The Crowdinvesting market in Latvia has been steadily growing in recent years, driven by customer preferences for alternative investment options and the local special circumstances in the country.
Customer preferences: Latvian investors have shown a growing interest in crowdinvesting as an alternative investment option. This is partly due to the relatively low interest rates offered by traditional financial institutions, which has led investors to seek higher returns elsewhere. Crowdinvesting platforms offer individuals the opportunity to invest in a wide range of projects, including startups, real estate developments, and renewable energy projects. This allows investors to diversify their portfolios and potentially earn higher returns compared to traditional investment options.
Trends in the market: One of the key trends in the Latvian crowdinvesting market is the increasing participation of retail investors. Previously, crowdinvesting was primarily dominated by institutional investors and high-net-worth individuals. However, the emergence of user-friendly online platforms has made crowdinvesting more accessible to retail investors. This has led to a larger pool of investors and increased competition for investment opportunities. Another trend in the market is the focus on socially responsible investments. Investors in Latvia are increasingly interested in projects that have a positive social or environmental impact. This trend aligns with the global shift towards sustainable investing and reflects the values of Latvian investors who are conscious of the social and environmental impact of their investments.
Local special circumstances: Latvia has a vibrant startup ecosystem, which has contributed to the growth of the crowdinvesting market. The country has a high number of innovative startups in sectors such as technology, biotechnology, and fintech. These startups often rely on crowdinvesting as a source of funding to fuel their growth. The availability of crowdinvesting platforms has made it easier for startups to connect with potential investors and raise the necessary capital to bring their ideas to life. The Latvian government has also played a role in promoting the crowdinvesting market. In recent years, the government has introduced regulations and incentives to support crowdfunding and crowdinvesting activities. This has provided a favorable regulatory environment for both investors and entrepreneurs, further stimulating the growth of the crowdinvesting market.
Underlying macroeconomic factors: The Latvian economy has been growing steadily in recent years, which has created a favorable environment for investment. The country has a stable political and economic climate, making it an attractive destination for both domestic and foreign investors. Additionally, the government has implemented policies to promote entrepreneurship and innovation, which has fostered a supportive ecosystem for crowdinvesting. Overall, the crowdinvesting market in Latvia is developing due to customer preferences for alternative investments, the local special circumstances of a vibrant startup ecosystem and supportive government policies, and the underlying macroeconomic factors of a growing economy and stable investment climate.
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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