Market Insights Financial Capital Raising

Traditional Capital Raising - Worldwide

Worldwide

The Total Capital Raised in the Traditional Capital Raising market market worldwide is expected to reach €296.30bn in 2024.
Venture Capital is set to lead the market with a projected volume of €256.70bn in 2024.
When compared globally, the United States is anticipated to generate the highest Capital Raised amount ( €145,900.0m in 2024).
In the traditional capital raising market worldwide, the United States continues to lead with innovative financial instruments and robust regulatory frameworks.

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

Marché

Région

Comparaison de régions

Monnaie

Analyst Opinion

The Traditional Capital Raising market is experiencing significant growth and development worldwide.

Customer preferences: Customers in the Traditional Capital Raising market are increasingly seeking out alternative sources of funding for their businesses. This is driven by a desire to diversify their funding options and reduce their reliance on traditional banking institutions. Additionally, customers are becoming more comfortable with the idea of crowdfunding and peer-to-peer lending, as they offer a more democratic and inclusive approach to capital raising.

Trends in the market: One of the key trends in the Traditional Capital Raising market is the rise of crowdfunding platforms. These platforms allow individuals and businesses to raise capital from a large number of investors, often in exchange for equity or other forms of ownership. This trend is particularly evident in countries with robust entrepreneurial ecosystems, where startups and small businesses are seeking alternative sources of funding to fuel their growth. Another trend in the market is the increasing use of peer-to-peer lending platforms. These platforms connect borrowers directly with lenders, cutting out the middleman and reducing the cost of borrowing. This trend is driven by the growing demand for affordable and accessible credit, particularly among individuals and small businesses that may have difficulty obtaining loans from traditional banks.

Local special circumstances: In the United States, the Traditional Capital Raising market is experiencing significant growth due to the passage of the JOBS Act in 2012. This legislation relaxed restrictions on crowdfunding and allowed non-accredited investors to participate in private offerings. As a result, crowdfunding platforms have flourished in the US, providing a new avenue for entrepreneurs and small businesses to raise capital. In China, the Traditional Capital Raising market is driven by the rapid growth of the internet and mobile technology. Online crowdfunding platforms have gained popularity, particularly among young and tech-savvy investors. Additionally, the Chinese government has been supportive of the crowdfunding industry, providing regulatory clarity and creating a conducive environment for growth.

Underlying macroeconomic factors: The development of the Traditional Capital Raising market is also influenced by underlying macroeconomic factors. For example, low interest rates in many countries have made traditional bank lending less attractive, leading businesses and individuals to seek alternative sources of funding. Additionally, the global rise of entrepreneurship and the gig economy have created a growing demand for flexible and innovative funding solutions. In conclusion, the Traditional Capital Raising market is experiencing significant growth and development worldwide. Customers are increasingly seeking out alternative sources of funding, such as crowdfunding and peer-to-peer lending platforms. This trend is driven by a desire to diversify funding options and reduce reliance on traditional banks. Local special circumstances, such as regulatory changes and technological advancements, are also contributing to the growth of the market in specific countries. Underlying macroeconomic factors, such as low interest rates and the rise of entrepreneurship, are further fueling the development 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.