HUBSHubSpot, Inc.

HubSpot gives small and mid-sized businesses one system for marketing, sales and customer support.

Large enterprise systems are beyond such a customer: they are expensive and require implementation consultants. The company offered the opposite — a product a small firm configures itself, starting free and adding modules as it grows. Sales come from the bottom up, through the users themselves, rather than through negotiations with management.

Revenue is subscription-based and grows two ways: new customers and selling them additional modules. The weak point is the client base itself: small businesses close and economise first in a downturn, so churn here is higher than at enterprise software vendors. Risks: the small business economy and competition from large platforms. The company pays no dividend.