Market Insights Financial Capital Raising

Traditional Capital Raising - Japan

Japan

The country in Japan is where Total Capital Raised in the Traditional Capital Raising market market is forecasted to reach €2.22bn in 2024.
Venture Capital leads the market with a projected market volume of €1.98bn in 2024.
When looking at global comparison, the United States will generate the most Capital Raised (€145,900.0m in 2024).
In Japan, the Traditional Capital Raising market is seeing a resurgence in interest from established corporations seeking stable funding sources.

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

Marché

Région

Comparaison de régions

Monnaie

Analyst Opinion

The Traditional Capital Raising market in Japan has been experiencing significant growth and development in recent years. Customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors have all contributed to this positive trajectory.

Customer preferences in Japan have shifted towards traditional capital raising methods due to their reliability and stability. Japanese investors tend to have a conservative approach to investment, preferring low-risk options with steady returns. Traditional capital raising methods, such as initial public offerings (IPOs) and bond issuances, align well with these preferences.

Additionally, Japanese investors value long-term relationships with companies, and traditional capital raising methods provide an opportunity for them to engage with the company on a deeper level. Trends in the market have also played a significant role in the growth of the Traditional Capital Raising market in Japan. One notable trend is the increasing number of IPOs in recent years.

Japanese companies are recognizing the benefits of going public, such as increased visibility, access to capital, and enhanced credibility. This trend has been further fueled by the government's efforts to promote IPOs and make the listing process more streamlined. Another trend in the market is the rise of green and sustainable finance.

As environmental concerns become more prominent globally, Japanese companies are increasingly looking to raise capital for green projects and initiatives. This trend aligns with the government's focus on environmental sustainability and has led to the development of specialized green bond markets in Japan. Investors are showing a growing interest in these green bonds, further driving the growth of the Traditional Capital Raising market.

Local special circumstances in Japan have also contributed to the development of the Traditional Capital Raising market. One such circumstance is the aging population and low interest rates. With an aging population, there is a need for long-term investment options to support retirement and provide stable income.

Traditional capital raising methods, such as bond issuances, offer attractive options for this demographic. Additionally, the persistently low interest rates in Japan have made traditional capital raising methods more appealing. Investors are seeking alternative investment opportunities that offer higher returns than traditional savings accounts or government bonds.

This has led to increased demand for corporate bonds and other debt instruments, driving the growth of the Traditional Capital Raising market. Underlying macroeconomic factors have also played a role in the development of the Traditional Capital Raising market in Japan. The country's stable economy and strong corporate sector provide a favorable environment for capital raising activities.

The government's supportive policies and regulatory framework have further facilitated the growth of the market. In conclusion, the Traditional Capital Raising market in Japan has experienced significant growth and development due to customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors. Japanese investors' conservative approach to investment, the increasing number of IPOs, the rise of green and sustainable finance, the aging population, low interest rates, and the stable economy have all contributed to the positive trajectory of the market.

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.