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our thesis at the time was you know A10 billion company does not exist in marketing software because it didn't need to exist before it was very artsy craftsy kind of discipline and now it's a data driven discipline so someone will create a massive sap SEO style software company that marketing
if we end up you know crashing and burning it won't be uh it won't be murder it'll be essentially a form of suicide it'll be self- imploding it's like the culture didn't work something broke
Um, so we get all the, and it's just a lot of fun because I'm a big believer in, in, in terms of product development and fast iterations, short feedback loops, being able to act on things. And we have thousands of customers, you know, you know, joining every, um, every month, you're able to then kind of, um, kind of get that feedback very consistently, get ideas in kind of iterate on the product.
And so HubSpot has, you know, 170,000 plus customers now, right? And if, had we been in the enterprise market, that would have been more like 1700, right? Like, uh, multiple orders of magnitude difference.
One thing that makes HubSpot, um, kind of noteworthy and remarkable is for all of our 17 years, we've been focused on the SMB market. Um, you know, despite every quarter since our existence, everyone always asks us, including our investors and would be investors like, okay, it's fine that you started an SMB, but what's the plan to go into the enterprise? Because that's kind of a natural, uh, I think of this, uh, reverse gravity that happens in software where, um, outside of any kind of intervent
HubSpot is now 17 years old, so it's been a while time flies, uh, and they grew up so quickly. Um, and we're about 7,000 employees, um, and as you noted, it's a publicly traded, a $25 billion market cap based on which week you look. Um, so, and that's, and it's been, uh, like interesting during, you can talk about kind of the pre IPO times and going through the IPO process, um, and our, our kind of primary offering is we offer a CRM platform. So it consists of, uh, marketing, sales, service, sof
yeah they are and why is that um they have the inventory so if you I mean most people still use Google the market share and the search engines has not changed meaningfully in um you know like ever actually um a long long time so it's uh that's where customers are going and and Google's you know done a great job the original um the original model kind of worked and um it's trackable and small businesses kind of get it you get immediate feedback so that's why um that's why small businesses do it u
Google Health was launched what like five years ago six years ago and they sh it down
Google really came in and changed that market with their free product offering
the thing that keeps me up is that um if we end up you know crashing and burning it won't be uh it won't be murder it'll be essentially a form of suicide
if we end up you know crashing and burning it won't be uh it won't be murder it'll be essentially a form of suicide it'll be self- imploding it's like the culture didn't work something broke
we're about 8500 customers now
marketing industry is huge we have 8,500 customers there are millions of businesses that should be doing whether they by hopspot or something else should be doing is it really Millions yeah it's Millions it's Millions so you predict you haven't hit 1% not even not even close we haven't scratched the surface
then we rais another $12 million within a year after that
when we raised our series a we raised $5 million
we've raised a little over 100 million now
it's one of the things that's made HubSpot you be the modest success it is so far
we have this uh relatively rare thing at HubSpot ... on that Wiki WE Post just about everything cash balance board decks wow notes from the board deck W anything
the data shows that these kinds of people tend to be happier than these kinds of people
whether we designed it or not we have a culture here
the thing we Lear Learned was people were exceptionally happy at HubSpot right and the most common reason given was the other people at HubSpot
about 450 a little over 450
we have customers on annual contracts we have customers that are monthly yeah oh and they choose what they want
the data that we get from the someone didn't cancel is worth much more to us than the cash value of someone who paying us up front because if they paid us for a year and they signed the contract if they really thought the product sucked we wouldn't know that for another 12 months
starts at $200 a month and goes up to about 3,000 or so um up from there but yeah and the majority of the clients towards the $200 or towards the $300 how does it uh break down the average is probably around 5600 so somewhere in that range wow so that's a that's not an insignificant spend for a small business but it's an insignificant span for a mediumsized business yeah so our sweet spot customer someone a company with between 20 and let's say 200 employees somewhere in that range so it's in it
we don't uh support PPC within HubSpot which is uh oh really we don't support uh paid marketing actually because we're we're maniacally uh passionate about and this might change over time but around inbound marketing which is you know for all the money that's being spent on you know things like PPC and billboards and trade Journal ads and those kinds of things uh we think businesses are much better off just invest investing in content and pulling their customers in versus kind of blasting their
we have a essentially a lightweight CRM like a contact system um which a lot of our small business customers just use as their CRM because they're just moving up from spreadsheets essentially and it's good enough and we have a mobile client and it's uh yeah it's been reasonably popular
our thesis at the time was you know A10 billion company does not exist in marketing software because it didn't need to exist before it was very artsy craftsy kind of discipline and now it's a data driven discipline so someone will create a massive sap SEO style software company that marketing
I think one of the things that makes uh makes Market exciting both HubSpot and all the SAS businesses is that now we can get to a body of customers that was just impossible to really reach
the idea and HubSpot was to kind of this integrated platform that allowed mere mortals small businesses to kind of do in what we call inbound marketing to be able to pull customers in instead of doing outbound marketing advertising
hubspot's about uh 6 and 1/2 years old and the idea behind HubSpot was to create a marketing platform and the the idea was we were looking at um so we were both grad school students my co-founder and I met at MIT and the observation was that this kind of this thing called the internet was happening and the old school marketing methods were just weren't working like advertising