Capital Raising - Cyprus | Statista Market Forecast

The country in Cyprus is poised to witness a total Capital Raised in the Capital Raising market market reaching US$324.30m in 2024.
Traditional Capital Raising is expected to maintain dominance in the market with a projected market volume of US$319.60m in 2024.
In a global context, the United States is anticipated to generate the highest amount of Capital Raised, with US$195.4bn in 2024.
Cyprus is witnessing a surge in private equity investments, making it a hotspot for capital raising activities in the financial market.

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 Cyprus has been experiencing significant growth in recent years, driven by several key factors. Customer preferences have shifted towards alternative financing options, such as crowdfunding and peer-to-peer lending, which have gained popularity due to their accessibility and flexibility. In addition, there has been a growing demand for capital from small and medium-sized enterprises (SMEs) in Cyprus, as they seek to expand their operations and invest in new projects. This has led to an increase in the number of capital raising activities in the country.

Customer preferences: In Cyprus, customer preferences have shifted towards alternative financing options, such as crowdfunding and peer-to-peer lending. These platforms provide individuals and businesses with an alternative way to raise capital, bypassing traditional banks and financial institutions. The ease of access and flexibility offered by these platforms have made them attractive to both investors and borrowers. Investors are able to diversify their portfolios and potentially earn higher returns, while borrowers can access funding quickly and without the need for collateral. As a result, the popularity of these platforms has grown significantly in Cyprus, leading to an increase in capital raising activities.

Trends in the market: One of the key trends in the capital raising market in Cyprus is the growing demand for capital from SMEs. Small and medium-sized enterprises play a crucial role in the Cypriot economy, and many of them are looking to expand their operations and invest in new projects. However, accessing traditional financing options, such as bank loans, can be challenging for SMEs, especially those without a long credit history or sufficient collateral. As a result, many SMEs are turning to alternative financing options, such as crowdfunding and peer-to-peer lending, to raise the capital they need. This trend is expected to continue in the coming years, as more SMEs recognize the benefits of these alternative financing options.

Local special circumstances: Cyprus has a well-established financial services sector, which has played a key role in the development of the capital raising market. The country's favorable business environment, low taxes, and strategic location have attracted a number of international companies to establish their presence in Cyprus. This has created a vibrant ecosystem for capital raising activities, with a diverse range of investors and borrowers. In addition, the Cypriot government has implemented several initiatives to support the growth of the capital raising market, including the establishment of a regulatory framework for crowdfunding platforms. These factors have contributed to the development of a dynamic and innovative capital raising market in Cyprus.

Underlying macroeconomic factors: The growth of the capital raising market in Cyprus is also influenced by underlying macroeconomic factors. The country's economy has been recovering steadily since the financial crisis, with GDP growth rates consistently outperforming the Eurozone average. This positive economic outlook has created a favorable environment for capital raising activities, as investors are more willing to take on risk and invest in new ventures. In addition, low interest rates and abundant liquidity in the financial system have made it easier for borrowers to access capital. These macroeconomic factors, combined with the local special circumstances, have contributed to the development and growth of the capital raising market in Cyprus.

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.