Capital Raising - Costa Rica

Costa Rica

The country of Costa Rica is expected to witness a Total Capital Raised in the Capital Raising market market reaching US$160.3m in 2024.
Traditional Capital Raising is set to dominate the market with a projected market volume of US$160.2m in 2024.
When compared globally, the United States will generate the highest amount of Capital Raised, reaching US$331,800.0m in 2024.
Costa Rica's capital raising market is seeing a surge in interest from foreign investors seeking exposure to the country's growing renewable energy projects.

Key regions: United States, China, India, Israel, Europe

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Analyst Opinion

The Capital Raising market in Costa Rica has been experiencing significant development in recent years.

Customer preferences: Costa Rican investors have shown a growing interest in capital raising activities, particularly in the form of equity and debt offerings. This can be attributed to the desire for diversification and the potential for higher returns on investment. Additionally, investors in Costa Rica have become more sophisticated and are increasingly seeking opportunities to participate in the global financial markets.

Trends in the market: One of the key trends in the capital raising market in Costa Rica is the increasing number of initial public offerings (IPOs). Companies in various sectors, including technology, finance, and consumer goods, are opting to go public in order to raise capital for expansion and growth. This trend is driven by the strong performance of the Costa Rican economy and the favorable investment climate in the country. Another trend in the market is the rise of crowdfunding platforms. These platforms have become popular among entrepreneurs and small businesses looking to raise capital from a large number of individual investors. The ease of access and lower costs associated with crowdfunding have made it an attractive option for capital raising in Costa Rica.

Local special circumstances: Costa Rica has a well-developed financial services sector, which includes a number of banks, investment firms, and brokerage houses. This infrastructure provides a solid foundation for capital raising activities and facilitates the flow of funds between investors and businesses. Additionally, the government of Costa Rica has implemented policies and regulations to promote capital raising activities. This includes the establishment of a regulatory framework that ensures transparency and investor protection. These measures have instilled confidence in the market and have attracted both domestic and foreign investors.

Underlying macroeconomic factors: The development of the capital raising market in Costa Rica is closely tied to the overall macroeconomic conditions in the country. The Costa Rican economy has been growing steadily, driven by sectors such as tourism, agriculture, and technology. This growth has created a favorable environment for businesses to raise capital and expand their operations. Furthermore, the low interest rate environment in Costa Rica has made borrowing more affordable, encouraging companies to seek external funding for their projects. This has contributed to the increase in debt offerings and bond issuances in the capital raising market. In conclusion, the Capital Raising market in Costa Rica is developing due to the preferences of Costa Rican investors for diversification and higher returns, the increasing number of IPOs and the rise of crowdfunding platforms. The local special circumstances, such as the well-developed financial services sector and government policies, have also contributed to the growth of the market. The underlying macroeconomic factors, including the strong performance of the Costa Rican economy and the low interest rate environment, have further supported the development of the capital raising market in Costa Rica.

Methodology

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.