Capital Raising - Colombia | Statista Market Forecast

The country in Colombia is expected to see the Total Capital Raised in the Capital Raising market market reach US$429.80m by 2024.
Traditional Capital Raising is set to lead the market with a projected market volume of US$410.50m in 2024.
In a global context, the United States is anticipated to generate the most Capital Raised with US$195.4bn in 2024.
Colombia's Capital Raising market is seeing a surge in private equity investments, driving innovative growth strategies among local businesses.

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

Colombia, a country known for its rich cultural heritage and breathtaking landscapes, is also experiencing significant developments in its Capital Raising market. This market, which refers to the process of raising funds from investors to finance various projects and initiatives, is witnessing a number of trends and developments that are shaping its growth.

Customer preferences: In Colombia, there is a growing preference among investors for alternative forms of capital raising, such as crowdfunding and peer-to-peer lending. These platforms provide individuals and small businesses with the opportunity to access funding from a wider pool of investors, bypassing traditional financial intermediaries. This shift in customer preferences is driven by the desire for greater transparency, flexibility, and control over investment decisions.

Trends in the market: One of the key trends in the Capital Raising market in Colombia is the increasing participation of institutional investors. These investors, such as pension funds and insurance companies, are attracted to the country's strong economic fundamentals and favorable investment climate. As a result, they are allocating a larger portion of their portfolios to alternative investment opportunities, including private equity and venture capital. Another trend in the market is the rise of impact investing. Investors in Colombia are increasingly seeking opportunities that generate both financial returns and positive social and environmental impact. This trend is driven by a growing awareness of sustainability issues and the desire to support businesses that align with their values.

Local special circumstances: Colombia's vibrant startup ecosystem is a unique factor that is contributing to the development of the Capital Raising market. The country has a thriving entrepreneurial culture and a supportive regulatory environment, which encourages innovation and attracts both local and international investors. This has led to a surge in the number of startups and a corresponding increase in the demand for capital.

Underlying macroeconomic factors: The Capital Raising market in Colombia is also influenced by several macroeconomic factors. The country's stable economic growth, low inflation, and favorable interest rate environment create a conducive climate for investment. Additionally, the government's efforts to promote entrepreneurship and attract foreign direct investment have further bolstered the market. In conclusion, the Capital Raising market in Colombia is experiencing significant developments driven by customer preferences, local special circumstances, and underlying macroeconomic factors. The shift towards alternative forms of capital raising, the increasing participation of institutional investors, and the rise of impact investing are all shaping the growth of the market. With a vibrant startup ecosystem and a supportive regulatory environment, Colombia is well-positioned to attract both local and international investors seeking investment opportunities in the country.

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.