HubSpot, a leading customer relationship management (CRM) platform, announced that it has committed $20 million to social impact investing. The company’s first allocation of those funds is a $12.5 million investment in the Black Economic Development Fund, which supports Black-led financial institutions, community centers, anchor institutions, and business transactions. The Fund is managed by the Local Initiatives Support Corporation (LISC), one of the nation’s largest community development financial institutions.
“Earlier this year, we committed to help dismantle systemic racism through meaningful, long-term change. We chose four key pillars – introspection, investment, inclusion, and impact – to guide that work,” said Brian Halligan, co-founder and CEO of HubSpot. “Our goal in investing in the Fund is to support Black communities and foster economic empowerment. We’re proud to join LISC and our fellow investors in this effort to help close the racial wealth gap.”
“This capital will help build a stronger future for Black businesses, families and communities, and fuel a more broadly shared prosperity throughout the country,” said George Ashton, managing director of LISC Strategic Investments, the organization’s fund management arm. “With this investment, HubSpot is leveraging its assets to help make the American economy work better for everyone.”
HubSpot joins PayPal, Netflix, Costco, Square, Dick’s Sporting Goods, and Aflac as fellow investors in the Black Economic Development Fund, which closed today at $175 million. As part of LISC’s Project10X initiative, the Fund will provide capital to Black-led banks, institutions, and businesses and expand economic opportunity in the communities they serve. LISC expects to begin making investments from the Fund in early 2021 in the form of bank deposits, bridge financing, and other financing to Black-led businesses, financial institutions, and anchor institutions.
Today’s news follows HubSpot’s recent announcement that it has partnered with the Howard University School of Business to establish a Center for Digital Business, a new multipurpose space that will facilitate education, collaboration and innovation among students, faculty, staff and business leaders.