Market Insights Financial Capital Raising Digital Capital Raising

Crowdinvesting - Northern Africa

Northern Africa

The total transaction value in the Crowdinvesting market in Northern Africa is forecasted to reach US$1.2m in 2024.
When compared globally, the United Kingdom leads with a transaction value of US$608m in 2024.
Crowdinvesting in Egypt's capital raising market is gaining traction, offering investors diverse opportunities in real estate, technology, and renewable energy sectors.

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

Market

Region

Region comparison

Currency

Analyst Opinion

The Crowdinvesting market in Northern Africa has been steadily growing in recent years, driven by customer preferences for alternative investment options and the rise of digital platforms. Customer preferences in Northern Africa have shifted towards seeking out alternative investment options, as individuals look for ways to diversify their portfolios and generate higher returns.

Crowdinvesting provides an opportunity for individuals to invest in startups and small businesses, which can offer high growth potential. Additionally, the convenience and accessibility of digital platforms have made it easier for individuals in Northern Africa to participate in crowdinvesting campaigns. Trends in the market show that the crowdinvesting sector in Northern Africa is becoming more mature and sophisticated.

As the market has developed, there has been an increase in the number of crowdinvesting platforms and campaigns, offering a wider range of investment opportunities. This has attracted a larger pool of investors, both locally and internationally, who are interested in supporting innovative projects in the region. Local special circumstances, such as a growing entrepreneurial ecosystem and a need for funding, have also contributed to the development of the crowdinvesting market in Northern Africa.

The region has seen a rise in startups and small businesses, driven by a young and educated population. However, traditional sources of funding, such as banks, may be less accessible for these entrepreneurs. Crowdinvesting provides an alternative source of capital, allowing startups and small businesses to raise funds and grow their operations.

Underlying macroeconomic factors have also played a role in the growth of the crowdinvesting market in Northern Africa. Economic reforms and government initiatives to support entrepreneurship and innovation have created a favorable environment for startups and small businesses. Additionally, the increasing use of digital technology and internet penetration in the region has made it easier for crowdinvesting platforms to reach a wider audience and attract investors.

In conclusion, the crowdinvesting market in Northern Africa is developing due to customer preferences for alternative investments, the maturation of the market, local special circumstances, and underlying macroeconomic factors. As the market continues to grow, it is expected to provide more opportunities for investors and contribute to the growth of the entrepreneurial ecosystem in the region.

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.