Digital Capital Raising - Portugal

The country in Portugal is part of the Digital Capital Raising market market, where the total transaction value is expected to reach US$45.11m in 2024.
In this market, MarketMarketplace Lending (Consumer) leads with a projected total transaction value of US$31.51m in 2024.
When compared globally, the United States is seen to have the highest cumulated transaction value, reaching US$36bn in 2024.
Portugal's capital raising market is embracing digital platforms, streamlining processes, and attracting global investors for innovative projects.

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 Portugal has been experiencing significant growth in recent years, driven by various factors such as customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors. Customer preferences in Portugal have shifted towards digital capital raising methods due to their convenience and accessibility.

Investors are increasingly opting for online platforms and crowdfunding campaigns to raise capital, as these platforms provide a wider reach and enable them to connect with a larger pool of potential investors. The ease of use and transparency offered by these platforms have also contributed to their popularity among both investors and entrepreneurs. Trends in the market have also played a crucial role in the development of the Digital Capital Raising market in Portugal.

The rise of fintech companies and the increasing adoption of digital technologies have paved the way for innovative capital raising solutions. These include peer-to-peer lending platforms, equity crowdfunding, and initial coin offerings (ICOs). These trends have not only provided new avenues for entrepreneurs to raise capital but have also attracted a diverse range of investors, including retail investors who may have previously been excluded from traditional capital markets.

Local special circumstances have further fueled the growth of the Digital Capital Raising market in Portugal. The country has a vibrant startup ecosystem, with a number of innovative and high-growth potential companies emerging in recent years. These startups often face challenges in accessing traditional sources of funding, such as bank loans or venture capital.

As a result, they have turned to digital capital raising methods as a viable alternative to finance their growth and expansion plans. Underlying macroeconomic factors have also contributed to the development of the Digital Capital Raising market in Portugal. The country has experienced steady economic growth in recent years, creating a favorable environment for entrepreneurship and investment.

Additionally, the low interest rate environment and the availability of EU funding have provided further incentives for entrepreneurs and investors to explore digital capital raising options. Overall, the Digital Capital Raising market in Portugal is thriving due to customer preferences for digital solutions, emerging trends in the market, local special circumstances, and supportive macroeconomic factors. As the market continues to evolve, it is expected that more entrepreneurs and investors will embrace digital capital raising methods, further driving the growth and development of the 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.