Crowdinvesting - Egypt

  • Egypt
  • Egypt is projected to reach a total transaction value of US$1.0m in the Crowdinvesting market by 2024.
  • When compared globally, the United Kingdom is expected to have the highest transaction value, reaching US$608m in 2024.
  • Egypt's crowdinvesting market is gaining traction, offering innovative funding opportunities for startups amidst a growing entrepreneurial ecosystem.

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

 
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Analyst Opinion

Crowdinvesting, a form of crowdfunding where individuals invest in projects or businesses in exchange for equity or profit-sharing, is gaining popularity in Egypt.

Customer preferences:
Egyptian investors are increasingly turning to crowdinvesting as a way to diversify their investment portfolios and support local businesses. They are attracted to the potential high returns offered by crowdinvesting, as well as the opportunity to contribute to the growth of the Egyptian economy. 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 Egypt is the emergence of platforms that focus on specific sectors such as technology, renewable energy, and real estate. These platforms cater to the specific interests and preferences of investors, allowing them to invest in projects that align with their values and beliefs. This trend reflects the growing maturity of the crowdinvesting market in Egypt, as investors become more sophisticated in their investment choices. Another trend in the market is the increasing participation of institutional investors. As crowdinvesting gains credibility and becomes more regulated, institutional investors such as venture capital firms and private equity funds are starting to invest in crowdinvesting platforms and projects. This trend brings additional capital and expertise into the market, further fueling its growth.

Local special circumstances:
Egypt's large and young population, coupled with a growing middle class, provides a fertile ground for the development of the crowdinvesting market. The country has a vibrant entrepreneurial ecosystem, with many startups and small businesses looking for funding to grow and expand. Crowdinvesting provides an alternative source of funding for these businesses, allowing them to access capital that may not be available through traditional channels.

Underlying macroeconomic factors:
Several macroeconomic factors contribute to the development of the crowdinvesting market in Egypt. The government has implemented economic reforms aimed at attracting foreign direct investment and stimulating economic growth. These reforms have created a favorable business environment, making Egypt an attractive destination for both local and international investors. Furthermore, advancements in technology and the widespread use of smartphones have made it easier for individuals to access crowdinvesting platforms and invest in projects. The increasing internet penetration rate in Egypt has also contributed to the growth of the crowdinvesting market, as more people have access to online investment opportunities. In conclusion, the crowdinvesting market in Egypt is developing due to customer preferences for diversification, high returns, and supporting local businesses. The emergence of sector-specific platforms and the participation of institutional investors are key trends in the market. Egypt's large and young population, growing middle class, favorable business environment, and advancements in technology are all contributing to the growth of the crowdinvesting market in the country.

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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