On Tuesday, Dharmesh Shah, CTO, and co-founder of HubSpot announced Hubspot Ventures to fund startups. On his Linkedin Pulse article, he mentioned that the company is introducing a new venture with $30 million to fund small businesses. He also noted that both the founders had the idea of taking this step since the beginning of the organization’s 12 years back. HubSpot Venture was introduced by the company with the aim to help customer-centric startup and companies seeking financial help in their early stage.
The $30 million venture fund will focus on the companies with the vision of building a long-term customer relationship. “In our early years of growth, we had the idea to start a HubSpot venture fund. Rather than making purely “strategic” investments, we’d also make philosophical investments. We’d support companies that shared our core philosophy that the way for organizations to grow better in the modern world is to take a more human, empathetic approach to marketing, sales and service.”, Shah wrote on Linkedin.
According to Shah, Hubspot Venture will not invest in the companies for ‘short-term wins’ rather it will go for the startups sharing its own philosophy. He added, the company will help only those startups following the client-first approach. Importantly, Hubspot Ventures will provide the funding for the SaaS-based startups. Moreover, prospective companies should follow the companies eligibility criteria including
Already raised a Seed, Series A, or Series B funding
Explicitly dealing with building SaaS product
Contributing to the HubSpot community
Strongly shares the Hubspot’s customer code and culture code
“We think there’s a big market opportunity out there for companies who serve SMBs, and this space has received disproportionately lower investment historically than companies focusing on large, enterprise customers,” added Shah.
Besides, the portfolio companies will also receive help and guidance from HubSpot leadership team.