CrowdLending (Business) - Denmark

Denmark

Highlights

The total transaction value in the Crowdlending (Business) market market in Denmark is expected to reach US$12.88m by 2024.
When comparing globally, it is evident that China leads with a transaction value of US$16bn in 2024.
Denmark's CrowdLending market is gaining momentum as more local businesses turn to alternative capital raising methods for funding growth.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The CrowdLending (Business) market in Denmark has been experiencing significant growth in recent years, driven by a combination of customer preferences, market trends, local special circumstances, and underlying macroeconomic factors.

Customer preferences: In Denmark, businesses have shown a growing preference for CrowdLending as a financing option. This can be attributed to several factors. Firstly, businesses appreciate the speed and convenience of the CrowdLending process, as it allows them to access funds quickly and easily without the need for extensive paperwork or lengthy approval processes. Secondly, CrowdLending platforms often offer competitive interest rates, which can be appealing to businesses seeking affordable financing options. Lastly, the transparency and accessibility of CrowdLending platforms have resonated with Danish businesses, as they value the ability to connect directly with individual lenders and build relationships based on trust and mutual benefit.

Trends in the market: One of the key trends in the Danish CrowdLending (Business) market is the increasing diversification of funding sources. As businesses become more familiar with the benefits of CrowdLending, they are increasingly turning to these platforms as a viable alternative to traditional bank loans. This trend is also driven by the growing number of CrowdLending platforms in Denmark, which has created a competitive market environment. As a result, businesses have more options to choose from and can select the platform that best suits their specific needs and preferences. Another trend in the Danish CrowdLending (Business) market is the emergence of specialized platforms catering to specific industries or sectors. These platforms understand the unique financing requirements of businesses in certain sectors and tailor their offerings accordingly. For example, there are CrowdLending platforms that focus exclusively on renewable energy projects, providing businesses in this sector with specialized funding options. This trend reflects the growing sophistication of the Danish CrowdLending market and its ability to meet the diverse needs of businesses across different industries.

Local special circumstances: Denmark has a well-established culture of entrepreneurship and innovation, which has contributed to the growth of the CrowdLending (Business) market. Danish businesses are known for their ability to adapt to changing market conditions and embrace new technologies and financing models. This entrepreneurial spirit has created a fertile ground for the development of CrowdLending platforms, as businesses are open to exploring alternative funding options and are willing to embrace new ways of doing business.

Underlying macroeconomic factors: The Danish economy has been performing well in recent years, with steady GDP growth and low unemployment rates. This favorable macroeconomic environment has created a conducive climate for businesses to thrive and has increased the demand for financing options. CrowdLending has emerged as a viable solution for businesses looking to expand or invest in new projects, as it provides them with access to capital in a timely and efficient manner. Additionally, the low interest rate environment in Denmark has made borrowing more affordable, further incentivizing businesses to explore CrowdLending as a financing option. In conclusion, the CrowdLending (Business) market in Denmark is experiencing growth due to customer preferences for speed, convenience, and transparency, as well as the increasing diversification of funding sources and the emergence of specialized platforms. The local entrepreneurial culture and favorable macroeconomic conditions have also played a significant role in driving the development of the market. As the Danish economy continues to evolve, it is expected that the CrowdLending (Business) market will continue to expand and evolve to meet the changing needs of businesses in the country.

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.