Crowdinvesting - Singapore

Singapore

Highlights

Singapore is expected to see the total transaction value in the Crowdinvesting market reach US$273.40m in 2024.
When comparing globally, the United Kingdom leads with the highest transaction value of US$608m in 2024.
In Singapore, Crowdinvesting in the Capital Raising market is gaining traction among tech startups seeking alternative funding sources for expansion.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Crowdinvesting market in Singapore has been experiencing significant growth in recent years, driven by customer preferences for alternative investment options, the rise of technology platforms, and favorable local special circumstances.

Customer preferences: Investors in Singapore are increasingly seeking alternative investment options that offer higher potential returns than traditional investment vehicles. Crowdinvesting provides an attractive opportunity for individuals to invest in startups and small businesses, which have the potential for rapid growth and high returns. This aligns with the preferences of Singaporean investors who are known for their risk appetite and willingness to explore new investment avenues.

Trends in the market: One of the key trends in the Crowdinvesting market in Singapore is the emergence of technology platforms that connect investors with entrepreneurs and businesses seeking funding. These platforms provide a convenient and efficient way for investors to browse investment opportunities, conduct due diligence, and make investments online. This trend has democratized the investment process, allowing individuals with smaller amounts of capital to participate in funding startups and small businesses. Another trend in the market is the increasing diversification of investment opportunities. While the initial focus of Crowdinvesting in Singapore was on tech startups, there has been a shift towards other sectors such as real estate, renewable energy, and consumer goods. This diversification provides investors with a wider range of investment options and allows them to allocate their capital across different industries and asset classes.

Local special circumstances: Singapore's strong regulatory framework and investor protection measures have played a significant role in the development of the Crowdinvesting market. The Monetary Authority of Singapore (MAS) has implemented regulations that promote transparency, investor education, and risk management in the market. These measures have instilled confidence in investors and have helped to attract both local and international players to the Singaporean market. Additionally, Singapore's status as a global financial hub and its supportive business environment have contributed to the growth of the Crowdinvesting market. The country's well-established infrastructure, access to capital, and strong network of entrepreneurs and investors make it an attractive destination for startups and small businesses seeking funding.

Underlying macroeconomic factors: The strong economic growth and favorable investment climate in Singapore have created a conducive environment for the development of the Crowdinvesting market. Singapore's robust financial services sector, stable political environment, and pro-business policies have attracted both local and international investors, driving demand for alternative investment options like Crowdinvesting. Furthermore, the increasing digitalization and technological advancements in Singapore have facilitated the growth of the Crowdinvesting market. The country's high internet penetration rate, widespread use of smartphones, and advanced fintech ecosystem have made it easier for investors to access and participate in Crowdinvesting platforms. In conclusion, the Crowdinvesting market in Singapore is experiencing growth due to customer preferences for alternative investment options, the emergence of technology platforms, favorable local special circumstances, and underlying macroeconomic factors. The market is expected to continue expanding as more investors recognize the potential of Crowdinvesting as a viable investment avenue.

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.