Capital Raising - Bolivia | Statista Market Forecast

The country in Bolivia is expected to witness a Total Capital Raised in the Capital Raising market market reaching US$6.91m by 2024.
Traditional Capital Raising is set to lead the market with a projected market volume of US$6.88m in 2024.
When compared globally, the United States is anticipated to generate the highest Capital Raised amount, reaching US$195.4bn in 2024.
Bolivia's Capital Raising market sees a growing interest in impact investing, with a focus on sustainable projects and social responsibility.

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 Bolivia has been experiencing significant growth in recent years.

Customer preferences: Bolivian investors have shown a strong interest in capital raising activities, particularly in the form of initial public offerings (IPOs) and private placements. This can be attributed to the desire for diversification of investment portfolios and the potential for high returns in a growing economy. Additionally, Bolivian investors have shown a preference for investing in local businesses, as they believe in supporting the development of their own country.

Trends in the market: One of the key trends in the capital raising market in Bolivia is the increasing number of companies opting for IPOs. This trend can be attributed to several factors. Firstly, the government has implemented policies to encourage the growth of the stock market, making it an attractive option for companies to raise capital. Secondly, the Bolivian economy has been performing well, with steady GDP growth and increasing foreign investment, which has created a favorable environment for companies to go public. Lastly, there has been a growing interest from foreign investors in Bolivian companies, which has further fueled the demand for IPOs. Another trend in the market is the rise of private placements as a capital raising method. Private placements allow companies to raise capital from a select group of investors without going through the formal process of an IPO. This method has become popular among small and medium-sized enterprises (SMEs) in Bolivia, as it provides them with an alternative source of funding without the regulatory requirements and costs associated with an IPO.

Local special circumstances: Bolivia has a unique set of circumstances that contribute to the development of the capital raising market. Firstly, the country has a relatively small stock market, which makes it easier for companies to go public and attract investors. This has led to a higher number of IPOs compared to other countries in the region. Additionally, the government has implemented policies to encourage the growth of the stock market, such as tax incentives for investors and the establishment of a securities exchange. These initiatives have created a favorable environment for capital raising activities in Bolivia.

Underlying macroeconomic factors: Several macroeconomic factors have contributed to the growth of the capital raising market in Bolivia. Firstly, the country has experienced steady economic growth in recent years, driven by increased investment in sectors such as mining, agriculture, and manufacturing. This has created opportunities for companies to expand and raise capital to finance their growth. Secondly, Bolivia has a stable political environment, which has instilled confidence in investors and encouraged them to invest in the country. Lastly, the government has implemented policies to attract foreign investment, which has further fueled the growth of the capital raising market in Bolivia. In conclusion, the capital raising market in Bolivia has been developing rapidly in recent years, driven by customer preferences for diversification and high returns, as well as favorable macroeconomic factors and local special circumstances. The increasing number of IPOs and the rise of private placements are key trends in the market, reflecting the growing interest from both local and foreign investors. With a stable political environment and a government that is supportive of capital raising activities, Bolivia is well-positioned to continue its growth in the capital raising market.

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.