Crowdinvesting - Canada

  • Canada
  • Canada is expected to see the total transaction value in the Crowdinvesting market reach US$1.9m in 2024.
  • When comparing globally, the United Kingdom leads with a transaction value of US$608m in 2024.
  • Canada's vibrant Crowdinvesting scene in the Capital Raising market reflects a growing appetite for alternative investment opportunities among tech-savvy investors.

Key regions: Europe, Singapore, United States, India, China

 
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Analyst Opinion

The Crowdinvesting market in Canada has been experiencing significant growth in recent years, driven by customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors.

Customer preferences:
Canadian investors have shown a growing interest in alternative investment opportunities, including crowdinvesting. This can be attributed to several factors. Firstly, investors are seeking higher returns on their investments in a low-interest-rate environment. Crowdinvesting offers the potential for attractive returns compared to traditional investment options. Secondly, investors are increasingly looking for opportunities to diversify their portfolios and reduce risk. Crowdinvesting allows investors to access a wide range of investment opportunities across different industries and sectors. Finally, there is a growing desire among investors to support local businesses and startups. Crowdinvesting provides a platform for individuals to invest in Canadian companies and contribute to the growth of the domestic economy.

Trends in the market:
One of the key trends in the Canadian crowdinvesting market is the emergence of specialized platforms catering to specific sectors or industries. These platforms focus on connecting investors with startups and businesses operating in niche areas such as technology, renewable energy, and real estate. This trend is driven by the increasing demand for sector-specific investment opportunities and the desire for investors to support businesses in industries they are passionate about. Another trend in the market is the rise of equity crowdfunding. Traditionally, crowdinvesting in Canada has been dominated by debt-based crowdfunding, where investors lend money to businesses in exchange for interest payments. However, there has been a shift towards equity crowdfunding, where investors receive equity or ownership stakes in the companies they invest in. This trend is driven by the potential for higher returns and the opportunity to participate in the success of startups and high-growth businesses.

Local special circumstances:
Canada has a vibrant startup ecosystem, with a large number of innovative companies and entrepreneurs seeking funding to fuel their growth. However, traditional funding sources such as banks and venture capital firms can be difficult to access for early-stage startups. Crowdinvesting provides an alternative source of funding for these companies, allowing them to raise capital from a broader pool of investors.

Underlying macroeconomic factors:
The Canadian economy has been performing well in recent years, with steady GDP growth and low unemployment rates. This positive economic environment has created a favorable backdrop for crowdinvesting, as investors have more disposable income to invest and are willing to take on higher-risk investments in search of higher returns. Additionally, the government has introduced supportive policies and regulations to encourage the growth of the crowdinvesting market, providing a conducive environment for startups and investors alike. In conclusion, the crowdinvesting market in Canada is experiencing growth due to customer preferences for alternative investments, trends such as specialized platforms and equity crowdfunding, local special circumstances in the startup ecosystem, and underlying macroeconomic factors that support investment activity. This market is likely to continue expanding as more investors recognize the benefits of crowdinvesting and more startups turn to this funding option to fuel their growth.

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.

Overview

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