Market Insights Financial Capital Raising Digital Capital Raising

Crowdinvesting - Mexico

Mexico

The total transaction value in the Crowdinvesting market in Mexico is expected to reach US$1.35m by 2024.
When comparing globally, the United Kingdom leads with a transaction value of US$608m in 2024.
In Mexico, Crowdinvesting is gaining traction in the Capital Raising market, allowing diverse investment opportunities for both local and international investors.

Key regions: Europe, Australia, Brazil, China, Israel

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Analyst Opinion

The Crowdinvesting market in Mexico is experiencing significant growth and development.

Customer preferences: Mexican investors are increasingly turning to crowdinvesting as a way to diversify their investment portfolios and participate in the growth of innovative startups. This is driven by a desire for higher returns and the opportunity to support local businesses. Additionally, the younger generation of investors in Mexico is more open to alternative investment options, including crowdinvesting, compared to traditional forms of investment.

Trends in the market: One of the key trends in the crowdinvesting market in Mexico is the emergence of specialized platforms catering to specific sectors. These platforms focus on areas such as technology, renewable energy, and real estate, allowing investors to support projects that align with their interests and values. This trend is driven by the growing demand for investments in these sectors and the need for specialized expertise in evaluating and managing these types of projects. Another trend in the market is the increasing use of equity-based crowdinvesting. Previously, debt-based crowdinvesting, such as peer-to-peer lending, was more popular in Mexico. However, as investors become more familiar with the concept of equity-based crowdinvesting and its potential for higher returns, there has been a shift towards this type of investment. This trend is also supported by regulatory changes that have made it easier for startups to raise equity-based crowdinvesting capital.

Local special circumstances: Mexico has a vibrant startup ecosystem, with a growing number of innovative companies looking for funding. This provides a fertile ground for crowdinvesting platforms to connect these startups with investors. Additionally, the Mexican government has implemented various initiatives to support entrepreneurship and innovation, which further contributes to the growth of the crowdinvesting market.

Underlying macroeconomic factors: The growth of the crowdinvesting market in Mexico is also influenced by macroeconomic factors. Mexico has a large and young population, with a high level of smartphone penetration and internet usage. This creates a favorable environment for online investment platforms to reach a wide audience and attract investors. Furthermore, the Mexican economy has been experiencing steady economic growth, which has increased disposable income and investment opportunities. In conclusion, the crowdinvesting market in Mexico is experiencing significant growth and development, driven by customer preferences for diversification and higher returns, as well as the emergence of specialized platforms and the increasing use of equity-based crowdinvesting. The local startup ecosystem and government support for entrepreneurship also contribute to the market's growth. Furthermore, favorable macroeconomic factors, such as a large and young population and steady economic growth, create a conducive environment for the crowdinvesting market in Mexico.

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.