Digital Capital Raising - Australia & Oceania

The total transaction value in the Digital Capital Raising market market in Australia & Oceania is projected to reach US$280.40m in 2024.
MarketMarketplace Lending (Consumer) dominates the market with a projected total transaction value of US$192.30m in 2024.
A global comparison perspective reveals that the highest cumulated transaction value is reached the United States (US$36bn in 2024).
Australia is embracing digital platforms for capital raising, revolutionizing the traditional market landscape with increased accessibility and efficiency.

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 Australia & Oceania is experiencing significant growth and development.

Customer preferences: In this region, businesses and entrepreneurs are increasingly turning to digital platforms for capital raising purposes. This is primarily driven by the convenience and efficiency offered by online fundraising platforms. Investors are also drawn to the ease of accessing investment opportunities through digital channels, as well as the potential for higher returns compared to traditional investment options.

Trends in the market: One of the key trends in the Digital Capital Raising market in Australia & Oceania is the rise of crowdfunding platforms. These platforms allow businesses to raise capital from a large pool of individual investors, often through small contributions. This democratization of capital raising has opened up new opportunities for startups and small businesses, who may have previously struggled to secure funding through traditional channels. Additionally, crowdfunding platforms provide investors with the ability to diversify their portfolios and support innovative projects that align with their interests. Another trend in the market is the increasing popularity of initial coin offerings (ICOs). ICOs are a form of crowdfunding that involves the issuance of digital tokens or coins in exchange for investment. This method of capital raising has gained traction in Australia & Oceania due to the region's growing blockchain and cryptocurrency ecosystem. ICOs offer businesses a new way to raise funds for blockchain-based projects, while investors are attracted by the potential for high returns in this emerging asset class.

Local special circumstances: Australia & Oceania has a unique set of circumstances that contribute to the development of the Digital Capital Raising market. The region is home to a vibrant startup ecosystem, with a strong focus on technology and innovation. This entrepreneurial culture, combined with a supportive regulatory environment, has fostered the growth of digital capital raising platforms. Furthermore, Australia & Oceania has a diverse population with a high level of digital literacy. This makes the region well-suited for online fundraising initiatives, as individuals are comfortable using digital platforms for financial transactions. The widespread adoption of mobile devices and internet connectivity also contributes to the accessibility of digital capital raising in this region.

Underlying macroeconomic factors: The development of the Digital Capital Raising market in Australia & Oceania is also influenced by underlying macroeconomic factors. The region has experienced steady economic growth in recent years, which has created a favorable environment for investment and capital raising activities. Additionally, low interest rates and a search for higher yields have led investors to explore alternative investment options, such as digital assets and crowdfunding opportunities. In conclusion, the Digital Capital Raising market in Australia & Oceania is growing rapidly, driven by customer preferences for convenience and efficiency, as well as the region's unique entrepreneurial culture and supportive regulatory environment. The rise of crowdfunding platforms and the popularity of ICOs are key trends in this market, providing businesses and investors with new opportunities for capital raising and investment. The underlying macroeconomic factors, including economic growth and low interest rates, further contribute to the development of the digital capital raising market in this region.

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.