Introduction
Huboo Technologies Limited (now Hub Realisations Limited Company number 09727464) obtained more than £118 million in equity funding and received multiple millions in loans but failed to generate any profits. Investors maintained their financial support for the business despite multiple obvious warning indicators. What motivated investors to provide funding to a company that failed to succeed?
The Red Flags Investors Should Have Seen
Continuous Losses Despite Growth
2022: £47.1 million loss on £17.7 million revenue
2021: £13.3 million loss on £13.7 million revenue
2020: £3.5 million loss on £4.2 million revenue
The investors maintained their support for Huboo even though the company lacked any visible strategy to become profitable.
Overreliance on Investor Funding
The business operated at a rate similar to a cash-consuming startup rather than a stable enterprise.
The organization required fresh funding injections to maintain basic operations.
Missed Break-even Targets
Huboo repeatedly stated its path to profitability was on schedule.
The company experienced increasing losses instead of improving its financial situation during each announcement.
Lack of Transparency with Stakeholders
Investors received complete information about liquidity crises only after the situation became unmanageable.
The failure to pay December 2024 payroll should have served as the definitive warning sign for investors.
Why Did Investors Stay In?
Some investors anticipated a lucrative acquisition deal to recover their investment losses.
The optimistic projections presented to investors turned out to be false.
Investors failed to properly examine the financial statements during their due diligence process.
Conclusion
The collapse of Huboo stemmed from inadequate investor supervision rather than poor leadership. The newly rebranded Huboo Tech Limited faces an important question about whether investors will learn from previous errors.
