Digital Capital Raising - Argentina

The country of Argentina is projected to see a total transaction value of US$54.92m in the Digital Capital Raising market market by 2024.
MarketMarketplace Lending (Consumer) leads the market with a projected total transaction value of US$51.15m in 2024.
When compared globally, the United States achieves the highest cumulated transaction value of US$36bn in 2024.
Amid economic volatility, Argentina is witnessing a surge in digital capital raising as companies seek alternative funding sources in the capital raising market.

Definition:

The Digital Caiptal Raising segment relates to digital financial services for business customers, and private borrowers. Included are Crowdinvesting models, which focus particularly on start-ups exchanging investment for company shares (equity-based), and Crowdfunding solutions, which are used for non-monetary compensation, for example product launches, music, art & film financing (reward-based). The market also includes bank-independent loan allocation for SMEs (Crowdlending) and for personal loans (Marketplace Lending or so-called Peer-to-Peer lending) through private or institutional investors via online platforms. In view of processing complexity, this market is focused on small and medium-sized enterprises (SMEs), freelancers and private persons. Bank financing is not considered, neither are any financial aspects that reach beyond the scope of small and medium-sized enterprises or donation-based Crowdfunding models.

Structure:

Digital Capital Raising consists of Reward-Based Crowdfunding, Crowdinvesting, Crowdlending and Marketplace Lending.

Additional Information:

The market comprises of transaction values, campaigns, average funding per campaign.

Alternative financing for SMEs and freelancers
Equity-based Crowdfunding (or Crowdinvesting)
Reward-based Crowdfunding (or Crowdfunding)
Alternative lending for SMEs and freelancers (bank-independent loans)
Online marketplaces for personal loan applications and private investors
Peer-to-Peer loans with interest rates depending on internal credit scoring of the platform provider

Traditional bank loans
Traditional venture capital investments by institutional or private investors

The Digital Capital Raising market in Argentina is experiencing significant growth and development.

Customer preferences: In Argentina, there is a growing interest among businesses and entrepreneurs in utilizing digital platforms for capital raising. This trend can be attributed to several factors. Firstly, digital capital raising offers convenience and accessibility, allowing businesses to reach a larger pool of potential investors. Additionally, digital platforms provide transparency and efficiency in the capital raising process, which is appealing to both businesses and investors.

Trends in the market: One of the key trends in the Digital Capital Raising market in Argentina is the emergence of crowdfunding platforms. These platforms enable businesses to raise funds from a large number of individuals, often in exchange for equity or other forms of participation in the business. Crowdfunding has gained popularity in Argentina due to its ability to democratize access to capital and foster innovation. Another trend in the market is the increasing use of digital tokens or cryptocurrencies for capital raising. This trend is driven by the growing popularity of blockchain technology and the potential it offers for secure and efficient transactions. Digital tokens provide businesses with an alternative way to raise capital, bypassing traditional intermediaries and reducing costs.

Local special circumstances: Argentina's Digital Capital Raising market is influenced by the country's unique economic and regulatory environment. Argentina has a history of economic instability, with periods of high inflation and currency devaluation. As a result, businesses and investors in the country are often looking for alternative ways to raise and protect capital. The digital nature of capital raising platforms provides some level of insulation from these economic uncertainties. Furthermore, the Argentine government has implemented certain measures to promote digital innovation and entrepreneurship. This includes the creation of regulatory frameworks that facilitate the operation of digital capital raising platforms. These measures have helped to foster a favorable environment for the growth of the Digital Capital Raising market in Argentina.

Underlying macroeconomic factors: The development of the Digital Capital Raising market in Argentina is also influenced by underlying macroeconomic factors. Argentina has a large and growing population, which presents a significant market opportunity for digital capital raising platforms. Additionally, the country has a strong entrepreneurial culture, with many individuals and businesses actively seeking funding for innovative projects. Furthermore, the increasing penetration of internet and mobile technologies in Argentina has contributed to the growth of the Digital Capital Raising market. These technologies have made it easier for businesses and investors to connect and transact online, driving the adoption of digital capital raising platforms. In conclusion, the Digital Capital Raising market in Argentina is experiencing significant growth and development. This is driven by customer preferences for convenience, transparency, and efficiency in the capital raising process. The market is characterized by the emergence of crowdfunding platforms and the increasing use of digital tokens. Argentina's unique economic and regulatory environment, as well as underlying macroeconomic factors, further contribute to the growth of the market.

Data coverage:

The data encompasses B2C enterprises. Figures are based on transaction values / revenues / assets under management and user data of relevant services and products offered within the FinTech market.

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 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, consumer spending, population, internet penetration, smartphone penetration, credit card penetration, and online banking penetration. 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.

Crowdfunding is the collective effort of a large number of individuals who network and pool small amounts of capital to finance a new or existing business venture. Each campaign is set for a goal amount of money and a fixed timeframe, each day is counted down and the money raised will be tallied up for visitors to follow its success. The size of the global crowdfunding market is growing and the largest markets are North America and Asia.