HubSpot has just announced the creation of a new venture capital fund which will aim to support other start-up companies and help them develop their full potential. The new entity is known as HubSpot Ventures and it will seek capital from private investors in order to bolster the offer of companies that have big ideas but lack the funds.
The HubSpot Ventures capital fund will seek to raise as much as $30 millions and help enterprises with their Series A, B and C funding rounds. However, Series C financial aid will remain limited for the time being.
HubSpot is not new to the idea of investing en masse either. The company has forwarded investment into Drift, a sales funnel automation and chat firm alongside Sigstr, an advertisement agency. HubSpot has been present in other deals too, which has made the company think carefully and finally push through with the idea of creating a private equity fund, designed to assist developing counterparts.
The new fund will have a specific audience, however, focusing mostly on SaaS solutions and development ideas, which will narrow down the scope of the investment for HubSpot for sure. However, the fund will remain open to ideas that are worth hearing and endorsing.
HubSpot Ventures will also seek from companies to take assessment tests. As they do, HubSpot will help device strategies and development plans along with advice and recommendations, which means that the company will serve as a guide to many up-and-coming companies rather than just throwing money at promising ideas.
HubSpot will utilize modern research practices, combining private and public metrics to determine whether and how much each individual company should receive in fresh capital. The company will use metrics collected from the public domain, meaning that a good start-up companies would be interested in genuine and positive feedback on Glassdoor and Facebook.
HubSpot Ventures has also set a rather ambitious goal for itself. The company wants to help hundreds of companies develop. This is an objective for the long term and no less, but HubSpot Ventures seems every bit as determined as it should be in order to pull off this achievement. There is a lot that is necessary for the company to be successful, but with proper guidance, this will be achieved soon enough
HubSpot Ventures will start with $30 million in private capital, but this number is likely to grow, with the company leveraging the HubSpot brand and making investors appreciate the value of investing in such a product.
HubSpot Ventures will most likely begin operations in Q1, 2019, already preparing to accept and review the most promising titles out there. The company will need to prepare itself thoroughly to be able to respond to a potential influx of candidates.
In order to vet the public domain, HubSpot Ventures will need to carry out meticulous research and ensure that it applies enhanced due diligence practices to guarantee the frankness of the companies that approach it. It will be a long process but one that’s worth it.