Digital Capital Raising - Netherlands

The country in the Netherlands is expected to see the total transaction value in the Digital Capital Raising market market reach US$279.80m by 2024.
MarketCrowdlending (Business) leads the market with a projected total transaction value of US$203.50m in 2024.
When compared globally, it is evident that the United States achieves the highest cumulated transaction value, reaching US$36bn in 2024.
Netherlands is experiencing a surge in digital capital raising platforms, revolutionizing the capital raising landscape in the country.

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 Netherlands is experiencing significant growth and development.

Customer preferences: In recent years, there has been a shift in customer preferences towards digital capital raising methods in the Netherlands. This can be attributed to several factors. Firstly, the convenience and accessibility of digital platforms have made it easier for individuals and businesses to raise capital. With just a few clicks, they can connect with potential investors and showcase their projects or business ideas. Secondly, digital capital raising offers a wider reach, allowing entrepreneurs to tap into a larger pool of potential investors both domestically and internationally. This has opened up new opportunities for startups and small businesses to secure funding that may not have been possible through traditional channels. Lastly, the transparency and efficiency of digital platforms have instilled a sense of trust among investors, making them more willing to participate in digital capital raising campaigns.

Trends in the market: One of the key trends in the digital capital raising market in the Netherlands is the rise of crowdfunding platforms. These platforms have gained popularity among both entrepreneurs and investors due to their ability to connect individuals directly, cutting out intermediaries and reducing costs. Crowdfunding has also become a popular way for individuals to invest in projects they believe in, allowing them to support causes or ideas they are passionate about. Another trend in the market is the emergence of digital securities offerings. These offerings allow companies to issue tokens or digital assets that represent ownership or shares in the company. This innovative approach to capital raising has gained traction in the Netherlands, as it provides a more efficient and cost-effective way for companies to raise funds.

Local special circumstances: The Netherlands has a strong entrepreneurial culture and a supportive ecosystem for startups and small businesses. This has created a fertile ground for the development of the digital capital raising market. The country is home to numerous incubators, accelerators, and venture capital firms that actively support and invest in innovative projects. Additionally, the Dutch government has implemented various initiatives to promote entrepreneurship and innovation, such as tax incentives and grants. These factors have contributed to the growth of the digital capital raising market in the Netherlands.

Underlying macroeconomic factors: The Netherlands has a stable and prosperous economy, which provides a favorable environment for digital capital raising. The country has a high level of internet penetration and a tech-savvy population, making it well-suited for digital platforms. Furthermore, the Netherlands has a strong financial sector and a well-regulated capital market, which instills confidence in investors. The country's strategic location within Europe also makes it an attractive destination for international investors. These macroeconomic factors have played a significant role in driving the growth of the digital capital raising market in the Netherlands.

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.