Ada Ventures
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Ada Ventures

Ada Ventures’ investment in Huboo

Huboo’s seed round was announced in Techcrunch last month, but we’ve been invested in the company for a year now.

Huboo built proprietary, full-stack, multi-channel fulfilment software and systems, which they now sell to hundreds of e-commerce clients that they service from their warehouse facilities in Bristol. The Covid-19 related lock-down we’re all experiencing has shone a light on this special company and their amazing team.

The uncontested fulfilment market (the market nobody wanted or could afford to work in, until Huboo) is ~£1bn of fulfilment revenues in the UK and another £6bn across the rest of Europe and the US. The wider SMB space, where Huboo also works, is around £27bn in the same territories (£4bn in the UK).

What was the process that led to investment?

In early 2019 a Bath-based angel introduced me to Martin, one of Huboo’s two founders. At that time Check and I were investing from a syndicate that we ran, ahead of closing our fund. We introduced Martin to a few seed funds that we like to work with and quickly co-invested (via our syndicate) with our friends at Episode 1.

The business grew rapidly. Very rapidly in fact. There was clearly a massive gap to fill: serving smaller e-commerce businesses with fit-for-purpose fulfilment software. Think FBA, but with real customer service and a software-driven product that powers revenue growth in the underlying customer businesses.

As a result, Episode 1 and our syndicate invested again, joined by True and Maersk Growth and, earlier this year, our fund Ada Ventures.

Why does Huboo fit the Ada Thesis and what got us excited?

Looking Forward

The situation we all find ourselves in is unprecedented (sorry!). Huboo is now an even more valuable partner to its customers and, ultimately, to all of us at home ordering our goods online. Current trading and continued growth at Huboo, during lock-down, has shown us how essential e-commerce businesses are to maintaining some normality of modern life, and economic activity. Huboo’s software and systems now serve hundreds of SME clients, processing millions of transactions and it’s our belief that a hugely valuable company is being built in Bristol.

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