Capital Raising - Caribbean | Statista Market Forecast

The country in question, in the Caribbean, is expected to see the Total Capital Raised in the Capital Raising market market reach US$199.70m by 2024.
Traditional Capital Raising is set to lead the market, with a projected market volume of US$199.00m in 2024.
When compared globally, the United States is anticipated to generate the most Capital Raised (US$195.4bn in 2024).
In the Caribbean, the Capital Raising market is seeing a surge in private equity investments in tech startups, driving innovation and economic growth.

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 Caribbean has been experiencing significant growth in recent years. Customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors have all contributed to this development.

Customer preferences in the Caribbean have shifted towards alternative forms of capital raising, such as crowdfunding and peer-to-peer lending. This is driven by a desire for more accessible and inclusive financing options, particularly among small and medium-sized enterprises (SMEs). Additionally, investors are increasingly seeking opportunities in the region, attracted by its potential for high returns and diversification.

Trends in the market reflect the growing demand for capital raising services. Traditional banks and financial institutions are facing increased competition from fintech companies and online platforms that offer innovative ways to raise capital. These platforms provide easier access to funding for entrepreneurs and SMEs, reducing the reliance on traditional lending institutions.

As a result, the market is becoming more dynamic and diverse, with a wider range of options available to businesses seeking capital. Local special circumstances in the Caribbean also contribute to the development of the capital raising market. The region is home to a vibrant startup ecosystem, with a growing number of entrepreneurs and innovators.

This entrepreneurial spirit, combined with government support and initiatives, has created a favorable environment for capital raising activities. Additionally, the Caribbean has a strong tourism industry, which attracts foreign investment and contributes to economic growth. This, in turn, fuels the demand for capital raising services to support the expansion of businesses in the sector.

Underlying macroeconomic factors further drive the growth of the capital raising market in the Caribbean. Economic stability and favorable investment climate in the region have attracted both local and international investors. The Caribbean has seen steady economic growth in recent years, driven by sectors such as tourism, agriculture, and renewable energy.

This positive economic outlook has increased investor confidence and created opportunities for capital raising activities. In conclusion, the Capital Raising market in Caribbean is developing due to customer preferences for alternative financing options, trends towards fintech and online platforms, local special circumstances including a vibrant startup ecosystem and a strong tourism industry, and underlying macroeconomic factors such as economic stability and favorable investment climate. These factors have contributed to the growth of the market and are likely to continue driving its development in the future.

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.