Congratulations. If you can close a round now then it makes perfect sense to do so. You are providing a GREAT service to paying and non-paying customers. I was always told if you are offered water in a desert, take a drink, even if you are not thirsty.
Congrats! That's a lot of play money -- it will be fun to see how the product evolves.
It is true that "inbound" is the future; people who don't get it will still have to live it...
This post was not at all arrogant or self-indulgent. I would rather say you are the only person who writes freely about his plans and successes. It is very enlightening to people like myself who are trying to set up their first start-up and having all these questions.
Thanks for this post.
I hope you will keep writing your (your company's) thought process.
33-mil, thats' not chump change.
Maybe you can invest $500,000 in my Frontier "Face" business development model which is a hybrid Independent sales rep organization/marketing company which offers cold calling direct sales in an "offline format" for small and start-up companies who cannot afford a real outside sales force and who don't want to get lost on an Independent Sales Reps organizations line card with similar products.
Anyone interested in my new business model can contact me at:
And I also have invented a product-treatment for psoriasis, a chronic skin disorder that requires funding and I cannot gain the attention of anyone in the Dermatology industry because my product works as well as the $12K to 25K a year products, but at a cost to the sufferer of under $1,500 per year, A PPP is available and I am seeking $500,000 investment for Frontier DermaSciences,LLC, viewed at:
So its great to hear you raised 33million, how much income has your firm generated and are you profitable yst?
Well done and never turn down money! It's akin to never turning down a meal in the military.
You never know when your next meal will be...
Congrats on this and the new book Dharmesh.
Thanks for your candidness. Good to see the Boston scene is still alive and kicking.. Also interesting to note that raising funds from VCs in the Valley doesn't mean you have to move there. =)
Great to see that You Have Successfully Raised $33 Million.
I'm a MIT Sloan first year and Hubspot (former) customer (before returning to school) who loves the product and the customer service. Truly enjoyed watching the company take off over the last few years.
I don't quite get it. If you have $6MM in the bank and are cashflow positive or close to it (big assumption of mine I guess), why not use the $6MM for Product and Customer Acquisition?
Keep up the fantastic blogging!
Congrats Dharmesh! Timing on the round was smart, and not just because you didn't need it. While this is somewhat counter-intuitive, great companies are currently raising capital at relatively aggressive prices from an investor perspective. Many investors are eager to put money to work, but there is a scarcity of deals that pass the higher bar that is set in a down market. Given that Hubspot is one of those unique companies, I imagine you were able to raise capital at a fair price.
you are very generous
Congrats Dharmesh. You and your company deserve it, and thanks for sharing, this, and all your thoughts and experiences!! They're immensely valuable.
One thing that was confirmed in your Blog is how one must continue to refine their plans and financial statements to reflect their objectives and the reality of their progress.That's why we built the Funding Roadmap as a server based in the cloud reporting system so your plans can stay courant with your progress.
Dream It! Plan It! Launch It!
Many thanks for the great insight into what drove your just closed $16mil round. Not many explain such things, but yours was quite educational. Congrats on your closing and on your Inbound Marketing book published today.
Great Post man! I def like the way you think. I hope the best for you.
Great book Dharmesh! I've been reading everything from your company and definitely get it! I'm a lowly little Social Media instructor in the state of Washington to Real estate and mortgage professionals and battling it out here on the inbound marketing frontier.
It's been an educational process to bring awareness to the radical changes happening in marketing and your company and site and everything you guys publish has been instrumental in my learning/teaching process.
It's inspired me to coin the phrase "Unique CONTENT Proposition" to many of my students and clients. My recent clients are beta testing a suite of best practices I've developed, in helping them craft great content in their inbound marketing efforts. During that process recently, we discussed the tried and true concept of developing a USP (unique selling proposition).
Well, taking a chapter from your playbook, I said that it isn't about selling with the publishing mindset we're developing, it's about creating content that differentiates you from the rest of the competition. And borne from that was UCP - "unique content proposition." If a company can find it's UCP, they will have remarkable content worthy of resharing, reposting, and further build relationships!
I'm also working as the Social Media Networking Consultant in a small startup (I say small, since their VC proposal is only requesting 1.5 mill) and what they have for the mortgage industry is quite unique. We have customers now, are poised for rapid growth and the key, main marketing tactic is through our educational efforts. I've teamed up with various entities to offer education to Real estate agents, mortgage professionals, and most recently to the consumers. Thanks to Hubspot for being an example of how educational efforts breeds business opportunities.
To that end, it's about using all the newest techniques to create attention for ourselves via inbound marketing. Is it a challenge for a small startup company? ABSOFRIGGINLUTELY! But reading your post offers inspiration and positive reinforcement.
Thanks for the great book and info here as always; it helps us to know what's inside your mind and how Hubspot ticks. If you find that all that VC $$ is taking up too much room in your safe, feel free to toss a few bucks towards us in Seattle, Washington! LOL
Just have to put the counter opinion here, too much agreement. :)
I think it was a VC who said "I was always told if you are offered water in a desert, take a drink, even if you are not thirsty."
They also said "Wouldn't you like to own 3% of SOMETHING rather than 100% of nothing?"
They are platitudes mostly. Created to make entrepreneurs feel good in giving up most of their sweat equity to money that doesn't always help. I don't agree with the always raise money when you can philosophy. Each case is different - very different.
If you guys are profitable, or close to it, then raising may not be a great idea. The BEST way to raise money for a company is from customers - by selling your product. That's the real "old fashioned" way, and it works it most of the cases of successful companies.
Perhaps you took some out for yourself - anytime you can put a little away for your hard work, you should. You work for less than market rates with the promise of equity upside for years, someone wants that upside, it's okay to put some in the bank for yourself selling it to them - some of your own. Which is also non-dilutive to the rest of the company.
Yes, there are certain opportunities that require capital - for speed reasons, structure of business, etc. Google and Facebook come to mind - and raising was very smart for them, but also very non-dilutive from the start - they got great valuations. For Hubspot was this a wise choice? Perhaps - could have been very wise. I don't know for sure- don't know enough about the business. But I thought this post should at least have something addressing more of the reasons not to. :)
Say hi to Brian Halligan for me please.
You made all the right decisions for all the right reasons. Entrepreneurs waste way too much time worrying about valuation and timing and typically spend not enough on building the business. Further thoughts on this theme are at http://bit.ly/2NSvyE
I have to agree with Cashman on this. It might have been a smart move, but considering you have 6 million in the bank, and you have a product that's selling...it seems you got money because you could, not because you needed it. And I don't think that's a good reason if your plan is to build a BIG business.
But either way, sounds like you're doing quite well...I hope it works out for you.
Frankly, your story is what my clients and students need to hear. Although we live in an economy we create our own economics. GOOD ON YOU. Keep us posted!
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Have enjoyed reading your blogs even earlier. But since I saw you (or rather the video of it) speaking you in 'Business of Software' conf last year, have become a fan of yours.
You are emerging as one of the most proficient blogger on Startups. Off late your blogs are no less insightful than PGs essays! Keep it up.
And not to forget: I simply love your definition of success. Very well said.