Digital Capital Raising - Egypt | Statista Market Forecast

The Digital Capital Raising market market in Egypt is expected to see the total transaction value reach US$25.28m by 2024.
In Egypt, MarketMarketplace Lending (Consumer) is set to lead the market with a projected total transaction value of US$24.29m in 2024.
When comparing globally, the United States stands out with the highest cumulated transaction value of US$36bn in 2024.
Egypt's digital capital-raising market is experiencing a surge in blockchain-based crowdfunding platforms, revolutionizing access to funding for startups and SMEs.

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 Egypt is witnessing significant growth and development in recent years.

Customer preferences: Egyptian investors are increasingly turning to digital platforms for capital raising due to the convenience and accessibility they offer. Digital capital raising platforms provide investors with the opportunity to invest in a wide range of assets, including stocks, bonds, and real estate, without the need for traditional intermediaries. This allows investors to diversify their portfolios and access investment opportunities that were previously out of reach.

Trends in the market: One of the key trends in the digital capital raising market in Egypt is the rise of crowdfunding platforms. These platforms allow individuals to invest small amounts of money in startups and other ventures, giving them the opportunity to participate in the early stages of businesses with high growth potential. This trend is driven by the increasing number of entrepreneurs and startups in Egypt, as well as the growing interest in venture capital investments. Another trend in the market is the digitization of traditional capital raising methods. Traditional methods, such as initial public offerings (IPOs) and private placements, are being digitized to streamline the process and make it more efficient. This allows companies to raise capital faster and at a lower cost, while also providing investors with a more transparent and accessible investment process.

Local special circumstances: Egypt has a young and tech-savvy population, which is driving the adoption of digital capital raising platforms. The country has a high smartphone penetration rate and a growing internet user base, making it an ideal market for digital financial services. Additionally, the government has been actively promoting digital innovation and entrepreneurship, creating a favorable environment for the growth of the digital capital raising market.

Underlying macroeconomic factors: Egypt's economy has been growing steadily in recent years, driven by reforms and investments in key sectors such as energy, infrastructure, and tourism. This economic growth has increased the disposable income of the population, creating a larger pool of potential investors. Additionally, the government has implemented regulatory reforms to attract foreign investment and support the growth of the digital economy, including the establishment of a regulatory framework for digital financial services. In conclusion, the Digital Capital Raising market in Egypt is experiencing significant growth and development, driven by customer preferences for convenience and accessibility, as well as the favorable local circumstances and macroeconomic factors. The rise of crowdfunding platforms and the digitization of traditional capital raising methods are key trends in the market, providing investors with new opportunities and companies with more efficient ways to raise capital. With the government's support and the country's growing economy, the digital capital raising market in Egypt is expected to continue to thrive in the coming years.

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.