Crowdinvesting - Argentina

Argentina

Highlights

Argentina is projected to reach a total transaction value of US$2.30m in the Crowdinvesting market by 2024.
When compared globally, the United Kingdom is expected to achieve the highest transaction value of US$608m in 2024.
Argentina's crowdinvesting market is gaining momentum, with a growing number of startups turning to this alternative capital-raising method.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Crowdinvesting market in Argentina has been experiencing significant growth in recent years.

Customer preferences: Argentinian investors are increasingly turning to crowdinvesting platforms as a way to diversify their investment portfolios and access new investment opportunities. The ease and convenience of online platforms, coupled with the potential for high returns, have made crowdinvesting an attractive option for both individual and institutional investors. Additionally, the ability to invest in a wide range of projects, from startups to real estate developments, allows investors to support industries and causes they are passionate about.

Trends in the market: One of the key trends in the crowdinvesting market in Argentina is the rise of equity crowdfunding. This form of crowdinvesting allows individuals to invest in early-stage startups in exchange for equity ownership. This trend has been driven by the growing startup ecosystem in Argentina, which has seen a number of successful companies emerge in recent years. Investors are attracted to the potential for high returns that come with investing in startups, while entrepreneurs benefit from the access to capital and expertise that crowdinvesting provides. Another trend in the market is the increasing use of crowdinvesting for real estate projects. Real estate has traditionally been a popular investment option in Argentina, and crowdinvesting platforms have made it easier for individual investors to participate in this market. Through crowdinvesting, investors can pool their resources to finance real estate developments, such as residential buildings or commercial properties. This trend has been driven by the high demand for real estate in Argentina, as well as the potential for attractive returns in the sector.

Local special circumstances: One of the factors driving the growth of the crowdinvesting market in Argentina is the country's entrepreneurial spirit. Argentina has a long history of innovation and entrepreneurship, and this culture has created a fertile ground for startups and small businesses to thrive. The government has also been supportive of the startup ecosystem, implementing policies and programs to encourage entrepreneurship and attract investment. This supportive environment has helped to fuel the growth of crowdinvesting in Argentina.

Underlying macroeconomic factors: The development of the crowdinvesting market in Argentina is also influenced by macroeconomic factors. The country has experienced periods of economic instability in the past, which has led to a lack of access to traditional sources of financing for small businesses and startups. Crowdinvesting has emerged as an alternative source of capital, providing entrepreneurs with the funding they need to grow their businesses. Additionally, the low interest rate environment in Argentina has made crowdinvesting an attractive investment option for individuals looking for higher returns on their investments. In conclusion, the crowdinvesting market in Argentina is experiencing significant growth due to customer preferences for diversification and access to new investment opportunities. The rise of equity crowdfunding and the use of crowdinvesting for real estate projects are key trends in the market. The country's entrepreneurial spirit and supportive government policies have created a favorable environment for the development of crowdinvesting. Macroeconomic factors, such as limited access to traditional financing and a low interest rate environment, have also contributed to the growth of the market.

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.