Capital Raising - Canada | Statista Market Forecast

The country in Canada is expected to see Total Capital Raised in the Capital Raising market market reach US$7.91bn by 2024.
Traditional Capital Raising is set to dominate the market with a projected market volume of US$7.88bn in 2024.
When compared globally, the majority of Capital Raised is anticipated to be generated the United States (US$195.4bn in 2024).
In Canada, the Capital Raising market is witnessing a surge in interest from institutional investors seeking exposure to diverse investment opportunities.

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 Canada has experienced significant growth in recent years, driven by several factors including customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors.

Customer preferences: In Canada, there is a strong preference among investors for diverse investment portfolios that include a mix of traditional and alternative assets. This has led to increased demand for capital raising activities across various sectors, including real estate, infrastructure, and technology. Investors are seeking opportunities to diversify their portfolios and generate higher returns, driving the growth of the capital raising market in Canada.

Trends in the market: One of the key trends in the capital raising market in Canada is the rise of crowdfunding platforms. These platforms have gained popularity among both retail and institutional investors, providing them with access to a wide range of investment opportunities. Crowdfunding has democratized the capital raising process, allowing smaller businesses and startups to raise funds from a larger pool of investors. This trend has contributed to the growth of the capital raising market in Canada. Another trend in the market is the increasing use of digital platforms for capital raising activities. The digital transformation has made it easier for companies to connect with potential investors and raise capital more efficiently. Online platforms provide a streamlined process for companies to showcase their investment opportunities and for investors to evaluate and participate in those opportunities. This trend has accelerated the growth of the capital raising market in Canada.

Local special circumstances: Canada has a well-developed financial services sector, which includes a strong network of banks, investment firms, and venture capital funds. This infrastructure provides a supportive environment for capital raising activities, making it easier for companies to access funding. Additionally, the Canadian government has implemented policies and programs to encourage innovation and entrepreneurship, further supporting the growth of the capital raising market.

Underlying macroeconomic factors: The Canadian economy has been relatively stable in recent years, with steady GDP growth and low inflation. This favorable economic environment has increased investor confidence and attracted both domestic and international capital to the Canadian market. Furthermore, the low interest rate environment has made it more attractive for companies to raise capital through debt financing, driving the growth of the capital raising market. In conclusion, the capital raising market in Canada has experienced significant growth due to customer preferences for diverse investment portfolios, trends such as the rise of crowdfunding platforms and digitalization, local special circumstances including a well-developed financial services sector and supportive government policies, and underlying macroeconomic factors such as a stable economy and low interest rates. These factors have created a favorable environment for companies to raise capital and have contributed to the development of the capital raising market in Canada.

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.