HULO, a Netherlands-based WaterTech company, has closed a €2.3 million seed round to scale its AI-powered leak detection platform worldwide. The funding will support expansion into key markets and strengthen the company’s capabilities in network analytics, cybersecurity, and customer success.

VP Capital and LUMO Labs co-led the investment, with participation from Vanagon, Rabobank, the Frisian Development Fund (FOM), and the Netherlands Enabling Water Technology fund (NEW-ttt). The round positions HULO to address a problem that affects utilities on every continent: approximately 30% of treated water is lost through aging infrastructure before it reaches consumers.

Why Water Loss Matters Now

Water scarcity is becoming one of the most serious environmental challenges facing communities worldwide. Aging pipe networks leak billions of liters annually, wasting both the water itself and the energy required to treat and transport it. For utilities, this represents massive financial losses and increased pressure on already strained resources.

“Water scarcity is emerging as one of the world’s most pressing environmental constraints, with around 30% of treated water lost globally, often through ageing water network infrastructure,” said Erica van Eeghen, Senior Manager Ventures at VP Capital. “HULO’s ability to detect leaks early, using advanced AI rather than expensive sensors, is exactly the kind of lean, scalable innovation that fits our investment lens. This is a domain where measurable environmental impact and efficiency go hand in hand. We’re glad to join forces with such thoughtful co-investors and a technically sharp founding team.”

Building on Real-Time Data, Not New Hardware

The fresh capital will accelerate deployment in HULO’s focus markets and expand the platform’s technical capabilities. Currently active in the Netherlands, across the EU, the UK, and with initial projects in Latin America, HULO is positioning itself as a practical alternative to traditional leak detection methods.

The company’s software-as-a-service platform analyzes pressure and flow data already collected by water utilities. By combining AI with physics-based models, it identifies leaks, pinpoints their location, and helps operators prioritize responses. Unlike conventional approaches that require expensive sensors or the creation of district metered areas (DMAs), HULO integrates directly into existing systems.

From Reactive Repairs to Proactive Management

Traditional leak detection relies heavily on physical inspections, broad assumptions, or hydraulic modeling that doesn’t account for real-world variations. HULO’s platform learns continuously from operational data, surfacing problems as they develop rather than after significant damage has occurred.

“The future of water infrastructure requires that digital innovation integrates with the operational reality of today’s networks,” said Robbert Lodewijks, co-founder of HULO. “We’re building solutions that are both powerful and practical — enabling water utilities to take action without overhauling their systems.”

This hardware-agnostic approach allows utilities to adopt the technology quickly and at lower cost. It also scales across different network types and geographies, making it viable for municipalities of varying sizes and technical sophistication.

A Team Born from Water Innovation

HULO originated from Wetsus, the institute for Sustainable Water Technology in Leeuwarden, Netherlands. The Dutch city is known for its concentration of water sector expertise and its focus on applied research. The founding team built HULO to bridge the gap between academic innovation and operational utility needs.

The company’s board and leadership bring together technical expertise in AI and hydraulic engineering with practical experience in utility operations. This combination has allowed HULO to design a product that works within the constraints utilities face daily: limited budgets, complex legacy systems, and the need for regulatory compliance.

Dagmar van Ravenswaay Claasen, Senior Partner at LUMO Labs, emphasized the company’s trajectory: “Based on the measurable environmental impact they are already making: the company is on track to help save the equivalent of over 4 million Olympic-size swimming pools every year by 2030.”

Investor Confidence in Critical Infrastructure

The investor group reflects both regional support and international recognition of water infrastructure as a critical sector. VP Capital, a Belgian and Dutch single-family office with over 150 years of history, focuses on impact-first investments in regenerative and circular solutions. LUMO Labs manages a €100 million multi-stage fund targeting technology-driven social and environmental innovations.

Vanagon, a Munich-based fund specializing in sovereign-edge DeepTech, sees water systems as essential European infrastructure. “Water systems are critical infrastructure — and a resilient Europe depends on transparency and fast reaction to prevent malfunctions or even attacks,” said Axel Roitzsch, Co-Founder and General Partner at Vanagon. “With 30% of drinking water in the EU lost due to leakages, the need for AI-powered monitoring is urgent. At Vanagon, we invest in AI-native DeepTech teams tackling exactly these challenges, and HULO is a great example: a team using cutting-edge digital tools to solve one of Europe’s most pressing infrastructure problems.”

Rabobank’s involvement stems from its partnership with Wetsus and commitment to sustainable water management innovations. Meanwhile, FOM and NEW-ttt provide regional capital and connections to the Dutch water technology ecosystem.

“NEW-ttt and FOM have a focus on accelerating innovation in water technology and we are proud to be part of the success of HULO, a great example of Dutch innovation capacity originated from Wetsus, the institute for Sustainable Water technology in Leeuwarden,” said Sybo Zijlstra, Investment Manager. “We believe HULO has both the team and the technology to make lasting impact in saving water globally.”

“Rabobank supports groundbreaking innovations that contribute to sustainable water management. Hulo.ai, developed within the innovation hub Wetsus in Leeuwarden – a strategic Rabobank partner – is creating technology that helps reduce global water losses. We proudly support their mission to make a lasting impact.”

Origianl Creator: Ekaterina Pisareva
Original Link: https://justainews.com/companies/funding-news/ai-startup-hulo-raises-e2-3m-seed-funding-round/
Originally Posted: Tue, 21 Oct 2025 10:13:07 +0000