Digital Capital Raising - China | Statista Market Forecast

The country in China is projected to see a total transaction value in the Digital Capital Raising market market reaching US$16.01bn by 2024.
MarketCrowdlending (Business) is set to dominate the market with a projected total transaction value of US$15.97bn in 2024.
When comparing globally, it is evident that the United States leads in cumulated transaction value, reaching US$36bn by 2024.
China's digital capital raising market is booming with a surge in blockchain-based fundraising platforms attracting both domestic and international investors.

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 China is experiencing significant growth and development.

Customer preferences: Customers in China are increasingly turning to digital platforms for capital raising due to the convenience and efficiency they offer. Digital platforms provide a streamlined process for companies to raise capital, allowing them to reach a larger pool of potential investors. Additionally, investors are attracted to these platforms as they provide access to a wide range of investment opportunities, allowing them to diversify their portfolios.

Trends in the market: One major trend in the Digital Capital Raising market in China is the rise of crowdfunding platforms. These platforms allow individuals to invest in startups and other projects, often with relatively small amounts of money. This has democratized the investment process, allowing individuals who may not have had access to traditional investment opportunities to participate in the market. Crowdfunding platforms have also become popular among entrepreneurs as a way to raise capital for their projects, as they can tap into a large pool of potential investors. Another trend in the market is the increasing use of blockchain technology for capital raising. Blockchain technology enables the creation of decentralized digital assets, such as cryptocurrencies, which can be used for fundraising purposes. This technology provides transparency, security, and efficiency in the capital raising process, making it an attractive option for both companies and investors.

Local special circumstances: China has a large population of tech-savvy individuals who are comfortable using digital platforms for various purposes, including financial transactions. This has created a fertile ground for the growth of the Digital Capital Raising market in the country. Additionally, the Chinese government has been supportive of the development of digital finance, providing a favorable regulatory environment for digital capital raising platforms to operate.

Underlying macroeconomic factors: China's strong economic growth and increasing middle class have contributed to the development of the Digital Capital Raising market. As the economy continues to grow, more individuals and companies are seeking investment opportunities and capital raising options. The digitalization of the capital raising process has made it more accessible and efficient, further fueling the growth of the market. In conclusion, the Digital Capital Raising market in China is experiencing significant growth and development. Customer preferences for convenience and efficiency, along with the rise of crowdfunding platforms and the use of blockchain technology, are driving this growth. China's tech-savvy population and supportive regulatory environment are also contributing factors. As the Chinese economy continues to grow, the Digital Capital Raising market is expected to further expand, providing more opportunities for both companies and investors.

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.