Key regions: Brazil, Germany, United States, United Kingdom, China
The Digital Capital Raising market in New Zealand is experiencing significant growth and development.
Customer preferences: New Zealanders are increasingly embracing digital capital raising as a means to access investment opportunities and support local businesses. This shift in customer preferences can be attributed to several factors. Firstly, the convenience and accessibility of digital platforms make it easier for individuals to invest and raise capital from the comfort of their own homes. Secondly, the transparent nature of digital capital raising platforms provides investors with greater visibility into the businesses they are supporting, which in turn builds trust and confidence. Finally, the rise of crowdfunding and peer-to-peer lending platforms has democratized capital raising, allowing individuals to support projects and businesses that align with their personal values and interests.
Trends in the market: One notable trend in the New Zealand digital capital raising market is the increasing popularity of equity crowdfunding. This form of capital raising allows businesses to sell shares to a large number of investors, thereby spreading the risk and potentially attracting a wider pool of capital. Equity crowdfunding platforms have gained traction in New Zealand due to regulatory changes that have made it easier for businesses to raise funds from retail investors. This trend is expected to continue as more businesses recognize the benefits of equity crowdfunding and more investors seek opportunities to support local ventures. Another trend in the market is the emergence of digital lending platforms. These platforms connect borrowers with lenders, providing an alternative to traditional banking channels. Digital lending platforms offer borrowers greater flexibility and convenience, as well as potentially lower interest rates. For lenders, these platforms offer the opportunity to earn higher returns compared to traditional savings accounts. The growth of digital lending platforms in New Zealand can be attributed to the increasing demand for credit among individuals and small businesses, as well as the desire for a streamlined borrowing process.
Local special circumstances: New Zealand's relatively small population and geographic isolation present unique challenges and opportunities for the digital capital raising market. On one hand, the small size of the market means that there is limited competition among digital capital raising platforms, allowing early movers to establish a strong presence. On the other hand, the small population size also means that there is a limited pool of potential investors and borrowers, which may restrict the growth of the market. Additionally, New Zealand's geographic isolation can make it more difficult for digital capital raising platforms to attract international investors and expand their reach beyond the domestic market.
Underlying macroeconomic factors: The development of the digital capital raising market in New Zealand is also influenced by underlying macroeconomic factors. The country's stable economy and business-friendly regulatory environment provide a favorable backdrop for digital capital raising. Additionally, New Zealand's strong entrepreneurial culture and innovative spirit contribute to the growth of the market, as individuals and businesses seek new ways to access capital and support their ventures. The government's ongoing efforts to promote entrepreneurship and innovation further support the development of the digital capital raising market in New Zealand.
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. The scenario analysis is based on a Monte Carlo simulation approach generating a range of possible outcomes by creating random variations in forecasted data points, based on assumptions about potential fluctuations in future values. By running numerous simulated scenarios, the model provides an estimated distribution of results, allowing for an analysis of likely ranges and confidence intervals around the forecast.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.
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