Digital Capital Raising - Jordan | Statista Market Forecast

The country of Jordan is projected to reach a total transaction value of US$8.87m in the Digital Capital Raising market market by 2024.
MarketCrowdlending (Business) is set to dominate this market with a projected total transaction value of US$8.25m in 2024.
A global comparison reveals that the highest cumulated transaction value is expected to be reached the United States, amounting to US$36bn in 2024.
Jordan's Digital Capital Raising market is gaining traction, with more startups leveraging online platforms to attract investment and grow their businesses.

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 Jordan is experiencing significant growth and development.

Customer preferences: In Jordan, there is a growing preference for digital capital raising methods among businesses and entrepreneurs. This preference can be attributed to several factors. Firstly, digital capital raising allows for greater access to funding opportunities, as it eliminates geographical barriers and allows businesses to connect with potential investors from around the world. Additionally, digital platforms offer a more streamlined and efficient process for raising capital, reducing the time and effort required compared to traditional methods. Furthermore, the transparency and traceability of digital capital raising platforms provide businesses with increased credibility and trustworthiness, which is particularly important for attracting investors.

Trends in the market: One of the key trends in the digital capital raising market in Jordan is the emergence of crowdfunding platforms. These platforms allow businesses to raise capital from a large number of individual investors, often through small contributions. This trend is driven by the increasing popularity of crowdfunding as a means of supporting innovative and entrepreneurial ventures. In addition to crowdfunding, there is also a growing trend towards initial coin offerings (ICOs) in Jordan. ICOs involve the sale of digital tokens or coins to investors, providing them with a stake in a project or company. This trend is fueled by the rapid growth of blockchain technology and the potential for decentralized funding models.

Local special circumstances: Jordan has a vibrant startup ecosystem, with a number of successful tech companies and entrepreneurs emerging in recent years. This has created a favorable environment for digital capital raising, as investors are increasingly interested in supporting innovative and high-growth businesses. Additionally, the government of Jordan has implemented several initiatives to support entrepreneurship and innovation, including the establishment of specialized funds and the introduction of regulatory frameworks for crowdfunding and ICOs. These initiatives have helped to create a conducive environment for digital capital raising in the country.

Underlying macroeconomic factors: The development of the digital capital raising market in Jordan can be attributed to several macroeconomic factors. Firstly, the country has a young and tech-savvy population, which has embraced digital technologies and platforms. This has created a large pool of potential investors and entrepreneurs who are comfortable with digital capital raising methods. Additionally, Jordan has a strong financial services sector, with a well-developed banking system and a growing number of fintech startups. This provides a solid foundation for the growth of digital capital raising in the country. Furthermore, Jordan has a strategic location in the Middle East, making it an attractive market for investors and businesses looking to expand their presence in the region. Overall, these macroeconomic factors have contributed to the growth and development of the digital capital raising market in Jordan.

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.