hotglue Secures $1.5M Seed Funding - Developer Connectivity

Hotglue Secures $1.5 Million Seed Funding

Hotglue, a nascent startup focused on simplifying connections for developers to business applications – such as Salesforce – has announced the completion of a $1.5 million seed funding round. Uncommon Capital spearheaded the investment, alongside contributions from a collective of angel investors.

The company was founded by Hassan Syyid, serving as CEO, and David Molot, the CRO. Both founders are 20 years old and made the decision to leave the University of Maryland last year to dedicate themselves fully to developing their startup.

Addressing Developer Integration Challenges

Syyid detailed that the impetus for their venture stemmed from a need for a developer-centric product. This product aims to streamline the creation of integrations with prominent business applications including Salesforce, QuickBooks, and HubSpot.

Currently, the team has developed 250 connectors, leveraging the open-source Meltano project as a foundation.

“Developers often encounter difficulties when accessing business data from its source. Whether it’s a Salesforce or QuickBooks account, data access can present numerous hurdles. We provide a readily embeddable solution to overcome these challenges,” Syyid explained.

A Unique Focus on Engineering Teams

While data connectors for business systems are not novel, Syyid emphasizes that Hotglue distinguishes itself through its specific focus on developers.

“Existing data integration products, like FiveTran or Stitch, typically target consolidating a company’s internal data into a data warehouse. Our primary users, however, are engineering teams,” he clarified.

Origins of the Idea

The concept for Hotglue originated during Syyid’s internship at an accounting startup. He observed customers struggling with QuickBooks data access and limitations imposed by API call allowances.

This led him to create a connector to manage these issues effectively.

From University to Full-Time Startup

Syyid subsequently connected with Molot, and together they decided to pause their academic pursuits to pursue their entrepreneurial vision. Initially, their parents expressed concerns about this decision.

However, they agreed to a semester-long leave to focus on building the company. Both founders returned home and dedicated themselves to the project.

Acceptance into the Y Combinator Summer 21 cohort proved pivotal in gaining their parents’ confidence.

“We initially took a gap semester, and then getting into Y Combinator reassured our parents that this was a viable path. This provided them with the confidence to support our decision,” Molot stated.

Learning and Growth at Y Combinator

Their participation in Y Combinator provided valuable lessons in business development, customer engagement, and connector creation. This experience enabled them to address the specific challenges faced by their target developer audience.

It also equipped them with the knowledge to establish a sustainable business model and revenue stream.

“We’ve invested significant time in expanding our internal knowledge base and utilizing tools to gain a comprehensive understanding of key business metrics and concepts,” Molot added.

Content Marketing and Early Traction

The founders also prioritized content creation, publishing articles on Medium about data integration. This content marketing strategy helped raise awareness of Hotglue and refine their product development based on user feedback.

Currently, Hotglue serves approximately 15 customers, with a similar number in the sales pipeline.

The company is generating revenue and experiencing a 50% month-over-month growth in active users.

The seed funding will be used to expand the engineering team and further develop the platform.