Capital Raising - Bulgaria | Statista Market Forecast

The country in Bulgaria is expected to see a Total Capital Raised in the Capital Raising market market reaching US$47.49m by 2024.
Traditional Capital Raising is anticipated to dominate the market with a projected market volume of US$33.33m in 2024.
In global comparison, the United States is set to generate the most Capital Raised with US$195.4bn in 2024.
Bulgaria's Capital Raising market is experiencing a surge in private equity investments, indicating growing confidence and interest from investors.

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 Bulgaria has been experiencing significant growth in recent years, driven by a number of factors.

Customer preferences: Bulgarian investors have shown a growing interest in capital raising activities, particularly in the form of initial public offerings (IPOs). This can be attributed to their desire to diversify their investment portfolios and seek higher returns. Additionally, there has been an increasing number of retail investors participating in the market, as they see it as an opportunity to invest in local companies and support the domestic economy.

Trends in the market: One of the key trends in the Capital Raising market in Bulgaria is the rise of technology companies seeking funding. This is driven by the country's growing reputation as a hub for tech startups, with a number of successful companies emerging in recent years. These companies are often looking to raise capital to fuel their expansion plans and take advantage of the favorable investment environment in Bulgaria. Another trend in the market is the increasing participation of foreign investors. Bulgaria's membership in the European Union and its favorable business environment have attracted foreign capital, leading to a surge in cross-border investments. This has not only provided local companies with access to a wider pool of capital, but has also helped to raise the profile of the Bulgarian Capital Raising market on the global stage.

Local special circumstances: The Capital Raising market in Bulgaria has benefited from a number of local special circumstances. One of these is the country's favorable tax regime, which includes a flat corporate tax rate of 10%. This has made Bulgaria an attractive destination for companies looking to raise capital, as it allows them to retain a larger portion of their profits. Additionally, the Bulgarian government has implemented a number of initiatives to support the growth of the Capital Raising market, including the establishment of a dedicated stock exchange for small and medium-sized enterprises.

Underlying macroeconomic factors: The development of the Capital Raising market in Bulgaria can also be attributed to a number of underlying macroeconomic factors. The country has experienced steady economic growth in recent years, with a stable political environment and a well-developed financial sector. This has created a favorable investment climate, attracting both domestic and foreign investors. Furthermore, Bulgaria's strategic location within Europe and its strong ties to neighboring countries have positioned it as a gateway for capital flows in the region. In conclusion, the Capital Raising market in Bulgaria is experiencing significant growth, driven by customer preferences for diversification and higher returns, as well as the rise of technology companies and increasing participation of foreign investors. The market has also benefited from local special circumstances, such as a favorable tax regime and government initiatives to support its development. Underlying macroeconomic factors, including steady economic growth and Bulgaria's strategic location, have further contributed to the market's success.

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.