Traditional Capital Raising - Europe

Europe

The Total Capital Raised in Europe's Traditional Capital Raising market market is expected to reach €21.39bn in 2025.
Venture Capital is set to lead the market with a projected market volume of €17.57bn in 2025.
When compared globally, the United States will generate the highest Capital Raised at €153,300.0m in 2025.
In Europe, traditional capital raising through IPOs in the capital raising market is experiencing a resurgence, attracting both local and international investors.

Key regions: Israel, Brazil, United States, Europe, United Kingdom

Marché

Région

Comparaison de régions

Monnaie

Analyst Opinion

The Traditional Capital Raising Market in Europe is facing a moderate decline, influenced by factors such as tightening monetary policies, increased investor caution, and shifting priorities towards more sustainable investments, impacting overall funding dynamics.

Customer preferences: Investors in Europe are increasingly prioritizing sustainable and socially responsible investment opportunities, reflecting a broader cultural shift towards environmental consciousness and social equity. This trend is particularly pronounced among younger demographics, who are more likely to engage with companies that align with their values on sustainability and corporate responsibility. Additionally, the rise of digital platforms has made it easier for investors to access and evaluate these opportunities, further influencing funding dynamics within the Traditional Capital Raising Market.

Trends in the market: In Europe, the Traditional Capital Raising Market is experiencing a significant shift towards sustainable finance, with an increasing number of companies seeking green bonds and ESG-compliant funding options. This trend is driven by a growing demand from institutional investors for transparent, responsible investment opportunities that align with global sustainability goals. Additionally, the emergence of crowdfunding platforms is democratizing access to capital, enabling startups and SMEs to attract funding from a broader base of socially conscious investors. These developments are reshaping funding strategies, compelling traditional financial institutions to adapt or risk losing market share.

Local special circumstances: In the United Kingdom, the Traditional Capital Raising Market is heavily influenced by the strong regulatory framework supporting green finance, encouraging firms to issue sustainability-linked bonds. Germany's robust industrial base is driving demand for ESG-compliant investments, with a cultural emphasis on environmental responsibility shaping corporate funding strategies. In France, the government's commitment to the Paris Agreement fosters a vibrant market for green bonds, while Iceland's unique geographical challenges have spurred innovative funding solutions aimed at sustainable development, reflecting local priorities in capital allocation.

Underlying macroeconomic factors: The Traditional Capital Raising Market in Europe is significantly shaped by macroeconomic factors such as regulatory frameworks, economic stability, and fiscal policies. In countries like the UK, a strong regulatory support for green finance enhances investor confidence, while low interest rates facilitate corporate bond issuance. Germany's economic resilience and emphasis on sustainability drive the demand for ESG-compliant investments, aligning with global trends towards responsible investing. Meanwhile, France's fiscal policies promoting green initiatives create a favorable environment for green bonds, and Iceland's innovative funding mechanisms address unique local challenges, reflecting broader shifts towards sustainable capital allocation across Europe.

Methodology

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on the amount of capital raised, the average deal size, and the number of deals.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use data from OECD, annual financial reports of key players, industry reports, third-party reports, publicly available databases, and survey results from primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, CPI, number of small and medium-sized enterprises (SME), and new businesses registered (number). This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption. The scenario analysis is based on a Monte Carlo simulation approach generating a range of possible outcomes by creating random variations in forecasted data points, based on assumptions about potential fluctuations in future values. By running numerous simulated scenarios, the model provides an estimated distribution of results, allowing for an analysis of likely ranges and confidence intervals around the forecast.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.