Capital Raising - Argentina | Statista Market Forecast

The country in Argentina is projected to reach a Total Capital Raised in the Capital Raising market market of US$770.30m in 2024.
Traditional Capital Raising is anticipated to dominate the market with a projected market volume of US$715.40m in 2024.
In global comparison, the United States will lead in Capital Raised generation with US$195.4bn in 2024.
Amid economic challenges, Argentina's Capital Raising market sees a surge in alternative financing options like venture capital and private equity investments.

Definition:

The Capital Raising market refers to the process of raising additional capital to launch, finance, and grow a business or a project. Traditional Bank Loans are not considered in the market.

Structure:

The market consists of two segments:
- The Traditional Capital Raising market refers to traditional venture financial services for startups and emerging companies that do not yet possess a positive track record, but have exceptional growth potential.
- The Digital Capital Raising market refers to digital financial services for business customers and private borrowers.
The market data comprises of the amount of capital raised, number of deals, and average deal size.

Additional information:

Besides Traditional Bank Loans, there are various alternative forms of debt and equity financing that help businesses, especially startups and emerging companies who seek additional funds to support their business' operation and growth. Nowadays, owing to the rapid growth rate of startups and emerging companies, these financial services are more attractive and popular.
Key players in this market are companies such as Squoia Capital, Hercules Capital, and Indiegogo

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Venture Capital
Venture Debt
Digital Capital Raising

Traditional Bank Loans

The Capital Raising market in Argentina has been experiencing significant growth in recent years. Customer preferences have shifted towards alternative forms of financing, leading to an increase in the demand for capital raising services.

This trend can be attributed to several factors, including the local special circumstances and underlying macroeconomic factors in the country. Customer preferences in Argentina have been influenced by a desire for more flexible and accessible financing options. Traditional lending institutions, such as banks, have become more stringent in their lending practices, making it difficult for small and medium-sized enterprises (SMEs) to access the capital they need.

As a result, entrepreneurs and businesses have turned to alternative sources of funding, such as crowdfunding and peer-to-peer lending platforms. These platforms offer a more streamlined and efficient process for raising capital, appealing to customers who value convenience and speed. Another trend in the market is the growing popularity of equity crowdfunding.

This form of capital raising allows individuals to invest in early-stage companies in exchange for equity ownership. Equity crowdfunding has gained traction in Argentina due to its potential for high returns and the opportunity to support local startups. This trend has been further fueled by the government's efforts to promote entrepreneurship and innovation through various initiatives and incentives.

Local special circumstances in Argentina have also contributed to the development of the capital raising market. The country has a vibrant startup ecosystem, with a growing number of innovative companies emerging in sectors such as technology, fintech, and renewable energy. These startups often face challenges in accessing traditional forms of financing, leading them to explore alternative options.

Additionally, the cultural mindset towards entrepreneurship has evolved, with more individuals and investors embracing the risk and reward associated with early-stage investments. Underlying macroeconomic factors have played a significant role in shaping the capital raising market in Argentina. The country has experienced periods of economic instability and currency devaluation, leading to a lack of trust in the banking system.

This has prompted individuals and businesses to seek alternative ways to raise capital, diversifying their sources of funding and reducing their reliance on traditional financial institutions. Furthermore, the low-interest-rate environment globally has made equity investments more attractive, driving investor demand for opportunities in emerging markets like Argentina. In conclusion, the Capital Raising market in Argentina is experiencing growth due to changing customer preferences, local special circumstances, and underlying macroeconomic factors.

The demand for alternative forms of financing, such as crowdfunding and equity investments, has increased as customers seek more accessible and flexible options. The vibrant startup ecosystem and government support for entrepreneurship have further fueled this trend. Additionally, economic instability and low-interest-rate environment have driven individuals and businesses to explore alternative sources of funding.

As the market continues to evolve, it is expected that the capital raising landscape in Argentina will continue to expand and diversify.

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on the amount of capital raised, the average of 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), 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.

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 Financial market, in a PDF format.

Venture capital is the term used to call the financial resources provided by investors to startup firms and small businesses that show potential for long-term growth. It has become a very important source of capital for entrepreneurs, who often have problems with financing their needs through risk-averse banks. Venture capital investments incorporate a high level of risk as only some of the VC-backed companies develop into successful and highly profitable businesses. In 2020, the leading venture capital backed company worldwide was the Manbang Group, which based in Nanjing, China.