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Crowdinvesting - Colombia

Colombia

The total transaction value in the Crowdinvesting market in Colombia is expected to reach US$0.4m in 2024.
When compared globally, it is evident that the United Kingdom leads with a transaction value of US$608m in 2024.
Colombia's crowdinvesting market is gaining traction, offering diverse opportunities for capital raising in the country's dynamic business landscape.

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

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Analyst Opinion

The Crowdinvesting market in Colombia is experiencing significant growth and development.

Customer preferences: Colombian investors are increasingly turning to Crowdinvesting as a way to diversify their investment portfolios and support local businesses. They are attracted to the potential for high returns and the opportunity to invest in innovative startups and projects. Additionally, the ease of investing online and the ability to invest small amounts of money are appealing to a wide range of investors.

Trends in the market: One of the key trends in the Crowdinvesting market in Colombia is the emergence of platforms that cater to specific industries or sectors. These platforms provide investors with a curated selection of investment opportunities that align with their interests and expertise. This trend reflects the growing demand for specialized investment opportunities and the desire for investors to have more control over where their money is invested. Another trend in the market is the increasing popularity of equity-based Crowdinvesting. This type of investment allows individuals to become shareholders in a company and potentially benefit from its growth and success. Equity-based Crowdinvesting is particularly attractive to entrepreneurs and startups that are looking for alternative sources of funding and want to engage their customers and supporters in their business.

Local special circumstances: Colombia has a vibrant and dynamic startup ecosystem, which is driving the growth of the Crowdinvesting market. The country has a strong culture of entrepreneurship and a supportive regulatory environment for startups. Additionally, the government has implemented initiatives to promote innovation and entrepreneurship, such as tax incentives and grants for startups. These factors contribute to a favorable environment for Crowdinvesting platforms to thrive and attract both investors and entrepreneurs.

Underlying macroeconomic factors: The economic growth and stability in Colombia are important factors contributing to the development of the Crowdinvesting market. With a growing middle class and increasing disposable income, more individuals have the financial means to invest in startups and projects. Additionally, the low interest rates in the country make traditional investment options less attractive, leading investors to seek alternative investment opportunities like Crowdinvesting. In conclusion, the Crowdinvesting market in Colombia is experiencing significant growth and development due to customer preferences for diversification and support of local businesses, as well as the emergence of specialized platforms and the popularity of equity-based investments. The country's vibrant startup ecosystem and supportive regulatory environment, along with favorable macroeconomic factors, contribute to the growth of the market.

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.