Digital Capital Raising - Cambodia

The country of Cambodia is projected to reach a total transaction value of US$639.90k in the Digital Capital Raising market market by 2024.
In the same year, MarketCrowdlending (Business) is expected to dominate the market with a projected total transaction value of US$639.90k.
When compared globally, the United States leads with the highest cumulated transaction value of US$36bn in 2024.
Cambodia is embracing digital capital raising platforms to attract investment and foster economic growth 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 Cambodia has been experiencing significant growth in recent years, driven by changing customer preferences, emerging trends in the market, and local special circumstances. Customer preferences in Cambodia have shifted towards digital platforms for capital raising, as more individuals and businesses are embracing technology and online solutions.

This preference is driven by the convenience and accessibility offered by digital platforms, allowing users to access capital from anywhere at any time. Additionally, the younger generation in Cambodia, who are more tech-savvy, are increasingly turning to digital channels for their capital raising needs. Trends in the market indicate a growing demand for digital capital raising solutions in Cambodia.

One of the key trends is the rise of crowdfunding platforms, which provide a platform for individuals and businesses to raise capital from a large number of people. This trend is fueled by the increasing interest in supporting local businesses and startups, as well as the potential for high returns on investment. Another trend is the emergence of peer-to-peer lending platforms, which connect borrowers directly with lenders, bypassing traditional financial institutions.

This trend is driven by the need for quick and easy access to capital, especially for small and medium-sized enterprises (SMEs) that may not have access to traditional financing options. Local special circumstances in Cambodia, such as a growing startup ecosystem and a lack of traditional banking infrastructure, have also contributed to the development of the digital capital raising market. Cambodia has seen a rise in the number of startups in recent years, particularly in the technology sector, creating a demand for alternative financing options.

Additionally, the country's limited banking infrastructure and low banking penetration rate have created a need for digital solutions that can provide access to capital to a wider population. Underlying macroeconomic factors, such as Cambodia's strong economic growth and increasing internet penetration, have also played a role in the development of the digital capital raising market. Cambodia has experienced robust economic growth in recent years, which has created opportunities for businesses and individuals to seek capital for expansion and investment.

Furthermore, the country has witnessed a significant increase in internet penetration, providing a larger customer base for digital capital raising platforms. Overall, the Digital Capital Raising market in Cambodia is developing due to changing customer preferences towards digital platforms, emerging trends in the market, local special circumstances, and underlying macroeconomic factors. As more individuals and businesses in Cambodia embrace technology and online solutions, the demand for digital capital raising platforms is expected to continue to grow.

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.