Digital Capital Raising - Canada

  • Canada
  • The Digital Capital Raising market market in Canada is projected to reach a total transaction value of US$36.29m in 2024.
  • In this market, MarketReward-Based Crowdfunding is expected to dominate with a projected total transaction value of US$20.40m in 2024.
  • When compared globally, it is evident that the United States leads with the highest cumulated transaction value of US$36,370m in 2024.
  • In Canada, the digital capital raising market is rapidly evolving, with blockchain technology playing a pivotal role in shaping fundraising strategies for businesses.

Key regions: Brazil, Germany, United States, United Kingdom, China

 
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Analyst Opinion

The Digital Capital Raising market in Canada has been experiencing significant growth in recent years, driven by changing customer preferences and the adoption of new technologies.

Customer preferences:
Customers in Canada have shown a growing interest in digital capital raising platforms, as they offer convenience and accessibility. These platforms allow individuals and businesses to raise capital online, eliminating the need for traditional financing methods such as bank loans or venture capital. This shift in customer preferences can be attributed to the increasing trust in digital platforms and the desire for more control over investment decisions.

Trends in the market:
One of the key trends in the digital capital raising market in Canada is the rise of crowdfunding platforms. These platforms allow individuals to invest in projects or businesses that align with their interests and values. This trend has been fueled by the success of crowdfunding campaigns and the ability to reach a large number of potential investors through online channels. Additionally, the emergence of blockchain technology has opened up new possibilities for digital capital raising, such as Initial Coin Offerings (ICOs) and Security Token Offerings (STOs). These blockchain-based fundraising methods offer increased transparency and security, attracting both investors and issuers.

Local special circumstances:
Canada's strong startup ecosystem and supportive regulatory environment have also contributed to the growth of the digital capital raising market. The country has a thriving tech sector, with numerous innovative startups seeking funding to fuel their growth. The Canadian government has implemented measures to facilitate capital raising, such as the introduction of crowdfunding regulations and tax incentives for investors. These initiatives have created a favorable environment for digital capital raising platforms to flourish.

Underlying macroeconomic factors:
The digital capital raising market in Canada is also influenced by underlying macroeconomic factors. The country's stable economy and high internet penetration rate provide a solid foundation for the growth of digital platforms. Additionally, the COVID-19 pandemic has accelerated the adoption of digital technologies across various industries, including finance. As traditional fundraising methods became more challenging during the pandemic, businesses and individuals turned to digital capital raising platforms as a viable alternative. This shift in behavior is likely to have a lasting impact on the market, driving further growth in the coming years. In conclusion, the digital capital raising market in Canada is witnessing significant growth due to changing customer preferences, the rise of crowdfunding platforms, supportive regulatory environment, and underlying macroeconomic factors. As more individuals and businesses embrace digital capital raising, the market is expected to continue its upward trajectory, providing new opportunities for investors and issuers alike.

Methodology

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. The scenario analysis is based on a Monte Carlo simulation approach generating a range of possible outcomes by creating random variations in forecasted data points, based on assumptions about potential fluctuations in future values. By running numerous simulated scenarios, the model provides an estimated distribution of results, allowing for an analysis of likely ranges and confidence intervals around the forecast.

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.

Overview

  • Capital Raised
  • Average Deal Size
  • Global Comparison
  • Number of Deals
  • Analyst Opinion
  • Methodology
  • Key Market Indicators
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