Digital Capital Raising - Cyprus | Statista Market Forecast

Cyprus is a country where the total transaction value in the Digital Capital Raising market market is projected to reach US$4.72m in 2024.
MarketCrowdlending (Business) dominates the market with a projected total transaction value of US$4.67m in 2024.
It is notable that from a global comparison perspective, the highest cumulated transaction value is reached the United States (US$36bn in 2024).
Cyprus is embracing blockchain technology to facilitate digital capital raising, positioning itself as a hub for innovative fundraising solutions in the capital market.

Definition:

The Digital Caiptal Raising segment relates to digital financial services for business customers, and private borrowers. Included are Crowdinvesting models, which focus particularly on start-ups exchanging investment for company shares (equity-based), and Crowdfunding solutions, which are used for non-monetary compensation, for example product launches, music, art & film financing (reward-based). The market also includes bank-independent loan allocation for SMEs (Crowdlending) and for personal loans (Marketplace Lending or so-called Peer-to-Peer lending) through private or institutional investors via online platforms. In view of processing complexity, this market is focused on small and medium-sized enterprises (SMEs), freelancers and private persons. Bank financing is not considered, neither are any financial aspects that reach beyond the scope of small and medium-sized enterprises or donation-based Crowdfunding models.

Structure:

Digital Capital Raising consists of Reward-Based Crowdfunding, Crowdinvesting, Crowdlending and Marketplace Lending.

Additional Information:

The market comprises of transaction values, campaigns, average funding per campaign.

Alternative financing for SMEs and freelancers
Equity-based Crowdfunding (or Crowdinvesting)
Reward-based Crowdfunding (or Crowdfunding)
Alternative lending for SMEs and freelancers (bank-independent loans)
Online marketplaces for personal loan applications and private investors
Peer-to-Peer loans with interest rates depending on internal credit scoring of the platform provider

Traditional bank loans
Traditional venture capital investments by institutional or private investors

The Digital Capital Raising market in Cyprus is experiencing significant growth and development. Customer preferences are shifting towards digital platforms for raising capital, and this trend is being driven by several factors.

Additionally, there are local special circumstances in Cyprus that are contributing to the growth of the digital capital raising market. Furthermore, underlying macroeconomic factors are also playing a role in the development of this market. Customer preferences in Cyprus are increasingly favoring digital platforms for capital raising.

This can be attributed to the convenience and accessibility offered by these platforms. With digital capital raising, individuals and businesses can access a wide range of investment opportunities from the comfort of their own homes. This is particularly appealing to tech-savvy investors who are comfortable with online transactions and prefer the speed and efficiency of digital platforms.

Additionally, digital capital raising platforms often provide a more streamlined and transparent process, which can increase investor confidence and participation. Trends in the market indicate that the digital capital raising sector in Cyprus is growing rapidly. This can be seen in the increasing number of digital platforms and crowdfunding initiatives that are emerging in the country.

These platforms are attracting a diverse range of investors, including both retail and institutional investors. Furthermore, there is a growing trend towards niche crowdfunding platforms that cater to specific industries or sectors, such as technology startups or renewable energy projects. This specialization allows investors to focus on areas that align with their interests and expertise, while also providing opportunities for businesses to connect with targeted investor groups.

Local special circumstances in Cyprus are also contributing to the development of the digital capital raising market. The country has a vibrant startup ecosystem, with a growing number of innovative companies seeking funding. These startups often face challenges when it comes to accessing traditional sources of capital, such as banks or venture capital firms.

As a result, many are turning to digital capital raising platforms as a means of securing funding. Additionally, Cyprus has a large diaspora community, with many Cypriots living abroad who are interested in investing in their home country. Digital platforms provide a convenient and efficient way for these individuals to invest in Cyprus-based projects and businesses.

Underlying macroeconomic factors are also playing a role in the growth of the digital capital raising market in Cyprus. The country has a strong and stable economy, which is attracting both domestic and international investors. Additionally, the government has implemented policies and initiatives to support entrepreneurship and innovation, which is creating a favorable environment for startups and digital capital raising.

Furthermore, Cyprus is strategically located at the crossroads of Europe, Asia, and Africa, making it an attractive destination for businesses and investors looking to tap into multiple markets. In conclusion, the Digital Capital Raising market in Cyprus is experiencing significant growth and development. Customer preferences are shifting towards digital platforms for capital raising, driven by convenience and accessibility.

Trends in the market indicate a growing number of digital platforms and crowdfunding initiatives. Local special circumstances, such as a vibrant startup ecosystem and a large diaspora community, are contributing to the growth of the market. Underlying macroeconomic factors, including a strong economy and supportive government policies, are also playing a role in the development of the digital capital raising market in Cyprus.

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.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

Crowdfunding is the collective effort of a large number of individuals who network and pool small amounts of capital to finance a new or existing business venture. Each campaign is set for a goal amount of money and a fixed timeframe, each day is counted down and the money raised will be tallied up for visitors to follow its success. The size of the global crowdfunding market is growing and the largest markets are North America and Asia.