HubSpot has launched a $30 million venture fund, HubSpot Ventures to support customer-first startups.
The company said the fund was created to bolster and expand the impact of startups focused “not just on growing bigger, but on growing better”.
HubSpot will seek out companies that take the long-view on success by putting their customers first, investing in an inclusive company culture and delivering highly differentiated products.
Andrew Lindsay, VP of corporate and business development at HubSpot said, “We’re not looking for quick wins with this fund.
“We’re investing in companies that we believe will lead to a positive return on investment, but more than just that, we’re investing in companies that are committed to our philosophy of growing better.”
HubSpot said the fund will support companies that are dedicated to building long-term customer relationships instead of optimising for quarterly numbers or other short-term goals.
The portfolio companies must, align with the co-mission to help millions of organisations grow better; have potential to deliver unique value to the HubSpot community, be building a leading SaaS-based product; embody the values in HubSpot’s customer code and culture code; and be raising a seed, series A, or series B round with a notable lead investor.
Dharmesh Shah, co-founder and CTO of HubSpot said, “The best businesses today focus not just on growing bigger, but growing better – by putting customers first. Growth that sacrifices the customer experience isn’t really growth – it’s debt.
“With HubSpot Ventures, we’re seeking out startups that are aligned with our mission to help millions of organisations grow better and add value to the ecosystem of companies benefiting from the HubSpot platform.”
In evaluating companies for investment, HubSpot Ventures will prioritise early stage companies raising funding for a seed, series A, or series B round. Investments in later stage rounds, such as series C and later, will be limited.
After the organisation receives an initial investment, HubSpot Ventures will also act as a mentor. The portfolio company will be provided with personalised assessments and coaching from HubSpot experts.