The Investors Who Backed Huboo – What Were They Thinking?

Between its founding and its eventual collapse into administration, Huboo Technologies Limited raised over £118 million in equity investment. At first glance, this level of financial backing implies a company with vast potential. But looking at the numbers and strategic decisions, one has to ask: what were the investors thinking?

This post takes a deep look at the VCs, institutional backers, and private investors who funded Huboo through years of multi-million-pound losses — and what led them to ignore the warning signs.

1. The Big Backers

Huboo attracted significant funding from institutional investors, including:

• Stride.VC
• Episode 1 Ventures
• Maersk Growth
• HSBC Ventures

These aren’t inexperienced players. They’ve backed dozens of successful tech ventures. So why did they miss — or dismiss — the red flags with Huboo?

2. The Red Flags They Overlooked

• 2020: £3.5 million loss on £4.2 million turnover
• 2021: £13.3 million loss on £13.7 million turnover
• 2022: £47.1 million loss on £17.7 million turnover

Huboo never posted a profit. Year after year, its financials deteriorated. Its burn rate spiralled. And still, the money flowed in.

Investors might say they were backing growth — but what they were actually funding was unsustainable expansion without operational maturity.

3. Due Diligence or Blind Optimism?

It’s common for VCs to invest based on potential. But in Huboo’s case, the fundamental financial model was never viable. The operational costs far outpaced revenue. Client retention was low. Technical infrastructure was unreliable.

So was this a failure of due diligence — or a case of willful ignorance in pursuit of a unicorn story?

4. The Influence of the “Tech” Narrative

As explored in our last post, Huboo portrayed itself as a logistics technology company. That positioned it favourably for tech-focused VCs, who may have overestimated its capabilities.

The reality? Huboo was a 3PL business with a software wrapper. But investors bought into the idea of disruption without demanding proof of execution.

5. Where Did the Money Go?

With over £100 million raised, one would expect cutting-edge infrastructure and an airtight platform. Instead, reports from clients and insiders suggest:

• Disorganised warehouses
• High staff turnover
• Manual operations
• Unstable software

The money, it seems, went into rapid geographical expansion, aggressive marketing, and surface-level growth — not building a sustainable business.

6. Investors Now Silent

In the wake of Huboo’s collapse and its asset sale for £9, most major investors have remained publicly silent. No accountability. No public review of what went wrong. No statements on lessons learned.

This silence is deafening — and troubling for the broader startup ecosystem.

Conclusion: Chasing Growth, Ignoring Reality

The investors who backed Huboo weren’t naive. But they were willing to ignore reality for the sake of growth metrics. Now, their capital is gone. Their reputations are dented. And the business they funded is a hollow shell with a new name: Huboo Tech Limited (Company No. 16143472).

If there’s a lesson here, it’s that flashy decks and founder charisma should never trump hard numbers and operational integrity.

Next: From failure to rebrand — how Huboo Tech is trying to rewrite history.