Digital Capital Raising - Georgia

Georgia is expected to see the Digital Capital Raising market market's total transaction value reach US$1.47m in 2024.
In the same year, MarketCrowdlending (Business) is projected to dominate the market with a total transaction value of US$902.00k.
When compared globally, the United States leads with a cumulated transaction value of US$36bn in 2024.
In Georgia, the trend of utilizing digital platforms for capital raising is gaining momentum in the evolving 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 Georgia is experiencing significant growth and development in recent years.

Customer preferences: In line with global trends, customers in Georgia are increasingly turning to digital platforms for capital raising activities. This shift in customer preferences can be attributed to several factors. Firstly, digital platforms provide convenience and efficiency, allowing customers to access capital raising services from anywhere, at any time. Secondly, digital platforms often offer a wider range of investment opportunities, allowing customers to diversify their portfolios and potentially earn higher returns. Lastly, the transparency and accessibility of digital platforms appeal to customers who value information and control over their investment decisions.

Trends in the market: One major trend in the Digital Capital Raising market in Georgia 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. Crowdfunding has gained popularity in Georgia due to its ability to democratize access to capital and support innovative projects. This trend is further fueled by the growing interest in impact investing, with customers seeking to support projects that align with their values and have a positive social or environmental impact. Another trend in the market is the emergence of digital securities offerings. Digital securities, also known as security tokens, are digital representations of traditional financial instruments such as stocks, bonds, and real estate. These offerings leverage blockchain technology to provide increased security, transparency, and efficiency compared to traditional securities. The adoption of digital securities in Georgia is driven by the desire to streamline capital raising processes, reduce costs, and attract a broader base of investors.

Local special circumstances: Georgia's favorable business environment and supportive regulatory framework have contributed to the development of the Digital Capital Raising market. The government has implemented various initiatives to promote entrepreneurship and innovation, including the establishment of technology parks and tax incentives for startups. Additionally, Georgia has a strong IT sector and a growing community of tech-savvy entrepreneurs, which has created a conducive environment for digital capital raising activities.

Underlying macroeconomic factors: The growth of the Digital Capital Raising market in Georgia is also influenced by underlying macroeconomic factors. The country has experienced stable economic growth in recent years, attracting both domestic and foreign investors. Furthermore, the government's commitment to economic reforms and integration with international markets has improved investor confidence and facilitated cross-border capital flows. These macroeconomic factors have created a favorable investment climate and contributed to the development of the Digital Capital Raising market in Georgia. In conclusion, the Digital Capital Raising market in Georgia is witnessing significant growth and development driven by customer preferences for convenience, efficiency, and access to a wider range of investment opportunities. The rise of crowdfunding platforms and digital securities offerings are key trends in the market, while Georgia's favorable business environment, supportive regulatory framework, and underlying macroeconomic factors have created a conducive environment for digital capital raising activities.

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.