The challenging funding environment in 2024 has driven several startups to insolvency, particularly those unable to raise capital or achieve profitability. Notable casualties span sectors like hardware (Northvolt, Lilium), foodtech (Allplants), and fintech, reflecting broader market struggles
 
Companies like Arrival, Cazoo, and Infarm exemplify high-profile failures due to unsustainable growth, debt burdens, or operational inefficiencies. Despite raising substantial funding, they succumbed to market pressures, including rising costs, economic shifts, and competitive challenges.
 
Even promising sectors like mobility (Cake, Vässla) and deeptech (Prophesee) saw setbacks, with companies facing funding delays and project failures. Some, like Lilium, hope for revival through acquisitions, but these cases underscore the fragility of ambitious, capital-intensive ventures in turbulent times.
 
RIP: The startups that went bust in 2024 | Sifte

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Alitalia, Italy’s defunct national carrier, is moving toward full liquidation, with plans to lay off its remaining 2,059 employees during January 2025. This includes over 1,100 flight attendants and 82 pilots. Worker unions, including Cub Trasporti, have requested an extension of the current redundancy fund, proposing it as a bridge for workforce reallocation to Alitalia’s successor, ITA Airways, or related companies like Swissport and Atitech. 

The layoffs coincide with challenges in ITA Airways’ merger talks with Lufthansa. The Italian Economy Ministry has reportedly stalled negotiations over the price adjustment for a 41% stake in ITA Airways, citing poor fourth-quarter performance. Lufthansa has reiterated its commitment to the 2023 contract terms, emphasising compliance with agreed deadlines for its investment in ITA Airways. 

Union leaders have criticised the government for prioritising workforce replacement over relocation, alleging a preference for cheaper labour. The Italian government’s pursuit of a stake sale in ITA Airways to Lufthansa continues as Alitalia’s liquidation and workforce restructuring progress toward completion.

All Alitalia employees to be laid off by 2025 - ch-aviation

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Having previously reported in May 2024 that German air mobility developer Volocopter had announced that they were in financial difficulties, we can now confirm that they filed for insolvency proceedings on 30 December 2024. 

Volocopter GmbH, a German air mobility startup backed by Mercedes-Benz and Honeywell, filed for insolvency on December 30, 2024, citing unsuccessful fundraising efforts. The company plans to maintain operations during proceedings while pursuing additional funding opportunities to sustain its business. Volocopter had ambitious plans to launch its urban air taxi, the VoloCity, in 2025.

The insolvency highlights the financial pressures in the emerging eVTOL industry, where commercialisation remains costly and uncertain. Volocopter’s future depends on its ability to attract new investment while navigating the complex landscape of urban air mobility innovation.

​German air taxi start-up Volocopter files for insolvency | Reuter

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Huboo has been rescued from administration through a buy-out by an investor consortium led by Baaj Capital and Atalla Capital. The company, known for its eCommerce fulfilment services and sponsorship of Bristol's sports teams, employs 600 people and operates across Europe. The buy-out promises a “new chapter of growth” for the company.

Founded in 2017, Huboo grew rapidly, especially during the pandemic, by offering tech-enabled solutions for online order fulfilment. However, the company faced operational disruptions and financial challenges leading up to Christmas 2024, with clients reporting delayed deliveries and a pre-insolvency warning issued. On Christmas Eve, Huboo announced it had entered administration but secured a rescue deal.

The investment consortium plans to support Huboo’s expansion in the UK and Europe, aiming to capitalize on the growing eCommerce market projected to reach $8.09 trillion by 2028. Co-founder Paul Dodd assured stakeholders the investment would safeguard jobs and partnerships while positioning Huboo as a leading logistics partner for merchants and brands.

Source: Bristol Live

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