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 InvestorsCAMBRIDGE, 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.”
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NFL draft 2011: No NFLPA event on first or second night of draft
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Jon Stewart Calls Out NBC <b>News</b> For Not Reporting on GE's $0 Tax <b>...</b>
On Friday, The New York Times reported that General Electric paid no U.S. federal income tax in 2010, despite earning $14.2 billion in profits. While.
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URGENT: Plutonium detected in soil at Fukushima nuke plant: TEPCO <b>...</b>
URGENT: Plutonium detected in soil at Fukushima nuke plant: TEPCO. TOKYO, March 28, Kyodo. Plutonium has been detected in soil at five locations at the crippled Fukushima Daiichi nuclear power plant, Tokyo Electric Power Co. said Monday ...
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Apple advertises its products as magical. They’re at the intersection of “technology and the liberal arts,” Steve Jobs said today. Something that moves your heart, not just your lust for technology. Will consumers still buy that in 2011?
The big picture question of the day is whether Apple has done it again. With the original iPad, Apple crushed its rivals, taking more than 90 percent of the tablet market in 2010 and selling more than 15 million units. Jobs predicted today that 2011 will be the year of the iPad 2. Based on what I have seen today, I think he’s mostly, but not entirely, right.
Competitors will discover that Apple has a lot of inherent financial advantages, including being a low-cost leader. That may not sound intuitive, but I believe it has to be true. It is selling so much volume of its products that it can get discounts on parts and manufacturing services that no one else can get.
When it sells its products in stores, it also doesn’t have to give away 20 percent of the margin to a retailer. That is a huge financial advantage. Carriers are also willing to subsidize the costs of Apple products in a way that they won’t with other tablet vendors. All of these things may explain why the Motorola Xoom, a very cool product, is selling for $800 while Apple has priced its new devices at $499 to $829, (and dropped the price of the old iPad to $399). Apple has also left very little room for rivals here, since it has signed up both AT&T and Verizon. Perhaps there is room for rivals to sell $199 machines, but users probably aren’t going to like them.
Those are reasons why any cool Apple mobile product could beat other rivals. But Apple has also done some smart things with the iPad 2. It has created another rev of its microprocessor, the A5, which has two cores, or computing brains. And it has nine times faster graphics than its old A4 chip. Since Apple designs this chip itself, it doesn’t have to give away much margin to a chip design firm. It only has to give a small margin to a chip manufacturer such as Samsung to make the chips.
Apple has also custom-designed the A5 to run Apple applications on a device with a 10-hour battery life. Apple should have an edge there, as it won’t sell the A5 to rivals. But if this is an advantage, it isn’t likely to last long, as Nvidia is being very aggressive with a new quad-core chip that it could sell to any Android rivals.
The design of the iPad 2 is where Apple has more advantages. The iPad 2 will have faster web-browsing with a new version of Safari. It has two cameras that will inspire a lot of video and photo-related apps. The availability of the Mac applications — iMovie, Garage Band, and Photo Booth — on the iPad 2 will make a lot of users happy. More interesting features will come with new releases of the iOS, or Apple’s operating system in the fairly near future.
There are some users who won’t like the restrictions of Apple’s ecosystem. If they want universal serial bus (USB) and SD card ports, they are out of luck. Apple didn’t change the resolution of its screen either, leaving it at 1024 x 768. Competitors could add these options and put emphasis on them as selling points. (Critics are disappointed that Apple did not improve the display, but that’s a big cost issue others have too).
Apple has also made great improvements in the feel of the product. It’s 33 percent thinner, 2 ounces lighter, and it has a wonderful new screen cover that doubles as a stand for the device. (It wakes up the device when you peel it back and it has micro-fibers that clean the screen when the cover is on).
Now here is why Jobs is not entirely right. Apple has come up with a stunning machine at prices that the competitors will have a hard time beating. But it is almost inevitable that Android-based tablets will gain market share on Apple.
So far, I don’t see the Android machine that will beat the iPad 2. But the potential is there, given ingredients such as Android 3.0, Nvidia Tegra 2 chips and other fast microprocessors, and 4G LTE. The latter is the main weakness in Apple’s armor.
LTE is fast, with a minimum speed on Verizon at around 12 megabits a second and actual speeds running much higher than that now. Getting access to 4G LTE is as big a benefit as having access to lots of cool apps, from my point of view. Right now, the timing of the still-young LTE technology means that Apple cannot yet put it into its mass-produced, lowest-cost tablet computers.
If LTE costs come down sometime soon, then Apple can launch a new version of the iPad to incorporate the technology. But it’s not a simple upgrade, as it means that the hardware of the machine — including the radio chip — has to change. And for now, LTE chips are larger than their 3G equivalents, so the heat dissipation and product size are affected. In other words, LTE can force Apple to redesign the iPad.
Apple can do that. But Android tablet makers might be able to move faster than Apple directly into the 4G LTE tablet market. If they do that, then they will have found a scenario where they could steal a march on Apple. Apple is not likely to let that gap last for a long time, but it might be enough for Apple to lose some share this year.
Apple’s leadership position in this market will be hard to beat, but the collective weight and reach of Android rivals could erode it. And here’s a sobering thought: If Apple eventually winds up with only 30 percent of the tablet market, it could still be No. 1, and its place as the largest technology company in the world will not be at risk.
Check out Apple’s overview video on the iPad 2 and Jobs’ comments on technology and the liberal arts below.
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For Apple, the mobile market is a cash cow. The company’s iPhone and iPad are proving to be the top mobile companions for people around the globe. Apple has sold over 100 million iPhones. Its iPad sales have hit 15 million. The company understands the mobile market and it knows how to capitalize on it. But what about the living room? It has the Apple TV, sure, and the Mac mini is often times connected to an HDTV, but what else has Apple done to push the envelope in the living room? It still hasn’t launched the long-rumored television we keep hearing about, and it seems that offering a game console — a hope for many Apple fans over the past few years — won’t happen. I fully realize that Apple can’t be everything to every customer. It delivers computers, smartphones, tablets, personal media players, two operating systems, wireless routers, and much more. But I also realize that Apple is an entertainment company. It’s about trying to give people more opportunity to enjoy their lives through technology. And it would only make sense if it doubled down on the living room. Let’s turn our attention to the Apple TV for a minute. Prior to its announcement in September, rumors were running rampant over what the former “hobby” would offer. Folks thought it would deliver gaming, interface with DVRs, include Apple’s App Store, and much more. They thought it would be a sizable update over its predecessor. Instead, Apple offered a stripped-down alternative. The second-generation Apple TV comes with the ability for users to stream Netflix content. It has Flickr and Internet radio. And it allows users to stream their music over their home network to their televisions. It offers movies and television shows, as well, but most would agree that it’s slim pickings for now. At that event in September, Steve Jobs said that Apple’s research showed customers didn’t want everything a company could pile into a device. They simply want the ability to consume the content they enjoy without the fuss that might come along with something like Google TV-based devices. But by delivering the bare minimum, Apple did itself no favors. The company took the easy way out and pretended like it no longer views the living room as a hobby. The only issue is, the Apple TV is still a hobby. It’s a device that lacks all the functionality we’ve come to expect from Apple — a company that typically prides itself on offering the best value for the cash. And at least so far, it leaves me wanting more. So, what am I looking for? I want to see Apple improve the Apple TV by bringing its App Store to the platform. I’d also like to see some kind of gaming component come to the device, either through the App Store or as part of a more-capable platform. And perhaps most importantly, I’d like to see Apple think beyond its set-top box and deliver products that try something new. I’m not sold on the possibility of Apple offering a groundbreaking television, but if it can surprise me, I’m all for it. Simply put, I’m looking for Apple to be Apple. Right now, it’s just like every other company in the living room; it’s content to have a presence but not dominate. That needs to end. No single company can stake claim to the living room right now. Steve Jobs just needs to take advantage of that void and do something special. But first, he needs to take the living room — and its revenue potential — seriously.
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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
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The Shorty Awards - Honoring the best of Twitter and social media
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A 2.5 Year-Old Uses an iPad for the First Time
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Welcome to Facebook
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50% of Tweets Consumed Come From Only 0.05% of Twitter Users [STUDY]
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autosport.com - NASCAR <b>News</b>: Raikkonen to compete in NASCAR
Former Formula 1 world champion Kimi Raikkonen will make a surprising move to NASCAR this year, the Finn joining the series with a new team.
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Q&A: How dangerous is the plutonium found at Fukushima power plant <b>...</b>
Plutonium has been detected in soil at five locations in the crippled Fukushima Daiichi atomic power plant of Tokyo Electric Power Co. The following are questions and answers regarding the potential health hazard of the highly toxic ...
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