Despite a pause in investments by the state-led Fund of Funds as its active investment mandate recently concluded, the landscape for early-stage local startups remains promising with alternative funding and mentorship programs emerging. Leading the charge, local VC firms, Eleven and Launchub Ventures, have commenced the year vigorously, finalising multiple agreements already. All the while, seasoned entrepreneurs are nurturing the ecosystem. A notable initiative is Appolica's launch of its startup studio, aimed at funding and overseeing the development of four projects, aiding them in attracting investors for sustained expansion.
Here is a comprehensive review of the recent deals and updates in the startup scene over the last two months.
Eleven Ventures invests in Turkish startup Cognitiwe
Kicking off the year with strategic investments, Eleven Ventures has allocated 400k euro to Cognitiwe, a Turkish AI startup tackling inefficiencies in the food retail sector. Cognitiwe excels in deploying Predictive Vision AI software to aid manufacturers and retailers in minimizing food waste. With operations expanding across over 15 countries, Cognitiwe is now eyeing the Bulgarian market, powered by a recent injection of 1 million dollars from its latest funding round.
In addition, Eleven is gearing up for the second instalment of its Eleven Alpha program, set to begin this May. The three-month accelerator will welcome startups at various development stages, offering 300k euro in funding and a tailored growth plan in return for a 10% equity stake in each company.
LAUNCHub Ventures closes two deals
Overseeing a fund of 74 million euros, sourced from the European Investment Fund (EIF), the World Bank, and private investors, LAUNCHub has closed two deals this year - a reinvestment in Collosyan, a Hungarian innovator in AI-generated video content, as well as an initial injection of 1.6 million euros to GlycanAge, a biotech firm based in Newcastle. The company specializes in analyzing biological markers, specifically glycans, through blood samples. This analysis enables clients to ascertain their biological age, which may vary from their chronological age, offering insights into their general health and ageing process.
Appolica's startup studio
Among local companies that aim to support startups get off the ground is Appolica, a Sofia-based software company that develops mobile applications for corporate clients, and recently launched its own Venture Studio. The initiative sees Appolica committing to invest 600k euro across four startups over the course of 2024, aiming to nurture their ideas from conception to product creation and subsequently attracting further investments.
The program is expected to span over the course of approximately one year, during which Appolica will acquire a 10-20% equity stake in each of the companies. While the focus is primarily on startups operating within the realms of the future of work, fintech, and climate technology, Martin Markov, the co-creator of Venture Studio, emphasizes a broader insight, and all ideas with potential will be considered.
TokWise attracts 3 million
In 2018, three friends with no prior experience in startups decided to take a risk and offer a product in a market that needed digitalization - the energy market. Today their company's software uses a SaaS model that helps green energy producers offer their services on the energy market without intermediaries.
TokWise is one of the many green solutions that managed to attract investments although the European VC market has drastically decreased pumping money across new projects. The Bulgarian-founded project managed to pull a 3 million euro funding round, of which 2.7 million came from the German renewable energy company Encavis, which has one of the biggest green portfolios in Europe and holds an 18-percent market share. The financial support will be used to build a sustainable business that does not count on exponential growth for its success.
Despite a pause in investments by the state-led Fund of Funds as its active investment mandate recently concluded, the landscape for early-stage local startups remains promising with alternative funding and mentorship programs emerging. Leading the charge, local VC firms, Eleven and Launchub Ventures, have commenced the year vigorously, finalising multiple agreements already. All the while, seasoned entrepreneurs are nurturing the ecosystem. A notable initiative is Appolica's launch of its startup studio, aimed at funding and overseeing the development of four projects, aiding them in attracting investors for sustained expansion.
Here is a comprehensive review of the recent deals and updates in the startup scene over the last two months.
