companies have taken since the publishing of Disrupted is pretty interesting as well.
As for the fundamental financial aspects of the business, HubSpot has continued to focus on growth over profitability. And, with nearly 60% revenue growth during 2015, this seems like a pretty awesome strategy for the time being. HubSpot is not unique in its approach—most recent tech IPOs have been running a very similar strategy, as you can see by Marketo’s financial data.
This awesome data comes from the awesome PitchBook Platform, which will (ok, seriously now) help you better understand and make decisions in the startup world.
By the way, we’re looking for an awesome marketing automation associate to come join our demand generation book club and help us crank out awesome campaigns in Marketo.
Dan Lyons for president!!!