Another day, another honking big funding for another online start-up (and yet another broken embargo too!).
It’s like Groundhog Day in Silicon Valley as usual.
Today, Cambridge, Mass.-based HubSpot wins tech’s version of the lottery, grabbing $32 million from Sequoia Capital, Google Ventures and also Salesforce.com.
It is unclear what the valuation for HubSpot is now, although it is likely high given it has raised $65 million now.
HubSpot makes marketing software for businesses, who use it to find prospects and generate leads, along with tools to analyze the process. It claims it has “4,000 customers, over 50 percent market share, five million leads managed, and 70 million page views tracked monthly.”
The Series D financing included HubSpot’s existing venture investors–General Catalyst Partners, Matrix Partners, and Scale Venture Partners–and part of it will be used to cash out existing shareholders. In previous rounds, the start-up has raised $33 million.
Here is the official press release:
Sequoia, Google Ventures, and Salesforce.com Invest $32 Million in HubSpot
Marketing Software Company Attracts New Strategic Investors
CAMBRIDGE, MA–(Marketwire – March 8, 2011)–Today, for the first time ever, Sequoia Capital, Google Ventures and Salesforce.com all invested together in one company, providing HubSpot with a Series D round of financing through a $32 million investment. HubSpot provides all-in-one marketing software used by over 4,000 businesses to get found by more prospects, convert them into leads and sales, and analyze the entire marketing process.
“The fundamental way that people shop, learn, and buy has changed radically in the last few years. HubSpot helps transform the way businesses market from outbound marketing (cold calls, email blasts, and direct mail) to inbound marketing (Google, blogs, social media, mobile, etc.),” said Brian Halligan, co-founder and CEO of HubSpot.
Sequoia Capital has a long history of partnering with founders to help them build long-term, multi-billion dollar companies, including Google, LinkedIn, AdMob, YouTube, Yahoo!, Apple, and Oracle. “We back companies that are transforming their industries,” said Jim Goetz, General Partner at Sequoia Capital. “HubSpot is the emerging category leader in the SaaS marketing sector. Their customer base exceeds that of all the other relevant marketing software companies combined, including Eloqua, Marketo, Genius, and Manticore.”
“Today, every company needs to succeed in search, social, sales, and marketing–I can’t think of a more powerful trifecta than Google, Salesforce.com, and HubSpot. With 4,000 customers, HubSpot is already a clear marketing leader–now, with this new infusion of capital and recognition by Google’s venture arm and Salesforce.com, HubSpot has a great opportunity to separate itself from the pack and become the leading marketing platform in the small and medium business space,” said Brent Leary, co-founder of CRM Essentials.
Google Ventures Partner, Rich Miner (formerly co-founder of Android) said, “We agree with HubSpot’s belief that search engines, social media, and mobile devices have fundamentally changed how businesses should market themselves. We’re thrilled to support their efforts to help thousands of small and medium businesses reach potential customers.”
Dharmesh Shah, co-founder and CTO of HubSpot commented, “We founded the company based on a simple premise: Businesses want an easy-to-use, complete and integrated marketing platform that helps them get more leads and customers. We plan to use this new capital to further invest in this ambitious vision and further our existing lead in the marketing software category.”
A few years ago, the Internet experienced a video revolution. As broadband access expanded and more people began uploading content, video became an expected resource for consumers. Businesses could get more mileage out of television commercials and engage users by linking to video reviews of its products.
A year ago, we saw evidence of small and medium-sized business increasing budgets for video content – to be used both on their homepages and in advertisements. In 2009, 19% of businesses polled were using video (up from 5% in 2008) and I’m willing to bet that number will be much higher in the 2010 report that should come out later this month.
Now, as technology has become more affordable and increasingly mobile, we’re able to experience virtually anything online. As such, local search engines are evolving into master content synthesizers to meet the needs of consumers and advertisers alike – offering video and photos, local advertising deals, user reviews, QR codes, maps and directions, etc.
Consumer expectations of local search engines have never been higher. Users want to see photo and video reviews of a company’s products, read what other people have to say, and even take a virtual tour of your store or restaurant before they visit.
The same is true of small- and medium-sized business owners looking to find a competitive advantage. Local search engines are offering more dynamic content than ever before to users and it’s up to search marketers to help business owners feed that content.
It’s interesting to see how video content has changed since the advent of YouTube. Instead of traditional video advertising, we’re seeing new technology that lets users look around your business from their own home. Soon, we’ll be able to find virtual creations of almost any environment online – and those virtual tours are being integrated with current deals and other advertising promotions to drive traffic to your business.
Recently, a company called EveryScape partnered with Bing and YP to offer digital advertisers a new local search solution – virtual tours. For example, YP360 will let a user step inside a restaurant in Baltimore while they’re still on the train. They can choose a place and even set a reservation, all within the same application on their phone.
Google Earth has gone indoors and local search engines are responsible for bringing this detailed and vivid content to users while keeping it simple and accessible. And the business case for offering this new content to users and advertisers alike is clear as local advertising is expected to grow to $16.1 billion this year, up from $13.7 billion in 2010.
Even more, mobile phone advertising spending is expected to be more than a billion dollars in 2011, up 48% from 2010. Local search engines like YP and Yelp! are seeing over 20 million visitors a month, many of them accessing via mobile phones.
This is a great opportunity for local search engines and advertisers to embrace this new technology and get ahead of the pack. Effective local advertising goes beyond building a social networking presence and listing in directories – you have to make sure your content is engaging. In the online world, the savviest local search marketers who use this technology well will have the most successful campaigns.
I recommend that any business owner or local search marketer read up on the latest digital advertising solutions and consider offering your customers virtual tours of your products or store. To set your business apart, you need to stay current with the best that local search has to offer.
Opinions expressed in the article are those of the guest author and not necessarily Search Engine Land.
Related Topics: Locals Only
Surface Encounters
Mike Krzyzewski called Jalen Rose's comments on Duke "very insulting."
Surface EncountersThe news only seems to be getting worse at Fukushima. There doesn't appear to have been progress at the nuke plant in ages. TEPCO stock got crushed again, and there are even rumors of the CEO fleeing. That dragged Japanese stocks down ...
Surface EncountersNews videographer Dan Chung's footage of the tsunami devastation is moving, literally and morally. Shot on assignment for the Guardian, the work has attracted a good deal of attention—and no small amount of criticism, ...
Surface Encounters With the company’s future already clouded by Steve Jobs’ latest medical leave, the possibility of the iPad’s chief designer, Jonathan Ive, cashing out ups the uncertainty, Dan Lyons writes.
Is Apple losing its design guru?
When Apple CEO Steve Jobs announced in January that he would take a third medical leave, the biggest concern was the cloud of uncertainty that hovered over the company. Now that uncertainty has become an issue again, as rumors have started swirling that Apple might lose its chief designer, Jonathan Ive.
Apple's head designer Jonathan Ive poses for a portrait on January 27, 2010 in Cupertino, California. (Photo by Paul Harris / Newscom)
Reports in Ive’s native England suggest that the man who oversaw the design of the iPhone and iPad wants to spend more time in the U.K., putting him at odds with Apple’s board enough that he would consider leaving the company. Although Ive and Apple won’t comment, the scenario is plausible for two reasons: First, Ive is about to cash in options valued at $30 million that he was granted in 2008; and second, Ive has an especially close relationship with Jobs.
Whether Ive stays or goes, the brouhaha shows the challenges that Apple is increasingly likely to face given the questions about Jobs’ role in the coming months. One scenario being bandied about by Apple-watchers suggests Ive is making a power play to succeed Jobs; it seems just as likely, however, that he simply may not want to work at Apple if Jobs isn’t there.
Still others think the entire notion that Ive might leave is completely unfounded. But either way, the whole incident shows how the Jobs health situation is bringing more drama to a company that, until now, has been a model of tight-lipped discipline.
Apple’s products are famous for their sleek designs, and conventional wisdom holds that losing Ive would be a terrible blow to Apple—“Apple’s worst nightmare,” Britain’s Guardian called it. But the truth is, losing Ive may not be as big a deal as some Apple watchers think.
For one thing, Apple has loads of bench strength in every department, and because of its success it can attract just about anyone it wants.
“How much of this is Steve, how much is Jon, how much someone else? Steve always had an eye for design. The designer is only as good as the client,” says Jean-Louis Gassée.
For another, the real genius behind Apple’s designs might not be Ive—but rather Jobs.
That’s the educated guess of Jean-Louis Gassée, a former top executive at Apple and a longtime close watcher of the company who still has many connections there.
Gassée points out that Ive was already working at Apple when Jobs returned to the company in 1996. Ive joined the company in 1992, when Jobs was gone from the company, having been ousted by the board in 1985.
And before Jobs returned to Apple, Ive wasn’t exactly setting the world on fire. The first products that Ive designed under Jobs were the “Bondi Blue” iMac and the somewhat ugly iBook. Ive’s next products, the "desk lamp" Mac and the early metal laptops, were better looking, Gassée says.
Editor’s Note: Jim Dalrymple has been writing about Apple for more than 15 years. You can follow him on Twitter @jdalrymple and on his Web site at The Loop.
Apple CEO Steve Jobs on Wednesday introduced the iPad 2 at a special event in San Francisco, taking even more momentum away from its competitors.
I’ve had a lot of people in the last 24 hours tell me that the iPad 2 isn’t as revolutionary as the first generation device. Yes, that’s true. But not every device a company releases has to be or can be revolutionary.
Apple has released three revolutionary products in the last decade alone: iPod, iPhone and iPad. I really can’t think of any products from Apple’s competitors that fit in the revolutionary category in that same time period.
People also said that Apple wasn’t very forthcoming with the specs of the iPad 2. Again, that’s true, but there’s a good reason for that—nobody cares.
Well, some people care. Those of us who are geeks care about specs. However, have you ever noticed that when you sit with your non-geek friends and start listing off specs their eyes glaze over and they rest their chin in their hand.
That’s because they couldn’t care less.
The iPad 2 is no slouch either. It lost one-third of the thickness of the previous generation, and therefore it is one-third less than the size of the iPad competitors too. It also has new technologies like a gyro built-in that will launch another round of cool apps.
Yesterday’s iPad 2 announcement wasn’t about the geeks—it was about all the other people who will buy an iPad. What those people want to know is “what can I do with it?”
If it fits into their lifestyle, most people are good with that. Apple showed many ways how the iPad 2 can fit into your lifestyle.
From the very beginning, Apple was very smart with how it marketed the iPad. The first thing it did was get the device into businesses and promote the fact that it could be used to get work done. And it was quite successful with that.
In an analyst call in October 2010, Apple CFO Peter Oppenheimer said the iPad was already being used in 65 percent of Fortune 100 companies. That was four months ago and the iPad has grown since then, so we can only imagine where that number is now.
This strategy allowed Apple to do two things. If it came out with the iPad and pushed the gaming capabilities of the device, the business world would have looked at it as a toy. That would have certainly meant slower adoption. It also allowed them to work on some consumer software, two of which we saw yesterday.
In addition to the iPad 2, Jobs also unveiled iMovie and GarageBand for the iPad. This is what people want to know about—what can I do with the iPad that’s exciting and new.
Obviously, creating movies and being able to edit and share them with friends and family is a very popular thing to do these days. iMovie makes that easy.
Creating music, whether a novice or pro is also a cool thing to do. GarageBand is a great app to get that done and you can move your projects to your Mac and continue working on them.
It’s not just about the hardware. Apple delivers the whole experience that nobody else can. Jobs said yesterday that there are 65,000 apps on its App Store specifically designed for the iPad. That’s a lot of things you can do.
If you think Apple’s competitors are jumping for joy because the iPad 2 isn’t revolutionary, I believe you are wrong. I think they’re scared. Yesterday, they figured out Apple’s strategy too, but a little too late.
Surface EncountersSurface Encounters What is your social media brand? Do you have one? Sure, many small business owners and entrepreneurs are coming around to the enormous importance of social media as a marketing, customer service, and, yes, even sales tool. But if you haven’t thought about how social media can define your brand, you are probably missing a HUGE part of what social media tools can do for your business. Here’s more…
Tools & Techniques
Creating a great brand with these blog tools. Tools that improve the look and functionality of your blog also improve your brand. A well-maintained small business blog is one of the most obvious and least expensive branding tools at the entrepreneur’s disposal even more so than social media channels like Facebook and Twitter because of how a blog can be customized to fit your needs and personality. This list of tools is a great way to start. EpicLaunch
What Nicole “Snooki” Polizzi can teach you about social media. One of the stars of the hit reality show “Jersey Shore”, “Snooki” is a perfect example of personal brand, but social media entrepreneurs could also learn much about building their own online presence from Snooki. Being yourself and using a simple, short tag to indelibly brand your identity are also great techniques in social media. One site is already trying to apply the starlets techniques in the social media space. Brand-Yourself
Tito Philips doesn’t want your comments on his blog! At least, not if they’re the wrong kind. And the wrong kind would be comments left for no other purpose than to get the blogger and his/her readers to visit your blog and perhaps comment on it in return. Why is comment trading bad? Don’t get Tito started! There are many ways to engage in social media marketing. Be sure you understand and respect some of the attitudes you may face. Blogging Bookshelf
News & Trends
The best of the best. Want to get a look at arguably the 20 best Facebook fan pages for business on the planet? By now you should know the value of a Facebook fan page to your branding efforts. What’s also true, however, is that not all Facebook sites are created equal. If you want to take your social media marketing to the next level, have a look at this list of cream of the crop sites. Inc.com
Even churches use social media marketing! In this article on the growing market for tech services among religious organizations, we learn that many churches have also already entered into the social media space. As houses of worship, particularly huge mega-churches, expand and build congregations, it’s easy to see how social media can work as a marketing tool here as well. Is your religious organization using social media for branding? WSJ
Tips & Tricks
20 tips that will make you a Twitter star. Among the tools popular in the new digital space is Twitter. The microblogging platform can be used for business or non-business purposes and it can be the key to your small business’s success. Learn how to use Twitter like a pro and you may be surprised at the benefits your small business gains as a result. Global Copywriting
Valuable lessons in social media. Gary Vaynerchuk, author of The Thank You Economy and a successful social media entrepreneur in his own right, has many insights to share with small business leaders seeking a new way to define their brands in an age of social communications. Read some of the takeaways Vaynerchuk shares with those trying to define their businesses with social media. E-Marketing Associates
Success Stories
Doubt the power of FB to create brand for almost anyone? You won’t after you read the story of Princeton English Professor Jeff Nunokawa and “Jeffbook”, a collection of 3,221 brief literary essays on Facebook, that have created an incredible cult status for Nunokawa in the process. His motivation? Not too different from those of most marketers. Nunokawa simply started sharing where he knew his audience already spent lots of their time. The results speak for themselves. Fast Company
Increase exposure with niche social media. Blogger Mavis Nong talks about the importance of niche social media sites including social bookmarking sites as a key method of creating exposure for your online business. Mavis talks about her experience with our sister site BizSugar.com (thanks for the shout out! ) and explains how smaller more focused social sites can sometimes have a surprising impact even larger than the big guys. Attraction Marketing Online
Opportunities
Sponsors wanted for new SugarTone Sweet Business Blogging Contest. Put the power of social media to work for your brand. We’re looking for sponsors to help with a brand new blogging contest involving two of the fastest growing small business communities on the Web, BizSugar.com and Bloggertone.com. Learn more about the contest by reading the full announcement and get in touch today! BizSugar Blog
Recognizing Women's History Month, New Deal 2.0 tells the surprising story of how women became citizens -- and how their economic lives have evolved along with their rights. Allida Black urges action on UN Resolution 1325, which ensures equal citizenship for women across the globe.
The monumental elections of Presidents Ellen Johnson Sirleaf (Liberia), Roza Otunbayeva (Krygyzstan), Dilma Rousseff (Brazil), and Prime Minister Julia Gillard (Australia) and the game-changing appointments of Dr. Michelle Bachelet as Under-Secretary General of the United Nations and Executive Director of UNWomen and Hillary Clinton as Secretary of State proved that women can govern, run preeminent human rights organizations, set international policy, and place women at the center of diplomacy, development, and peace.
But the question remains -- if women can be president, why can't they be citizens? Article 1 of the Universal Declaration of Human Rights declares, "All human beings are born free and equal in dignity and in rights." Yet it took another twenty years after its signing to get the international conventions on political and civil rights and on economic, social and cultural rights -- and, in the United States, another twenty plus years for Congress to adopt legislation ensuring women's political and economic rights. It took another thirteen years for the United Nations to ratify (without the support of the United States) the Convention to End All Forms of Discrimination against Women. And in 2011, the US House of Representatives and other foreign governing bodies still toy with legislation essential to women's identities, ranging from limiting access to reproductive health services and marriage to crafting sentencing guidelines that treat girls and women as felons and charges those that have abducted and abused them with misdemeanors.
In a 1946 column, written before she joined the UN Commission on Human Rights, Eleanor Roosevelt urged women to "call on the Governments of the world to encourage women everywhere to take a more conscious part in national and international affairs, and on women to come forward and share in the work of peace and reconstruction as they did in the war and resistance." More than fifty years later, at the dawn of a new century, the UN Security Council -- pressured by a well-organized international women's lobby, Hillary Clinton, and other stateswomen and embarrassed by the rampant use of rape and genital dismemberment as tools of war -- adopted Resolution 1325. It urged "Member States to ensure increased representation of women at all decision-making levels in national, regional and international institutions and mechanisms for the prevention, management, and resolution of conflict."
Now ten years later, the campaign -- indeed the struggle -- to enforce this resolution rages across the United States as much as it does across Egypt or the Congo or Afghanistan.
It is tempting to construct this resolution narrowly -- to see it as a tool of armistice rather than reconstruction, as a vehicle to protect women rather than empower them. To do so, to paraphrase Albus Dumbledore, would be to do what is easy rather than what is right.
UN1325 is on the front line in the campaign for women's citizenship. It is a battle to ensure that economic, social and cultural rights cannot be divorced from, or considered separately from, political and civil rights. It is the struggle to reclaim democracy promotion away from post-Cold War politics, self-interested development and the campaign against terror and place it at the heart of citizen participation.
Just as important, it is a campaign to ensure women's rights as citizens as much as it is a campaign to force governments to act responsibly to all its citizens. While equality and human dignity have no sex, policy designed without taking stock of gender differences often perpetuates discrimination.
As Eleanor Roosevelt would say, both citizens and governments must "recognize that the goal of full participation in the life and responsibilities of their countries and of the world community is a common objective" and one "which the women of the world should assist one another" in achieving.
This post originally appeared on New Deal 2.0.
Surface EncountersDonald Trump learned the hard way this week that if you're going to call on the president to release his official birth certificate, you'd better do the same. The Note, authored by ABC News' Amy Walter and Michael Falcone, ...
Surface EncountersSurface EncountersSurface EncountersThe news only seems to be getting worse at Fukushima. There doesn't appear to have been progress at the nuke plant in ages. TEPCO stock got crushed again, and there are even rumors of the CEO fleeing. That dragged Japanese stocks down ...
Surface Encounters
