Digital Capital Raising - Malta | Statista Market Forecast

The country in Malta is part of the total transaction value in the Digital Capital Raising market market, which is projected to reach US$120.10k in 2024.
MarketReward-Based Crowdfunding leads the market with a projected total transaction value of US$120.10k in 2024.
When compared globally, the United States reaches the highest cumulated transaction value of US$36bn in 2024.
Malta is embracing digital platforms for capital raising, revolutionizing the traditional market landscape with innovative fundraising opportunities.

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 Malta has been steadily growing in recent years, driven by customer preferences for alternative funding options and the local special circumstances that make Malta an attractive destination for digital capital raising.

Customer preferences: Maltese entrepreneurs and businesses are increasingly turning to digital capital raising platforms as a way to access funding. This is due to several factors, including the ease and convenience of online fundraising, the ability to reach a wider pool of potential investors, and the potential for faster funding compared to traditional methods. Additionally, the rise of crowdfunding platforms has opened up new opportunities for individuals to invest in startups and innovative projects, further fueling the growth of the digital capital raising market in Malta.

Trends in the market: One of the key trends in the digital capital raising market in Malta is the growth of Initial Coin Offerings (ICOs). ICOs have gained popularity as a way for startups to raise funds by issuing digital tokens or cryptocurrencies. Malta has positioned itself as a leading jurisdiction for ICOs, with the government introducing a regulatory framework to attract blockchain and cryptocurrency companies. This has led to an influx of blockchain startups and ICO projects in Malta, contributing to the growth of the digital capital raising market. Another trend in the market is the emergence of peer-to-peer lending platforms. These platforms connect borrowers directly with lenders, bypassing traditional financial institutions. Peer-to-peer lending has gained traction in Malta as an alternative to traditional bank loans, particularly for small and medium-sized enterprises (SMEs) that may have difficulty accessing financing through traditional channels. The convenience and flexibility of peer-to-peer lending platforms have made them an attractive option for both borrowers and lenders.

Local special circumstances: Malta's strategic location in the Mediterranean, its membership in the European Union, and its favorable business environment make it an attractive destination for digital capital raising. The Maltese government has been proactive in creating a supportive regulatory framework for blockchain and cryptocurrency companies, positioning Malta as a hub for digital innovation. This has attracted international investors and startups to the country, further driving the growth of the digital capital raising market.

Underlying macroeconomic factors: The growth of the digital capital raising market in Malta is also influenced by underlying macroeconomic factors. Malta has experienced strong economic growth in recent years, with a focus on sectors such as financial services, gaming, and technology. This has created a favorable business environment for startups and entrepreneurs, driving demand for digital capital raising. Additionally, Malta's small size and close-knit business community make it easier for entrepreneurs to network and access potential investors, further supporting the growth of the digital capital raising market.

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.