Capital Raising - Chile | Statista Market Forecast

The country in Chile is expected to see the Total Capital Raised in the Capital Raising market market reach US$472.10m by 2024.
Traditional Capital Raising is set to maintain its dominance in the market with a projected volume of US$454.60m in 2024.
When compared globally, the United States is forecasted to generate the highest amount of Capital Raised, amounting to US$195.4bn in 2024.
Chile's capital raising market is witnessing a surge in private equity investments, driving innovation and expansion in the country's entrepreneurial landscape.

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

Use the info button next to the boxes for more information on the data displayed.

Venture Capital
Venture Debt
Digital Capital Raising

Traditional Bank Loans

The Capital Raising market in Chile has been experiencing significant growth in recent years.

Customer preferences: One of the main reasons for this growth is the increasing demand from both domestic and international investors for investment opportunities in Chile. Investors are attracted to the country's stable political and economic environment, as well as its strong growth prospects. In addition, the Chilean government has implemented policies to promote investment and entrepreneurship, which has further fueled the demand for capital raising activities.

Trends in the market: One of the key trends in the capital raising market in Chile is the rise of venture capital and private equity investments. Start-ups and small businesses are increasingly turning to these sources of funding to fuel their growth and expansion. This trend has been driven by the growing entrepreneurial ecosystem in the country, as well as the availability of experienced investors and mentors. Another trend in the market is the increasing popularity of crowdfunding platforms. These platforms allow individuals to invest small amounts of money in start-ups and other projects, and have gained traction in Chile due to their accessibility and transparency. Crowdfunding has democratized the capital raising process, allowing individuals to participate in investment opportunities that were previously only available to institutional investors.

Local special circumstances: Chile has a well-developed financial system, with a strong banking sector and a robust stock market. This has created a favorable environment for capital raising activities, as companies have access to a wide range of financing options. In addition, the country has a highly educated workforce and a culture of innovation, which has contributed to the growth of the start-up ecosystem.

Underlying macroeconomic factors: The growth of the capital raising market in Chile is also supported by favorable macroeconomic factors. The country has a stable and predictable regulatory framework, which provides investors with confidence and reduces investment risks. In addition, Chile has a strong economy, with low inflation and a sound fiscal policy. These factors attract both domestic and international investors, who see Chile as a safe and attractive investment destination. In conclusion, the capital raising market in Chile is experiencing significant growth due to increasing demand from investors, the rise of venture capital and crowdfunding, favorable local circumstances, and supportive macroeconomic factors. This trend is expected to continue in the coming years, as Chile further strengthens its position as a leading destination for capital raising activities.

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.