Digital Capital Raising - Dominican Republic

The Dominican Republic is expected to see the total transaction value in the Digital Capital Raising market market reach US$132.10k by 2024.
MarketCrowdinvesting is set to dominate the market with a projected total transaction value of US$132.10k in 2024.
When compared globally, the United States leads with the highest cumulated transaction value of US$36bn in 2024.
The Dominican Republic is witnessing a surge in digital capital raising, with more companies leveraging technology to attract investors and raise funds efficiently.

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 Dominican Republic is experiencing significant growth and development.

Customer preferences: Dominican Republic has a young and tech-savvy population, with a high percentage of internet users. This has created a favorable environment for the growth of digital capital raising platforms. Investors in the country are increasingly looking for alternative investment opportunities, and digital platforms provide them with easy access to a wide range of investment options. Additionally, the convenience and transparency offered by digital platforms are appealing to investors who value efficiency and accessibility.

Trends in the market: One of the key trends in the Digital Capital Raising market in Dominican Republic is the rise of crowdfunding platforms. These platforms allow individuals to invest in startups and other high-growth potential ventures. This trend is driven by the increasing number of entrepreneurs in the country who are seeking funding for their ventures. Crowdfunding platforms provide them with a way to reach a larger pool of potential investors and raise the necessary capital. Another trend in the market is the emergence of peer-to-peer lending platforms. These platforms connect borrowers and lenders directly, bypassing traditional financial institutions. This trend is driven by the demand for easier and faster access to credit, especially among small business owners and individuals who may not qualify for traditional bank loans. Peer-to-peer lending platforms offer a streamlined application process and competitive interest rates, making them an attractive option for borrowers.

Local special circumstances: The Dominican Republic has a growing startup ecosystem, with a number of innovative companies emerging in sectors such as technology, tourism, and agriculture. These startups often face challenges in accessing capital, as traditional financing options may not be readily available to them. The rise of digital capital raising platforms provides these startups with an alternative source of funding, allowing them to grow and scale their businesses.

Underlying macroeconomic factors: The Dominican Republic has experienced steady economic growth in recent years, which has contributed to the development of the Digital Capital Raising market. The country has a stable political environment and a favorable business climate, which attracts both domestic and foreign investors. Additionally, the government has implemented policies to promote entrepreneurship and innovation, further supporting the growth of the digital capital raising market. In conclusion, the Digital Capital Raising market in Dominican Republic is growing rapidly, driven by customer preferences for convenience and transparency, as well as the emergence of crowdfunding and peer-to-peer lending platforms. The local startup ecosystem and favorable macroeconomic factors also contribute to the development of the market. As the market continues to evolve, it is expected to play an increasingly important role in the country's economic development.

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.