Digital Capital Raising - Bolivia

The country in Bolivia is expected to see the total transaction value in the Digital Capital Raising market market reach US$28.42k by 2024.
In Bolivia, MarketCrowdlending (Business) is set to dominate the market with a projected total transaction value of US$28.42k in 2024.
When compared globally, it is evident that the United States leads with the highest cumulated transaction value of US$36bn in 2024.
Bolivia is witnessing a growing interest in digital capital raising platforms, revolutionizing the traditional capital raising landscape in the country.

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 Bolivia is experiencing significant growth and development, driven by various factors such as customer preferences, market trends, local special circumstances, and underlying macroeconomic factors. Customer preferences in Bolivia are shifting towards digital capital raising methods due to their convenience and accessibility.

With the advent of technology and the increasing use of smartphones, Bolivian consumers are embracing digital platforms for various financial activities, including capital raising. The ease of use and convenience offered by digital platforms allow customers to access capital raising opportunities from anywhere, at any time, without the need for physical presence or paperwork. This customer preference for digital solutions is driving the growth of the Digital Capital Raising market in Bolivia.

In line with global trends, the Digital Capital Raising market in Bolivia is witnessing the emergence of crowdfunding platforms. These platforms connect entrepreneurs and businesses with potential investors, allowing them to raise capital for their projects or ventures. Crowdfunding offers a unique opportunity for individuals and small businesses to access capital that may not be available through traditional financial institutions.

This trend is particularly beneficial for the Bolivian market, where access to capital can be limited for certain segments of the population. Another trend in the Digital Capital Raising market in Bolivia is the rise of peer-to-peer lending platforms. These platforms connect borrowers directly with lenders, eliminating the need for intermediaries such as banks.

Peer-to-peer lending offers an alternative source of capital for individuals and businesses, especially those who may not meet the strict criteria of traditional lenders. The convenience and flexibility of peer-to-peer lending platforms are attracting both borrowers and lenders, contributing to the growth of the Digital Capital Raising market in Bolivia. Local special circumstances in Bolivia, such as the presence of a large unbanked population, also contribute to the development of the Digital Capital Raising market.

Traditional financial institutions may not be accessible or suitable for a significant portion of the population, particularly those in rural areas. Digital capital raising platforms provide an alternative solution for these individuals and businesses to access capital and financial services. The inclusive nature of digital platforms allows for greater financial inclusion and economic empowerment in Bolivia.

Underlying macroeconomic factors, such as economic growth and stability, also play a role in the development of the Digital Capital Raising market in Bolivia. A growing economy creates opportunities for businesses and entrepreneurs to seek capital for expansion or new ventures. The stability of the economy provides a favorable environment for investors to participate in digital capital raising activities.

These macroeconomic factors contribute to the overall growth and attractiveness of the Digital Capital Raising market in Bolivia. In conclusion, the Digital Capital Raising market in Bolivia is experiencing growth and development driven by customer preferences, market trends, local special circumstances, and underlying macroeconomic factors. The shift towards digital solutions, the emergence of crowdfunding and peer-to-peer lending platforms, the presence of a large unbanked population, and favorable macroeconomic conditions are all contributing to the growth of the Digital Capital Raising market in Bolivia.

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.