Crowdinvesting, also known as equity crowdfunding, is gaining traction in South America as a means for entrepreneurs and small businesses to raise capital. This alternative form of financing allows individuals to invest in early-stage companies in exchange for equity or other forms of ownership.
Customer preferences in South America are shifting towards more inclusive investment opportunities. Traditionally, access to investment opportunities was limited to high-net-worth individuals and institutional investors. However, crowdinvesting platforms are democratizing the investment landscape by allowing anyone to participate, regardless of their financial status.
This appeals to a wider range of investors who are looking for new ways to diversify their portfolios and support local businesses. One of the key trends in the crowdinvesting market in South America is the focus on social impact. Investors are increasingly interested in supporting businesses that have a positive social or environmental impact.
This aligns with the growing awareness of sustainability and corporate social responsibility in the region. Crowdinvesting platforms are capitalizing on this trend by curating investment opportunities that have a clear social mission or contribute to sustainable development goals. Another trend in the market is the emergence of sector-specific crowdinvesting platforms.
These platforms cater to niche industries such as technology, renewable energy, and agriculture. By focusing on specific sectors, these platforms are able to provide investors with targeted investment opportunities that match their interests and expertise. This specialization also helps to build trust and credibility within the investor community, as the platforms are seen as experts in their respective industries.
Local special circumstances in South America play a role in the development of the crowdinvesting market. The region has a vibrant startup ecosystem, with a growing number of innovative entrepreneurs looking for funding. However, traditional sources of capital, such as banks and venture capitalists, are often reluctant to invest in early-stage companies due to the perceived risks involved.
Crowdinvesting provides an alternative funding option for these entrepreneurs, allowing them to access capital and grow their businesses. Underlying macroeconomic factors also contribute to the growth of the crowdinvesting market in South America. The region has experienced economic volatility in recent years, with fluctuations in currency exchange rates and political instability.
This has led to a cautious approach from investors, who are seeking alternative investment opportunities that offer higher returns and lower risks. Crowdinvesting platforms provide a way for investors to diversify their portfolios and potentially earn higher returns, while also supporting local businesses. In conclusion, the crowdinvesting market in South America is developing rapidly due to changing customer preferences, sector-specific platforms, local special circumstances, and underlying macroeconomic factors.
As more entrepreneurs and investors embrace this alternative form of financing, the market is expected to continue to grow and evolve in the coming years.
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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