Capital Raising - Asia | Statista Market Forecast

The total capital raised in Asia's Capital Raising market market is projected to reach US$138.20bn in 2024.
Traditional Capital Raising dominates the market in Asia with a projected market volume of US$118.20bn in 2024.
In global comparison, most capital raised will be generated in Asia, specifically the United States (US$195.4bn in 2024).
In Asia, China's growing dominance in the capital raising market is reshaping regional investment trends and attracting global attention.

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 Asia has been experiencing significant growth in recent years, driven by various factors such as customer preferences, market trends, local special circumstances, and underlying macroeconomic factors.

Customer preferences: Asian investors have shown a growing appetite for capital raising activities, seeking opportunities to diversify their investment portfolios and generate higher returns. This can be attributed to the increasing wealth and disposable income of individuals, as well as a shift in investment preferences towards more dynamic and high-growth sectors. Additionally, Asian investors have become more sophisticated and are actively seeking out alternative investment options, such as private equity and venture capital, which offer higher potential returns.

Trends in the market: One of the key trends in the capital raising market in Asia is the rise of technology-driven platforms and crowdfunding. These platforms have democratized the investment process, allowing retail investors to participate in capital raising activities that were previously only accessible to institutional investors. This trend has gained traction in countries like China and India, where a large population of tech-savvy individuals are eager to invest in innovative startups. Another trend in the market is the increasing popularity of green and sustainable investments. Asian countries, especially China, have been actively promoting sustainable development and environmental protection. As a result, there has been a surge in capital raising activities focused on renewable energy, clean technology, and sustainable infrastructure projects. This trend is driven by both government initiatives and investor demand for socially responsible investments.

Local special circumstances: Each country in Asia has its own unique set of circumstances that influence the capital raising market. For example, in China, the government's push for economic reforms and the development of a more market-oriented financial system has led to an increase in capital raising activities. The government has implemented policies to facilitate fundraising for startups and encourage investment in emerging industries. In India, the capital raising market has been boosted by the government's initiatives to promote entrepreneurship and innovation through programs like "Make in India" and "Startup India. " These initiatives have created a favorable environment for startups and have attracted both domestic and foreign investors.

Underlying macroeconomic factors: The capital raising market in Asia is also influenced by underlying macroeconomic factors. The region has been experiencing strong economic growth, which has created a conducive environment for capital raising activities. Additionally, low interest rates and ample liquidity in the financial system have made it easier for companies to access capital. Furthermore, the rise of Asia as a global economic powerhouse has attracted international investors who are looking to tap into the region's growth potential. This has led to an increase in cross-border capital raising activities, with Asian companies attracting investment from both regional and global investors. In conclusion, the Capital Raising market in Asia is experiencing significant growth due to customer preferences for diversification and higher returns, market trends such as technology-driven platforms and sustainable investments, local special circumstances in each country, and underlying macroeconomic factors such as strong economic growth and international interest in the region. These factors are driving the development of the capital raising market in Asia and are expected to continue shaping its future trajectory.

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.