Сподели
State of the Market: Reality Check and Silver Linings
2024 proved to be the most challenging year for European venture capital since the 2021 boom. Total deal value declined by 7.9% year-over-year, while deal count decreased by a more substantial 23.3%. This points to investors favoring quality over quantity – putting more money into fewer, more promising deals.
Despite these headwinds, several positive signals emerged by year-end:
📌 AI continues its winning streak – AI investments reached €14.6 billion in 2024, representing 25% of all European VC funding (with 24.1% YoY growth). Companies with AI at their core now command a clear valuation premium over their non-AI peers – ranging from 21% at seed stage to 59% at Series B.
📌 Exit paths are reopening – After years of limited liquidity, 2024 marked the comeback year for exits, with exit value increasing by 23.7% YoY. Half of the biggest exits last year were in sectors where Eleven focuses.
📌 Private equity steps in – More than 20% of venture exits now come through buyout firms rather than traditional IPOs or strategic acquisitions. This trend has been growing steadily at 5.5% annually since 2014.
📌 Valuations have normalized – Private company valuations have finally adjusted to more sustainable levels after the 2021 peak. The median multiple has settled around 5.2x in 2024, similar to the 2014-2016 period.
An interesting dynamic is the concentration of funding – the top 30 VC funds raised 75% of all venture capital in the US last year. This creates both challenges and opportunities for emerging fund managers and founders seeking capital.
Eleven Capital Portfolio: Solid Growth Despite Market Turbulence
Looking at the 2024 fund performance, we continued our sustainable growth. Here is what the numbers say:
- Net Asset Value (NAV) reached €23.1M, increasing by €4.1M compared to 2023
- Dividend distribution of €0.71M in 2024 (compared to €0.47M in 2023)
Only 24% of the fund’s invested capital went to its highest performers, yet these companies now account for 71% of the fund’s total value. This highlights how a small group of high-performing investments is driving most of the returns.
Looking at what’s in a share, the largest value contributors were:
- EnhanCV R&D (26.8%)
- Businessmap (17.9%)
- Sensika (17.6%)
- MClimate (10.1%)
The top 8 portfolio companies continued their strong growth trajectory, with combined revenues increasing to €30.28M in 2024 (up from €21.25M in 2023). These companies now account for 83% of total portfolio revenue, demonstrating increasing concentration in value creation.
Q4 2024 was particularly strong, with core portfolio companies generating €9.9M in quarterly revenue and showing remarkable 57% growth compared to Q4 2023.
Portfolio Company Updates
Everyone’s favorite part of the webinar are the portfolio company updates. This time, we heard directly from two of our portfolio startups:
Lyubomir Yanchev, Founder and CEO of MClimate, shared the company’s progress in making buildings smarter and more energy-efficient. Key highlights from 2024 included:
- 20% revenue growth year-over-year
- Maintained profitability while investing in growth
- Achieved multiple quality certifications (ISO 9001, 14001, 27001)
- Passed a rigorous automotive industry audit (VDA 6.3 standard)
- Secured a major OEM manufacturing contract with a multi-billion dollar company
- Launched three new products including a battery-free CO2 sensor and advanced relays
MClimate paid out a dividend of €1M (BGN 2M) in 2024, contributing significantly to Eleven Capital’s own dividend distribution.
For 2025, the company plans to focus on:
✔️ Expanding their white-label partnerships with major brands
✔️ Automating production for efficiency
✔️ Obtaining CCC certification for more products to enter the US market
✔️ Introducing three new thermostat products
✔️ Growing their software-as-a-service revenue
✔️ Enhancing their carbon accounting to measure product carbon footprint
Branislav Nikolic, Founder and CEO of Ayo, shared about the progress of their circadian health wearable and some growth numbers:
- Revenue of $1.62M, representing 53% growth YoY
- Global Ayo product sales approaching $4.6M
- Signed five major strategic partnerships
- Initiated six new clinical studies
- Published research with the US Department of Defense
The company has made significant inroads into several key markets:
✔️ Government & enterprise (official supplier to the US Air Force)
✔️ Sports & wellness (partnership with NBA’s Orlando Magic)
✔️ Corporate & aviation (program with Qantas Airlines for pilot and crew fatigue management)
✔️ Medical research (studies with City of Hope, Dana-Farber, Wake Forest University)
✔️ Luxury hospitality (selected for Four Seasons Hotels’ wellness program)
Looking ahead to 2025, Ayo plans to:
1️⃣ Scale their US Air Force contract into broader defense wellness programs
2️⃣ Enhance their AI-driven analytics for personalized light therapy
3️⃣ Introduce subscription models to drive recurring revenue
4️⃣ Partner with sleep clinics and doctors to reach the estimated 1,000 US sleep professionals showing interest in their technology
Key Takeaways for Investors
✅ Despite continued market challenges, Eleven Capital’s portfolio demonstrated strong resilience and growth in 2024.
✅ The concentration strategy is working, with top companies growing faster and contributing an increasing share of total value.
✅ The fund’s NAV continues its upward trajectory, with strong potential for increased dividends in 2025.
✅ The current market cap trades at a discount to NAV (€7.93 per share vs €10.04 NAV per share).
✅ Portfolio companies continue to gain traction in their respective markets, increasing the probability of successful exits in the medium term.
