Digital Capital Raising - Asia | Statista Market Forecast

The total transaction value in the Digital Capital Raising market market in Asia is projected to reach US$20.02bn in 2024.
MarketCrowdlending (Business) dominates the market in Asia with a projected total transaction value of US$18.29bn in 2024.
From a global comparison perspective, it is shown that the highest cumulated transaction value is reached in Asia, with the United States leading at US$36bn in 2024.
In Asia, the digital capital raising market in China is witnessing a surge in initial coin offerings (ICOs) as a popular fundraising method for startups.

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 Asia is experiencing significant growth and development due to several key factors. Customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors all contribute to the expansion of this market.

Customer preferences in Asia are shifting towards digital platforms for capital raising. With the rise of technology and internet penetration, investors and entrepreneurs are increasingly turning to online platforms to access capital and invest in promising ventures. This shift is driven by the convenience and efficiency offered by digital platforms, as well as the ability to reach a wider pool of potential investors.

Trends in the market indicate a growing acceptance and adoption of digital capital raising methods in Asia. Crowdfunding platforms, for example, have gained popularity as a means for entrepreneurs to raise funds from a large number of individual investors. This trend is fueled by the success stories of startups that have successfully raised capital through crowdfunding, as well as the increasing awareness and understanding of this alternative financing method.

Local special circumstances also contribute to the development of the Digital Capital Raising market in Asia. In many countries in the region, traditional financing options may be limited or inaccessible for certain entrepreneurs and small businesses. Banks and other financial institutions may have stringent lending criteria or may be reluctant to provide funding to startups or ventures in emerging industries.

This creates a gap in the market that digital capital raising platforms can fill, providing an alternative source of funding for these businesses. Underlying macroeconomic factors further support the growth of the Digital Capital Raising market in Asia. Rapid economic growth in many Asian countries has led to an increase in entrepreneurial activity and a greater demand for capital.

Additionally, the rise of the middle class in the region has created a larger pool of potential investors who are looking for investment opportunities. These factors create a favorable environment for the development of digital capital raising platforms, which can connect entrepreneurs and investors more efficiently than traditional methods. In conclusion, the Digital Capital Raising market in Asia is experiencing significant growth and development due to customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors.

The shift towards digital platforms for capital raising, the growing acceptance of alternative financing methods, limited access to traditional financing options, and favorable macroeconomic conditions all contribute to the expansion of this market. As technology continues to advance and internet penetration increases, the Digital Capital Raising market in Asia is expected to continue its upward trajectory.

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.