Crowdinvesting, a form of crowdfunding that allows individuals to invest in early-stage companies and projects, is gaining traction in Iraq. This emerging market is driven by customer preferences for alternative investment opportunities, a growing entrepreneurial ecosystem, and local special circumstances that create unique opportunities for crowdinvesting.
Customer preferences in Iraq are shifting towards alternative investment opportunities as individuals seek higher returns and diversification. Traditionally, Iraqis have relied on traditional investment vehicles such as real estate and gold. However, the low interest rates and limited investment options in these sectors have prompted investors to explore new avenues.
Crowdinvesting offers the potential for higher returns and the opportunity to support local businesses and startups, which resonates with the growing number of socially conscious investors in Iraq. The crowdinvesting market in Iraq is also benefiting from the country's burgeoning entrepreneurial ecosystem. As the economy diversifies and startups emerge across various sectors, entrepreneurs are seeking funding to fuel their growth.
Crowdinvesting provides a viable alternative to traditional sources of capital, such as banks and venture capitalists, which may be inaccessible or reluctant to invest in early-stage ventures. This has created a symbiotic relationship between entrepreneurs and investors, driving the growth of the crowdinvesting market. Local special circumstances in Iraq contribute to the development of the crowdinvesting market.
The country's large youth population, estimated to be over 60% of the total population, is increasingly tech-savvy and digitally connected. This demographic is more open to new investment opportunities and is willing to embrace innovative platforms like crowdinvesting. Additionally, Iraq's informal economy, which accounts for a significant portion of economic activity, creates a fertile ground for crowdinvesting.
Many small businesses and startups operate outside the formal banking sector, making it difficult for them to access traditional financing. Crowdinvesting platforms provide an alternative avenue for these businesses to raise capital and grow. Underlying macroeconomic factors also play a role in the development of the crowdinvesting market in Iraq.
The country's economic growth, driven by oil revenues and government investment in infrastructure, has created a favorable environment for startups and entrepreneurial activity. As the economy diversifies, there is an increased demand for funding, which crowdinvesting can fulfill. Additionally, the government's efforts to promote entrepreneurship and innovation through initiatives like the National Investment Commission and the Technology and Innovation Center have created a supportive ecosystem for crowdinvesting.
In conclusion, the crowdinvesting market in Iraq is developing due to customer preferences for alternative investments, a growing entrepreneurial ecosystem, local special circumstances, and underlying macroeconomic factors. As more individuals seek higher returns and diversification, crowdinvesting provides an attractive investment option. The country's entrepreneurial ecosystem and informal economy create opportunities for startups and small businesses to access funding through crowdinvesting platforms.
Furthermore, Iraq's economic growth and government initiatives support the development of the crowdinvesting market.
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.
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