Digital Capital Raising - Rwanda | Statista Market Forecast

The country in Rwanda is projected to reach a total transaction value of US$4.87k in the Digital Capital Raising market market by 2024.
In 2024, MarketCrowdinvesting is expected to dominate the market with a total transaction value of US$4.87k.
When compared globally, the United States leads with a cumulated transaction value of US$36bn in 2024.
In Rwanda, the Digital Capital Raising market is rapidly growing, attracting local startups and international investors seeking innovative financing solutions.

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 Rwanda is experiencing significant growth and development.

Customer preferences: In Rwanda, there is a growing preference among entrepreneurs and businesses to raise capital through digital platforms. This preference is driven by several factors. Firstly, digital capital raising offers convenience and accessibility, allowing entrepreneurs to connect with potential investors from anywhere in the world. Secondly, it provides a more efficient and streamlined process compared to traditional methods of capital raising, reducing the time and cost involved. Lastly, digital platforms often offer a wider pool of potential investors, increasing the chances of successful capital raising.

Trends in the market: One of the key trends in the digital capital raising market in Rwanda is the rise of crowdfunding platforms. These platforms allow entrepreneurs to raise capital from a large number of individuals, often in small amounts. This democratizes the capital raising process and provides an opportunity for individuals who may not have access to traditional financing options to invest in promising ventures. Crowdfunding platforms also allow entrepreneurs to validate their ideas and products before seeking larger investments. Another trend in the market is the emergence of digital investment platforms that connect entrepreneurs with angel investors and venture capitalists. These platforms provide a platform for entrepreneurs to showcase their business ideas and attract potential investors. They also offer a range of support services such as mentorship and networking opportunities, which can be invaluable for startups looking to grow and scale their businesses.

Local special circumstances: Rwanda has a vibrant entrepreneurial ecosystem, with a strong focus on innovation and technology. The government has implemented policies and initiatives to support the growth of the digital economy, including the establishment of technology hubs and incubators. This has created a favorable environment for digital capital raising, as entrepreneurs have access to resources and support to develop their ideas and businesses. Furthermore, Rwanda has a young and tech-savvy population, with a high level of internet penetration and smartphone usage. This provides a ready market for digital capital raising platforms, as both entrepreneurs and investors are comfortable using digital technologies for financial transactions.

Underlying macroeconomic factors: Rwanda has experienced steady economic growth in recent years, with a focus on diversifying the economy and attracting foreign investment. This has created opportunities for entrepreneurs to access capital and grow their businesses. The government has also implemented reforms to improve the ease of doing business, making it easier for entrepreneurs to start and operate businesses in the country. Additionally, Rwanda has a stable political environment and a strong commitment to promoting innovation and entrepreneurship. This creates a conducive environment for digital capital raising, as investors have confidence in the stability and growth potential of the country. In conclusion, the Digital Capital Raising market in Rwanda is developing rapidly due to customer preferences for convenience and efficiency, as well as the emergence of crowdfunding and digital investment platforms. The local special circumstances, including a supportive entrepreneurial ecosystem and a tech-savvy population, further contribute to the growth of the market. The underlying macroeconomic factors, such as steady economic growth and a stable political environment, provide a solid foundation for the development of the digital capital raising market in Rwanda.

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.