Digital Capital Raising - Mexico | Statista Market Forecast

The Digital Capital Raising market market in Mexico is expected to see a total transaction value of US$41.96m by 2024.
In this market, MarketMarketplace Lending (Consumer) is set to lead with a projected total transaction value of US$36.39m in 2024.
A global comparison reveals that the United States tops the chart with the highest cumulated transaction value, expected to reach US$36bn by 2024.
In Mexico, the trend of utilizing digital platforms for capital raising is gaining traction, revolutionizing the traditional methods in the capital raising market.

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 Mexico has been experiencing significant growth in recent years.

Customer preferences: Mexican businesses and entrepreneurs are increasingly turning to digital platforms to raise capital. This shift is driven by several factors. Firstly, digital capital raising offers convenience and accessibility, allowing companies to reach a wider pool of potential investors. Secondly, it provides a more efficient and streamlined process compared to traditional methods of fundraising. Lastly, digital platforms often offer a range of financing options, catering to the diverse needs of businesses at different stages of growth.

Trends in the market: One of the key trends in the Mexican Digital Capital Raising market is the rise of crowdfunding platforms. These platforms enable individuals to invest in startups and small businesses, providing them with an opportunity to diversify their investment portfolios. Crowdfunding has gained popularity in Mexico due to its potential for high returns and the ability to support local businesses. Additionally, the emergence of blockchain technology has also impacted the market, with the introduction of Initial Coin Offerings (ICOs) as a new form of fundraising. ICOs allow companies to raise funds by issuing digital tokens, which can then be traded on cryptocurrency exchanges.

Local special circumstances: Mexico has a vibrant startup ecosystem, with a growing number of innovative companies seeking funding. This has created a favorable environment for digital capital raising platforms to thrive. Additionally, the Mexican government has implemented policies to support entrepreneurship and innovation, providing incentives for startups and investors. These initiatives have further fueled the growth of the Digital Capital Raising market in the country.

Underlying macroeconomic factors: Several macroeconomic factors have contributed to the development of the Digital Capital Raising market in Mexico. Firstly, the country has a large and young population, which provides a strong consumer base and a pool of potential investors. Secondly, Mexico has seen an increase in internet penetration and smartphone usage, making digital platforms more accessible to the population. Lastly, the Mexican economy has been experiencing steady economic growth, creating a favorable investment climate and increasing investor confidence. In conclusion, the Digital Capital Raising market in Mexico is experiencing significant growth due to customer preferences for convenience and efficiency, the rise of crowdfunding platforms, the adoption of blockchain technology, the presence of a vibrant startup ecosystem, and favorable macroeconomic factors. This trend is expected to continue in the coming years, as more businesses and entrepreneurs recognize the benefits of digital capital raising and investors seek opportunities in the Mexican 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.