Hubspot to invest €5m in Irish operations
Marketing software company Hubspot will invest at least $5 million in its Irish operations as it seeks to grow its international base.
The investment will be used to fund recruitment at the Irish arm of the company in addition to building marketing support for the European base.
Hubspot announced in September that it was planning to create 150 jobs over the next three years in Dublin as it opened its European headquarters here.
Recruitment has already begun, with 10 people already in roles here and a further 10 moving to Ireland for the opening of the office.
That figure will rise to 50 by the end of next year, with plans for 150 staff in the following two years.
Hubspot offers "all-in-one" marketing software to companies, and has about 8,000 businesses using its products.
"What's important about that is that a lot of marketers use different point systems - they might have an email system, a web analytics system, a blogging system. They're typically disconnected," said chief marketing officer Mike Volpe.
"Having the data all in one place gives you a clearer view of customers and potential customers, so you can have a much better relationship with them."
The funding is part of a $35 million (€27.4 million) mezzanine round the company undertook to underpin its growth.
Mezzanine funding is later-stage funding typically raised before a company moves to its initial public offering.
The money was raised from a large institutional investor, which has not been named, alongside Altimeter Capital, Cross Creek Capital and previous backers of the firm.
Mr Volpe said Hubspot was considering an IPO, saying it was "probably the next step" for the company, although there are no immediate plans to float.
The company is putting Ireland at the heart of its European growth strategy.
At present, Mr Volpe said, there were no plans for additional European offices, although satellite offices may be set up later.
The past few years have seen significant revenue growth for Hubspot, which is targeting $50 million in turnover this year, an 80 per cent growth from the prior 12-month period.
Although the European business represents a smaller portion of the company's revenues at the moment, Mr Volpe said it was growing at 200 per cent.
"I think our European business can be at least as large as our north American business, but it's going to take a few years to get there."
Founded in 2006, Hubspot has since raised $100 million in funding from a variety of sources, including General Catalyst, Matrix Partners, Scale Venture Partners, Sequoia Capital, Google Ventures, Salesforce.com, Charles River Ventures, Altimeter Capital and Cross Creek Capital.
Sequoia Capital has also invested in major tech firms such as Google, Youtube, Apple and Oracle.