Crowdinvesting - Iceland

Iceland

Highlights

The total transaction value in the Crowdinvesting market in Iceland is projected to reach US$246.00k in 2024.
When compared globally, it is evident that the highest transaction value is achieved the United Kingdom (US$608m in 2024).
Iceland's crowdinvesting market in capital raising is gaining traction among tech start-ups seeking alternative funding sources.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Crowdinvesting market in Iceland has been showing positive growth and development in recent years.

Customer preferences: Investors in Iceland have shown a growing interest in crowdinvesting as a means of investment. This can be attributed to several factors. Firstly, crowdinvesting provides an opportunity for investors to diversify their portfolios and invest in a wide range of projects and businesses. Secondly, crowdinvesting allows investors to support local businesses and startups, which is appealing to those who value community development and entrepreneurship. Lastly, crowdinvesting platforms often offer lower investment minimums compared to traditional investment options, making it accessible to a larger pool of investors.

Trends in the market: One notable trend in the crowdinvesting market in Iceland is the emergence of platforms that specialize in specific industries or sectors. For example, there are now crowdinvesting platforms that focus exclusively on renewable energy projects or technology startups. This specialization allows investors to target their investments in areas that align with their interests or expertise. Another trend in the market is the increasing use of equity-based crowdinvesting. While debt-based crowdinvesting has been more prevalent in the past, there is a growing demand for equity-based investments. This shift can be attributed to the potential for higher returns and the opportunity to become a shareholder in a promising business.

Local special circumstances: Iceland has a unique business landscape that contributes to the development of the crowdinvesting market. The country has a strong entrepreneurial culture and a supportive ecosystem for startups. This environment encourages innovation and attracts investors who are interested in supporting new ventures. Additionally, Iceland has a small population which creates a close-knit community where word-of-mouth referrals and personal connections play a significant role in business and investment decisions. This makes crowdinvesting an attractive option for both entrepreneurs and investors.

Underlying macroeconomic factors: The growth of the crowdinvesting market in Iceland can also be attributed to underlying macroeconomic factors. Iceland has experienced a period of economic stability and growth in recent years, which has increased investor confidence and willingness to invest in new ventures. Additionally, the government has implemented policies and initiatives to support entrepreneurship and innovation, further fostering the development of the crowdinvesting market. In conclusion, the crowdinvesting market in Iceland is developing and growing due to customer preferences for diversification, support for local businesses, and accessibility. The market is characterized by the emergence of specialized platforms and a shift towards equity-based investments. The unique business landscape and supportive ecosystem in Iceland contribute to the growth of the crowdinvesting market, along with underlying macroeconomic factors such as economic stability and government support.

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.