HubSpot Investment Validates Online Marketing Suite Model For SMBs

I first got to know HubSpot last summer when I was researching for the report: "Interactive Marketing Priorities For SMBs."  Born out of MIT’s Sloan School in 2006, HubSpot is an all-in-one marketing suite for small businesses. It provides blog building, content management, SEO, email marketing, lead management and social media tools, templates, and reporting for marketers at small and medium-sized companies. The model? To provide automated solutions for multiple marketing functions together in an easy-to-use system, tailored for the SMB market. Forrester loves the idea of the online marketing suite, so we think HubSpot’s approach is right-on.

Well, HubSpot just announced today that it has two new investors: Google and salesforce.com.

To me this investment signifies two things:

1)  Google wants to expand its reach into marketing budgets of small companies, many of whom currently use mostly local search. I've said before that I think Google is moving away from its core search business and into expanded media opportunities like television media. I think this investment is further evidence of Google's expanding priorities, now into the SMB market.

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