Digital Capital Raising - Southeast Asia

Total transaction value in the Digital Caiptal Raising market is projected to reach US$1.73bn in 2024.
Total transaction value is expected to show an annual growth rate (CAGR 2024-2028) of 7.41% resulting in a projected total amount of US$2.31bn by 2028.
The largest market is Crowdlending (Business) with a projected total transaction value of US$1.40bn in 2024.
From a global comparison perspective it is shown that the highest cumulated transaction value is reached United States (US$35.37bn in 2024).

Definition:

The Digital Caiptal Raising segment relates to digital financial services for business customers, private borrowers and business customers. Included are Crowdinvesting models, which focus particularly on start-ups exchanging investment for company shares (equity-based), and Crowdfunding solutions, which are used for non-monetary compensation, for example product launches, music, art & film financing (reward-based). The market also includes bank-independent loan allocation for SMEs (Crowdlending) and for personal loans (Marketplace Lending or so-called Peer-to-Peer lending) through private or institutional investors via online platforms. In view of processing complexity, this market is focused on small and medium-sized enterprises (SMEs), freelancers and private persons. Bank financing is not considered, neither are any financial aspects that reach beyond the scope of small and medium-sized enterprises or donation-based Crowdfunding models. Bank financing is not considered, neither are any financial aspects that reach beyond the scope of small and medium enterprises or donation-based Crowdfunding models.

Structure:

Digital Capital Raising consists of Crowdfunding, Crowdinvesting, Crowdlending and Marketplace Lending.

Additional Information:

The market comprises of transaction values, campaigns, average funding per campaign.

Alternative financing for SMEs and freelancers
Equity-based Crowdfunding (or Crowdinvesting)
Reward-based Crowdfunding (or Crowdfunding)
Alternative lending for SMEs and freelancers (bank-independent loans)
Online marketplaces for personal loan applications and private investors
Peer-to-Peer loans with interest rates depending on internal credit scoring of the platform provider

Traditional bank loans
Traditional venture capital investments by institutional or private investors

Current trends in digital capital raising outside of crowdfunding, crowdlending, marketplace lending, and crowd investing markets include the rise of online angel investing platforms, the use of social media and other digital marketing channels to reach potential investors, and the emergence of digital security offerings such as revenue-sharing agreements and digital equity.
The growth factors driving the expansion of digital capital raising include the increasing acceptance and adoption of online financial transactions, the growing number of high-net-worth individuals seeking alternative investment opportunities, and the need for businesses to access funding quickly and efficiently.
A market development trend in digital capital raising is the convergence of traditional finance and digital platforms. This includes established financial institutions partnering with digital capital raising platforms to offer new products and services, as well as the development of hybrid models that combine the benefits of traditional financing with the speed and accessibility of digital platforms.

Data coverage:

The data encompasses B2C enterprises. Figures are based on transaction values / revenues / assets under management and user data of relevant services and products offered within the FinTech market.

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 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, consumer spending, population, internet penetration, smartphone penetration, credit card penetration, and online banking penetration. 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.

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.

This report presents a comprehensive analysis and additional information on the Digital market, in a PDF format.