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HubSpot Announces Partnership to Help Startups Raise Funds
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HubSpot Announces Partnership to Help Startups Raise Funds

Customer relationship management (CRM) platform HubSpot (NYSE: HUBS) recently revealed that it has entered into a partnership with alternative financing platform Pipe to provide fee-free funding of up to $100 million to HubSpot for Startups customers.

Following the news, shares of the company showed impressive gains of 5.8% on Tuesday. The stock pared its gains slightly to close at $517.84 in the extended trading session.

Running a startup smoothly and raising funds at the same time is an arduous task for many founders. To alleviate this problem to some extent, HubSpot and Pipe have come together.

As per the agreed terms, while HubSpot for Startups customers will gain access to fee-free financing on Pipe’s platform to scale their businesses, Pipe customers will receive a 30% discount on HubSpot’s CRM Suite.

Management Commentary

The SVP of Corporate & Business Development at HubSpot, Andrew Lindsay, said, “At HubSpot, we know that growing startups need marketing, sales and service skills; the right tools to implement these skills; and the capital to invest in these strategies. This new partnership with Pipe deepens our commitment to helping young startups via quick and easy access to the capital they need to scale.”

Analyst Rating

Recently, Stifel Nicolaus analyst J. Parker Lane reiterated a Buy rating on the stock. The analyst, however, lowered the price target from $850 to $700, which implies upside potential of 34.5% from current levels.

According to the analyst, the supply chain disruptions and the high energy prices prevailing due to the geopolitical tensions are likely to be headwinds for the company in the near future.

Consensus among analysts is a Strong Buy based on 17 Buys and two Holds. HUBS’ average price target of $698.42 implies upside potential of 34.2% from current levels. Shares have gained 19.5% over the past year.

Website Traffic

TipRanks’ Website Traffic Tool, which uses data from SEMrush Holdings (SEMR), the world’s biggest website usage monitoring service, offers insight into HubSpot’s performance this quarter.

According to the tool, the HubSpot website recorded a 0.30% monthly rise in global visits in February, compared to the same period last year. Further, HubSpot’s website traffic has grown 20.37% year-to-date, compared to the previous year.

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