One of those who benefited from HootSuite's US$165 million Series B financing was venture capital firm Blumberg Capital. HootSuite's latest financing round allowed Blumberg Capital to obtain a 520% return from their initial investment in just four years. Blumberg Capital, an early-stage venture capital firm, was a seed investor and the most significant institutional shareholder in HootSuite.
Blumberg Capital along with Hearst Ventures led the seed financing round of HootSuite back in December 2009. Both firms also participated in the subsequent financing round in 2011. Blumberg Capital had been the biggest institutional HootSuite shareholder until today's Series B funding. The financing was led by Insight Venture Partners along with participation from Accel Partners and an existing investor, OMERS Ventures.
"I congratulate Blumberg Capital on their success with HootSuite, which demonstrates what many of us have known for years - that Blumberg is often the first institutional investor to identify and fund savvy entrepreneurs with truly innovative ideas. I'm familiar with many of the other companies in Blumberg's portfolio, and HootSuite is just one of several that could generate very large returns for the firm," a partner with Institutional Venture Partners, Dennis Phelps, commented on Blumberg Capital's success.
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