In the first three quarters of 2024, Capitalia reported a turnover of EUR 1.15 million and a loss of less then EUR 10 thousand. Operating revenue remained stable, however, administrative costs increased resulting in a small operating loss. The increased costs are associated with building up the sales team and IT development capacity. We expect the consolidated revenue to grow in Q4 and profit to be achieved as the consolidated portfolio under management is growing strongly and at the moment of reporting reached a record of over EUR 25 million. Financing activity remained stable in the third quarter of 2024 and our issued funding amount was the same as in Q2. Our investor base has grown strongly by 15% over the third quarter and more than half of this growth comes from outside of Baltic countries.
On key events
In the third quarter of 2024, we managed to issue a funding amount of EUR 4.7 million (EUR 4.7 million in the second quarter of 2024). Among the financed businesses during this period were, for example, such companies as Agrocredit Latvia, SIA (finance), Storent, SIA (construction equipment rental), Traktoriem, SIA (machinery repair and trade).
In alternative fund management, we have made 3 new investments from our cost-efficient Baltic bond fund and acquired bonds of Fern group (engineering solutions), Summus capital (real estate), and Auga group (agriculture). Our venture capital fund investment period has ended, and no realizations made in the last quarter. We had launched a new feeder fund - Siena Secondaries Feeder Fund. With this we provided opportunity for our investors to participate in the second fund of Siena with a lower minimum investment amount and slower capital calls. Siena specializes in late stage pre-IPO startups in the Nordics & CEE region which serves as addition to our early stage VC co-investment fund and also Change ventures feeder fund.
On plans for the next quarter
The last quarter of 2024 started with strong business financing activity and October tracking to reach a record monthly funding volume so far. We are onboarding the first institutional investors, a local investment bank, which will significantly strengthen our funding capacity. We continue implementing changes and improvements on our crowdfunding platform. Building up our sales team is slower than expected, but continues to achieve a stronger outreach both to potential borrowers as well as to new investors.
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