Hubspot Leaving Kendall Square; Next Stop: Lechmere
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a big open area in the middle to do podcasting. It’s a really great space, and we’re really excited.”
HubSpot’s Web-based software helps its clients optimize their “inbound marketing” efforts. Inbound marketing is Hubspot’s term for a collection of techniques designed to turn people who visit a company’s website into paying customers. The startup argues that these techniques are more cost-effective than traditional “outbound” marketing such as advertising and direct mail.
Customers apparently agree. HubSpot has 2,300 clients; the October 2009 book Inbound Marketing: Get Found Using Google, Social Media and Blogs, by HubSpot co-founders Brian Halligan and Dharmesh Shah, is selling strongly; and business “is growing at a pretty rapid clip,” Volpe says. “All this hiring we’re doing is not ahead of our revenue curve—it’s because we’ve grown.”
HubSpot’s $16 million Series C venture round in October 2009 brought the company’s total funding to about $33 million. The company can afford to expand to 150 and move into a larger space without increasing the rate at which it’s burning through that money, says Volpe. “We’ve got tons of cash in the bank. All the metrics are moving in the right direction”—which is to say, north.