Digital Capital Raising - Denmark

The country in Denmark is expected to reach a total transaction value of US$66.14m in the Digital Capital Raising market market by 2024.
In the same year, MarketMarketplace Lending (Consumer) is anticipated to lead the market with a projected total transaction value of US$47.43m.
When comparing globally, the United States is set to achieve the highest cumulated transaction value of US$36bn in 2024.
Denmark is embracing digital platforms for capital raising, revolutionizing the traditional methods in the Danish capital market landscape.

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 Denmark has been experiencing significant growth in recent years, driven by customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors. Customer preferences in Denmark have shifted towards digital capital raising methods due to their convenience and accessibility.

Investors are increasingly turning to online platforms to find investment opportunities, as they offer a wide range of options and allow for easy comparison and analysis. Additionally, digital capital raising platforms provide a transparent and efficient process for both investors and companies seeking funding. Trends in the market have also contributed to the development of the Digital Capital Raising market in Denmark.

Crowdfunding has gained popularity as a way for entrepreneurs to raise capital for their projects, as it allows them to reach a large number of potential investors. Equity crowdfunding, in particular, has seen significant growth, as it offers investors the opportunity to invest in early-stage companies and potentially earn high returns. The rise of blockchain technology has also had an impact on the market, with the emergence of Initial Coin Offerings (ICOs) as a new way for companies to raise funds.

Local special circumstances in Denmark have further supported the growth of the Digital Capital Raising market. Denmark has a strong entrepreneurial culture and a supportive business environment, which encourages innovation and the development of new companies. The government has implemented policies and initiatives to promote entrepreneurship and attract foreign investment, creating a favorable environment for digital capital raising.

Underlying macroeconomic factors have also played a role in the development of the Digital Capital Raising market in Denmark. The country has a stable and well-regulated financial system, which instills confidence in investors and encourages them to participate in digital capital raising activities. Additionally, Denmark has a high level of internet penetration and digital literacy, making it easier for individuals to access and use online platforms for investment purposes.

In conclusion, the Digital Capital Raising market in Denmark is experiencing growth due to customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors. The convenience and accessibility of digital capital raising methods, along with the popularity of crowdfunding and the rise of blockchain technology, have driven the market's development. Denmark's supportive business environment, stable financial system, and high level of digital literacy have further contributed to this growth.

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.