Digital Capital Raising - Belgium

The country in Belgium is projected to reach a total transaction value of US$96.38m in the Digital Capital Raising market market by 2024.
In this market, MarketMarketplace Lending (Consumer) is expected to dominate with a projected total transaction value of US$69.21m by 2024.
When compared globally, it is evident that the United States leads with the highest cumulated transaction value of US$36bn in 2024.
In Belgium, digital capital raising platforms are gaining traction, offering innovative ways for companies to raise funds in the capital 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 Belgium has been steadily developing over the past few years, driven by various factors such as customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors. Customer preferences in Belgium have played a significant role in the growth of the Digital Capital Raising market.

Belgian investors have shown a growing interest in alternative investment opportunities, seeking higher returns and diversification. Digital capital raising platforms provide them with access to a wide range of investment options, including crowdfunding, peer-to-peer lending, and digital securities. This allows investors to allocate their capital in a more flexible and personalized manner, aligning with their risk appetite and investment goals.

Trends in the market have also contributed to the development of the Digital Capital Raising market in Belgium. One notable trend is the increasing adoption of technology and digitalization across various industries. This has created a favorable environment for digital capital raising platforms to thrive, as they leverage technology to connect investors with businesses and projects seeking funding.

Additionally, the rise of blockchain technology has facilitated the emergence of digital securities, enabling investors to trade and hold assets in a more efficient and secure manner. Local special circumstances in Belgium have further fueled the growth of the Digital Capital Raising market. Belgium is known for its vibrant startup ecosystem, with a significant number of innovative companies and entrepreneurs.

However, traditional funding options, such as bank loans and venture capital, may not always be accessible or suitable for these startups. Digital capital raising platforms provide an alternative avenue for these companies to raise funds, allowing them to accelerate their growth and innovation. Underlying macroeconomic factors have also played a role in the development of the Digital Capital Raising market in Belgium.

Low interest rates in the country have pushed investors to seek higher-yielding investment opportunities, leading to increased demand for alternative investments. Additionally, the European Union's Capital Markets Union initiative has aimed to promote cross-border investment and access to finance for businesses, creating a more favorable regulatory environment for digital capital raising platforms. In conclusion, the Digital Capital Raising market in Belgium has experienced significant growth due to customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors.

As technology continues to advance and investor demand for alternative investments persists, the market is expected to further evolve and expand in the coming years.

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.