Digital Capital Raising - Iraq | Statista Market Forecast

The country in focus, in Iraq, is expected to see the total transaction value in the Digital Capital Raising market market reach US$8.70k by 2024.
MarketReward-Based Crowdfunding is set to dominate the market with a projected total transaction value of US$8.70k in 2024.
A global comparison reveals that the United States leads in cumulated transaction value, reaching US$36bn in 2024.
Iraq's digital capital raising market is burgeoning, with a surge in blockchain-based fundraising platforms attracting local investors seeking innovative financing solutions.

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 Iraq is experiencing significant growth and development due to several key factors.

Customer preferences: In Iraq, there is a growing preference for digital capital raising methods over traditional methods. This shift is driven by the convenience and efficiency offered by digital platforms, which allow individuals and businesses to access capital quickly and easily. Additionally, the younger generation in Iraq, who are more tech-savvy and digitally connected, are increasingly embracing digital capital raising as a preferred method for funding their ventures.

Trends in the market: One of the key trends in the Digital Capital Raising market in Iraq is the rise of crowdfunding platforms. These platforms enable individuals and businesses to raise capital from a large number of people, often through small individual contributions. This trend is fueled by the increasing popularity of social media and online communities, which provide a platform for crowdfunding campaigns to reach a wide audience. Crowdfunding has become an attractive option for entrepreneurs and startups in Iraq, as it allows them to access capital without the need for traditional financial intermediaries. Another trend in the market is the emergence of digital lending platforms. These platforms connect borrowers with lenders, enabling individuals and businesses to secure loans quickly and efficiently. Digital lending platforms in Iraq have gained traction due to the ease of access and speed of loan approval, which is particularly beneficial for small and medium-sized enterprises (SMEs) that often face challenges in obtaining financing from traditional banks.

Local special circumstances: Iraq has a large population of young, tech-savvy individuals who are driving the demand for digital capital raising solutions. This demographic, coupled with the increasing internet penetration and smartphone adoption rates in the country, creates a favorable environment for the growth of the Digital Capital Raising market. Additionally, Iraq has a vibrant entrepreneurial ecosystem, with a growing number of startups and SMEs seeking capital to fund their growth and expansion plans. The availability of digital capital raising platforms enables these businesses to access the funding they need to thrive.

Underlying macroeconomic factors: The Digital Capital Raising market in Iraq is also influenced by underlying macroeconomic factors. The country has been experiencing economic growth in recent years, which has led to an increase in entrepreneurial activity and the demand for capital. Additionally, the government has been taking steps to promote digital innovation and entrepreneurship, including the establishment of incubators and accelerators, as well as the implementation of policies to support the growth of the digital economy. These factors contribute to the overall development of the Digital Capital Raising market in Iraq.

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.