Crowdinvesting - Cyprus

Cyprus

Highlights

Cyprus is a country where the total transaction value in the Crowdinvesting market is projected to reach US$42.55k in 2024.
When compared globally, it is evident that the highest transaction value is reached the United Kingdom (US$608m in 2024).
Cyprus is experiencing a surge in crowdinvesting activities, with a growing number of startups turning to online platforms for capital raising.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Crowdinvesting market in Cyprus has seen significant development and growth in recent years.

Customer preferences: One of the key reasons for the growth of the Crowdinvesting market in Cyprus is the increasing preference of investors for alternative investment options. Traditional investment avenues such as stocks and bonds have become saturated, leading investors to seek out new opportunities. Crowdinvesting provides a unique platform for individuals to invest in startups and small businesses, allowing them to diversify their investment portfolio and potentially earn higher returns.

Trends in the market: One of the major trends in the Crowdinvesting market in Cyprus is the rise of equity crowdfunding. Equity crowdfunding allows individuals to invest in early-stage companies in exchange for equity ownership. This trend has gained traction in Cyprus as it provides a platform for startups to raise capital and grow their businesses. Additionally, equity crowdfunding allows investors to support innovative ideas and potentially benefit from the success of these ventures. Another trend in the Crowdinvesting market in Cyprus is the emergence of real estate crowdfunding. Real estate has always been a popular investment option, and crowdfunding has made it more accessible to a wider range of investors. Real estate crowdfunding platforms in Cyprus allow individuals to invest in properties, either through debt or equity investments. This trend has attracted both local and international investors, as it provides an opportunity to diversify their investment portfolio and potentially earn passive income from rental properties.

Local special circumstances: Cyprus has a vibrant startup ecosystem, with a number of innovative companies emerging in various sectors such as technology, finance, and tourism. These startups often face challenges in accessing capital from traditional sources, such as banks and venture capitalists. Crowdinvesting platforms provide a solution to this problem by connecting these startups with a pool of potential investors. This has created a win-win situation, where startups can raise the necessary capital to grow their businesses, and investors can support promising ventures and potentially earn attractive returns.

Underlying macroeconomic factors: The economic recovery of Cyprus after the financial crisis has played a significant role in the development of the Crowdinvesting market. As the economy stabilized and investor confidence returned, individuals became more willing to invest in alternative assets such as Crowdinvesting. The government has also introduced supportive policies and regulations to encourage the growth of the crowdfunding industry. These factors have created a favorable environment for the development of the Crowdinvesting market in Cyprus. In conclusion, the Crowdinvesting market in Cyprus has experienced significant growth due to the increasing preference for alternative investments, the rise of equity and real estate crowdfunding, the vibrant startup ecosystem, and the underlying macroeconomic factors. With the continued support from the government and the increasing awareness among investors, the Crowdinvesting market in Cyprus is expected to continue its upward trajectory in the coming years.

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.