Crowdinvesting - Estonia

Estonia

Highlights

in Estonia, a country Northern_Europe, is projected to see the total transaction value in the Crowdinvesting market reach US$255.40k in 2024.
When comparing this figure globally, it is noteworthy that the United Kingdom is expected to reach the highest transaction value of US$608m in the same year.
Estonia's burgeoning tech scene is fueling a surge in crowdinvesting, with innovative startups attracting a wave of local and international investors.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Crowdinvesting market in Estonia has been experiencing significant growth in recent years, driven by customer preferences for alternative investment options and the local special circumstances that make Estonia an attractive market for crowdfunding.

Customer preferences: Estonian investors have shown a growing interest in alternative investment options, such as crowdinvesting, due to the potential for higher returns compared to traditional investment products. Crowdinvesting platforms provide individuals with the opportunity to invest in a diverse range of projects and startups, allowing them to diversify their investment portfolio and potentially earn higher profits. Additionally, the transparency and accessibility of crowdinvesting platforms have appealed to investors who value being able to directly participate in the growth of innovative businesses.

Trends in the market: One of the key trends in the crowdinvesting market in Estonia is the increasing number of platforms and projects available for investment. As the popularity of crowdinvesting grows, more platforms are emerging to cater to the demand from both investors and entrepreneurs seeking funding. This trend has led to a wider variety of investment opportunities, ranging from real estate projects to technology startups. Another trend in the market is the focus on sustainability and socially responsible investments. Estonian investors are showing a preference for projects that have a positive impact on society and the environment. This trend is reflected in the types of projects that are being funded through crowdinvesting platforms, with a significant number of projects in the renewable energy and clean technology sectors.

Local special circumstances: Estonia's strong entrepreneurial culture and supportive startup ecosystem have contributed to the growth of the crowdinvesting market. The country has a high number of startups per capita and is known for its innovative and tech-savvy population. This environment has created a fertile ground for crowdfunding, as entrepreneurs seek alternative sources of funding to fuel their growth. Additionally, Estonia's digital infrastructure and e-governance initiatives have made it easier for crowdinvesting platforms to operate and for investors to participate. The country has a highly developed digital infrastructure, which enables seamless online transactions and ensures the security of investor funds. This favorable environment has attracted both local and international crowdinvesting platforms to establish a presence in Estonia.

Underlying macroeconomic factors: The overall economic stability and growth of Estonia have also played a role in the development of the crowdinvesting market. The country has experienced steady economic growth in recent years, driven by sectors such as information technology, manufacturing, and services. This favorable economic climate has increased investor confidence and willingness to explore alternative investment options. Furthermore, Estonia's membership in the European Union has provided access to a larger market and increased cross-border investment opportunities. This has allowed crowdinvesting platforms in Estonia to attract investors from other EU countries, further fueling the growth of the market. In conclusion, the crowdinvesting market in Estonia is developing rapidly due to customer preferences for alternative investment options, the increasing number of platforms and projects available, the country's entrepreneurial culture and supportive startup ecosystem, and the overall economic stability and growth of Estonia. These factors, combined with Estonia's digital infrastructure and EU membership, have created a conducive environment for the growth of crowdinvesting in the country.

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.