Digital Capital Raising - Eastern Asia

The total transaction value in Eastern Asia's Digital Capital Raising market market is expected to reach US$17.44bn by 2024.
MarketCrowdlending (Business) leads the market with a projected total transaction value of US$16.64bn in 2024.
When compared globally, the United States is set to achieve the highest cumulated transaction value of US$36bn in 2024.
Digital Capital Raising in Japan's Capital Raising market is seeing a surge in blockchain-based fundraising platforms, revolutionizing traditional investment processes.

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 Eastern Asia is experiencing significant growth and development. This can be attributed to various factors including customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors.

Customer preferences in Eastern Asia are driving the growth of the Digital Capital Raising market. With the increasing adoption of technology and digital platforms, customers are becoming more comfortable with online transactions and are seeking convenient and efficient ways to raise capital. Additionally, the younger generation in Eastern Asia, who are more tech-savvy, are increasingly turning to digital channels for their financial needs.

This shift in customer preferences towards digital capital raising platforms is fueling the growth of the market. Trends in the market are also playing a significant role in the development of the Digital Capital Raising market in Eastern Asia. One key trend is the rise of crowdfunding platforms.

These platforms allow individuals and businesses to raise capital from a large number of investors, often through small contributions. This democratization of capital raising has gained popularity in Eastern Asia, as it provides an alternative to traditional financing options and allows for greater access to funding for startups and small businesses. Another trend in the market is the increasing use of blockchain technology for capital raising.

Blockchain technology offers transparency, security, and efficiency in the capital raising process, making it an attractive option for businesses and investors in Eastern Asia. The use of blockchain technology also enables the issuance of digital assets, such as cryptocurrencies, which can be used for capital raising purposes. Local special circumstances in Eastern Asia are also contributing to the growth of the Digital Capital Raising market.

For example, in countries like China and South Korea, where traditional banking systems may be less developed or less accessible, digital capital raising platforms provide an alternative source of funding for businesses and individuals. Additionally, the presence of a large and active investor community in Eastern Asia further supports the growth of the market, as there is a demand for investment opportunities. Underlying macroeconomic factors in Eastern Asia are also driving the development of the Digital Capital Raising market.

The region's strong economic growth and increasing disposable income levels have created a favorable environment for capital raising activities. Additionally, government initiatives to promote entrepreneurship and innovation, coupled with supportive regulatory frameworks, have encouraged the growth of the market. In conclusion, the Digital Capital Raising market in Eastern Asia is experiencing significant growth and development due to customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors.

The increasing adoption of technology, the rise of crowdfunding platforms, the use of blockchain technology, and favorable macroeconomic conditions are all contributing to the growth of the market. As the market continues to evolve, it is expected to play an increasingly important role in the capital raising landscape in Eastern Asia.

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.