Market Insights Financial Capital Raising Digital Capital Raising

Crowdinvesting - Armenia

Armenia

in Armenia, a country in the South Caucasus region, is projected to have a total transaction value in the Crowdinvesting market reaching US$29.8k in 2024.
When looking at a global comparison, it is evident that the highest transaction value is achieved the United Kingdom, amounting to US$608m in the same year.
Armenia's emerging crowdinvesting market is gaining traction among local startups seeking alternative capital raising opportunities.

Key regions: Europe, Australia, Brazil, China, Israel

Market

Region

Region comparison

Currency

Analyst Opinion

Crowdinvesting, a form of crowdfunding where individuals invest in projects or businesses in exchange for equity or profit, is gaining traction in Armenia.

Customer preferences: Armenian investors are increasingly turning to crowdinvesting as a means of diversifying their investment portfolios and supporting local businesses. This is driven by a growing interest in entrepreneurship and a desire to contribute to the development of the local economy. Additionally, the ease of online platforms and the ability to invest small amounts make crowdinvesting an attractive option for a wide range of individuals.

Trends in the market: The crowdinvesting market in Armenia is experiencing steady growth, with a rising number of platforms and projects seeking funding. One trend is the focus on technology startups, particularly in the fields of software development and IT services. This can be attributed to the country's strong tech talent pool and the government's efforts to promote Armenia as a hub for innovation and technology. Another trend is the emergence of social impact crowdinvesting, where investors prioritize projects that have a positive social or environmental impact. This aligns with the global trend of impact investing, where investors seek both financial returns and positive social outcomes. In Armenia, this trend is driven by a growing awareness of social and environmental issues, as well as a desire to support initiatives that address these challenges.

Local special circumstances: Armenia's small and close-knit business community plays a significant role in the crowdinvesting market. Many investors are individuals who have personal connections to the entrepreneurs or projects they are investing in. This creates a sense of trust and accountability, as investors feel more personally invested in the success of the ventures they support. Additionally, the Armenian diaspora, which is estimated to be larger than the country's population, also plays a role in crowdinvesting by investing in projects in Armenia from abroad.

Underlying macroeconomic factors: Armenia's macroeconomic stability and government support for entrepreneurship are contributing factors to the development of the crowdinvesting market. The country has seen steady economic growth in recent years, which has created a favorable environment for investment. Additionally, the government has implemented policies to support startups and small businesses, including tax incentives and funding programs. These factors, combined with the country's tech talent pool and strong entrepreneurial spirit, provide a solid foundation for the growth of the crowdinvesting market in Armenia.

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.

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.