Market Insights Financial Capital Raising

Digital Capital Raising - Guatemala

Guatemala

The country of Guatemala is projected to reach a total transaction value of US$240.50k in the Digital Capital Raising market market by 2024.
MarketMarketplace Lending (Consumer) is expected to dominate the market with a projected total transaction value of US$180.30k in 2024.
When looking at a global comparison, it is evident that the United States leads with the highest cumulated transaction value of US$36,370m in 2024.
Guatemala is embracing digital platforms for capital raising, revolutionizing the market with efficient and innovative fundraising methods.

Key regions: Brazil, Germany, United States, United Kingdom, China

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Analyst Opinion

The Digital Capital Raising market in Guatemala is experiencing significant growth and development.

Customer preferences: Guatemalan entrepreneurs and businesses are increasingly turning to digital capital raising platforms to fund their ventures. This shift is driven by several factors, including the convenience and accessibility of online fundraising platforms, as well as the potential for reaching a larger pool of potential investors. Additionally, the younger generation of entrepreneurs in Guatemala are more tech-savvy and comfortable with digital platforms, making online capital raising a natural choice for them.

Trends in the market: One of the key trends in the digital capital raising market in Guatemala is the rise of crowdfunding platforms. These platforms allow entrepreneurs to raise funds from a large number of individual investors, often in exchange for equity or rewards. Crowdfunding has gained popularity in Guatemala due to its ability to democratize access to capital, allowing entrepreneurs to bypass traditional financial institutions and connect directly with potential investors. This trend is expected to continue as more entrepreneurs recognize the benefits of crowdfunding and as the regulatory environment becomes more supportive. Another trend in the market is the increasing use of digital securities offerings. Digital securities, also known as security tokens, are digital representations of ownership in an asset or company. They can be bought, sold, and traded on digital platforms, providing investors with increased liquidity and flexibility. In Guatemala, the adoption of digital securities offerings is still in its early stages, but it is expected to grow as more entrepreneurs and investors become familiar with the concept and as regulatory frameworks are put in place to govern these transactions.

Local special circumstances: Guatemala has a vibrant startup ecosystem, with a growing number of innovative companies and entrepreneurs. However, access to traditional sources of capital, such as banks and venture capital firms, can be challenging for early-stage startups. This has created a need for alternative funding options, such as digital capital raising platforms. Additionally, the COVID-19 pandemic has further highlighted the importance of digital channels for fundraising, as physical interactions and traditional fundraising events have been limited.

Underlying macroeconomic factors: Guatemala has a relatively stable economy, with steady GDP growth and low inflation. However, access to finance remains a challenge for many entrepreneurs, particularly those in underserved regions or sectors. The government has recognized the importance of entrepreneurship and innovation for economic growth and has taken steps to support the development of the startup ecosystem. These efforts include the establishment of incubators and accelerators, as well as the implementation of policies to promote entrepreneurship and innovation. These macroeconomic factors, combined with the increasing adoption of digital technologies, create a favorable environment for the growth of the digital capital raising market in Guatemala.

Methodology

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. The scenario analysis is based on a Monte Carlo simulation approach generating a range of possible outcomes by creating random variations in forecasted data points, based on assumptions about potential fluctuations in future values. By running numerous simulated scenarios, the model provides an estimated distribution of results, allowing for an analysis of likely ranges and confidence intervals around the forecast.

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.