Digital Capital Raising - Hong Kong

Hong Kong

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The country of Hong Kong is projected to reach a total transaction value of US$46.88m in the Digital Capital Raising market market by 2025.
In the same year, MarketReward-Based Crowdfunding is expected to dominate the market with a projected total transaction value of US$28.57m.
When comparing globally, the United States leads with the highest cumulated transaction value of US$37bn in 2025.
In Hong Kong, the trend of utilizing blockchain technology for digital capital raising is gaining traction in the capital raising market.

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Brazil,
Germany,
United States,
United Kingdom,
China

Capital Raised

Transaction Value Change by Segment

NOTES: Data was converted from local currencies using average exchange rates of the respective year.

MOST_RECENT_UPDATE: Mar 2024

SOURCE: Statista Market Insights

Transaction Value by Segment

Transaction Value Change by Segment

NOTES: Data was converted from local currencies using average exchange rates of the respective year.

MOST_RECENT_UPDATE: Oct 2024

SOURCE: Statista Market Insights

Analyst Opinion

The Digital Capital Raising Market in Hong Kong is witnessing mild growth, influenced by factors such as evolving investor preferences, a surge in fintech innovations, and increasing regulatory support, which enhance access to diverse funding options for businesses and consumers alike.

Customer preferences: Investors in Hong Kong are increasingly gravitating towards digital platforms for capital raising, driven by a growing preference for transparency and real-time data accessibility. This trend is particularly prominent among younger, tech-savvy demographics who prioritize innovation and sustainability in their investment choices. Additionally, the rise of social media and online communities has fostered a collaborative investment culture, encouraging peer-to-peer funding models and democratizing access to capital for startups and emerging enterprises.

Trends in the market: In Hong Kong, the Digital Capital Raising Market is experiencing a surge in the adoption of crowdfunding platforms, enabling startups to secure funding directly from investors. Simultaneously, blockchain technology is being leveraged to enhance transparency and security in fundraising processes. Furthermore, regulatory bodies are beginning to embrace digital assets, paving the way for tokenized offerings. This convergence of technology and finance not only empowers entrepreneurs but also attracts a diverse investor base, fostering innovation and reshaping traditional investment paradigms. The implications for industry stakeholders include the need for adaptive strategies and compliance measures to navigate this evolving landscape.

Local special circumstances: In Hong Kong, the Digital Capital Raising Market is uniquely influenced by its status as a global financial hub and its proximity to mainland China, which attracts international investors. The city's robust legal framework and strong protection of intellectual property rights foster a conducive environment for startups. Additionally, cultural openness to innovation and technology encourages entrepreneurial ventures. Regulatory bodies are actively adapting to digital trends, promoting a supportive atmosphere for crowdfunding and tokenization, which differentiates Hong Kong from other markets by blending tradition with cutting-edge finance.

Underlying macroeconomic factors: The Digital Capital Raising Market in Hong Kong is shaped by several macroeconomic factors, including global economic trends, national economic stability, and fiscal policies. The city's robust financial infrastructure and favorable tax regime attract foreign investments, enhancing market liquidity. Furthermore, the ongoing digital transformation worldwide, coupled with the rise of fintech, positions Hong Kong as a leader in innovative fundraising methods. The government's proactive stance on regulatory frameworks supports venture capital and crowdfunding initiatives, fostering a vibrant startup ecosystem. Additionally, the integration of mainland China's economic growth amplifies opportunities, drawing international interest and driving competitive market dynamics.

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.

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Crowdfunding - statistics & facts

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.

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