Digital Capital Raising - Croatia

The country in Croatia is expected to witness a total transaction value in the Digital Capital Raising market market reaching US$6.18m by 2024.
MarketCrowdlending (Business) leads the market with a projected total transaction value of US$2.71m by 2024.
When compared globally, the United States tops the chart with the highest cumulated transaction value of US$36bn in 2024.
Croatia's growing interest in digital capital raising is reshaping the country's capital raising landscape with innovative fundraising solutions.

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 Croatia has been experiencing steady growth in recent years, driven by several key factors.

Customer preferences: Croatian businesses and entrepreneurs are increasingly turning to digital capital raising platforms to fund their ventures. This is primarily due to the convenience and accessibility offered by these platforms, which allow them to connect with a wide range of potential investors from around the world. Additionally, digital capital raising platforms often provide more flexible funding options, allowing businesses to raise capital through equity crowdfunding, peer-to-peer lending, or token offerings.

Trends in the market: One of the key trends in the Digital Capital Raising market in Croatia is the rise of equity crowdfunding. This form of capital raising allows businesses to sell shares of their company to a large number of individual investors, bypassing traditional financial institutions. Equity crowdfunding has gained popularity in Croatia due to its ability to provide funding to early-stage startups and SMEs that may have difficulty accessing traditional sources of capital. Another trend in the market is the increasing use of token offerings, also known as Initial Coin Offerings (ICOs). This form of capital raising involves the sale of digital tokens or coins, which can represent ownership in a company or access to a product or service. ICOs have gained traction in Croatia due to their ability to provide a new way for businesses to raise capital and for investors to participate in early-stage ventures. However, it is worth noting that the regulatory environment for ICOs in Croatia is still evolving, and businesses and investors need to navigate this landscape carefully.

Local special circumstances: Croatia's vibrant startup ecosystem and entrepreneurial culture have contributed to the growth of the Digital Capital Raising market. The country is home to a number of innovative startups in sectors such as technology, tourism, and agriculture, which have attracted interest from both domestic and international investors. Additionally, Croatia's membership in the European Union has provided businesses with access to a larger market and increased opportunities for cross-border investment.

Underlying macroeconomic factors: The growth of the Digital Capital Raising market in Croatia is also influenced by several macroeconomic factors. The country has experienced stable economic growth in recent years, which has created a favorable environment for businesses seeking capital. Additionally, low interest rates and a supportive regulatory framework have encouraged investment in startups and small businesses. However, it is important to note that the COVID-19 pandemic has had an impact on the economy, and businesses may face challenges in raising capital in the near term. Nonetheless, the long-term outlook for the Digital Capital Raising market in Croatia remains positive, as businesses continue to embrace digital platforms to access the funding they need to grow and innovate.

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.