Digital Capital Raising - Senegal

Senegal's total transaction value in the Digital Capital Raising market market is expected to reach US$16.29k in 2024.
MarketReward-Based Crowdfunding leads the market with a projected total transaction value of US$16.29k in 2024.
In a global comparison, the United States achieves the highest cumulated transaction value (US$36bn in 2024).
Senegal is embracing digital platforms for capital raising, revolutionizing the country's investment landscape with increased accessibility and efficiency.

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 Senegal is experiencing steady growth and development, driven by various factors such as customer preferences, market trends, local special circumstances, and underlying macroeconomic factors. Customer preferences in Senegal are shifting towards digital capital raising methods due to their convenience and efficiency.

Investors are increasingly opting for online platforms to raise capital, as it allows them to reach a wider pool of potential investors and streamline the fundraising process. Additionally, digital capital raising platforms provide investors with greater transparency and access to real-time market data, enabling them to make more informed investment decisions. Trends in the market indicate a growing demand for digital capital raising solutions in Senegal.

The emergence of fintech companies and crowdfunding platforms has democratized access to capital, enabling small and medium-sized enterprises (SMEs) to raise funds more easily. This trend is particularly beneficial for entrepreneurs and startups, who traditionally faced challenges in securing funding from traditional financial institutions. The rise of mobile banking and digital payment solutions has also contributed to the growth of the digital capital raising market, as it facilitates seamless transactions and reduces the reliance on cash-based transactions.

Local special circumstances in Senegal, such as a large informal economy and limited access to traditional banking services, have further fueled the development of the digital capital raising market. Many individuals and businesses in Senegal operate in the informal sector, which makes it difficult for them to access formal financial services. Digital capital raising platforms provide an alternative avenue for these individuals and businesses to access funding and grow their ventures.

Additionally, the limited presence of traditional banks in rural areas has created an opportunity for digital capital raising platforms to fill the gap and provide financial services to underserved communities. Underlying macroeconomic factors, such as a growing middle class, increasing internet penetration, and favorable government policies, have also contributed to the growth of the digital capital raising market in Senegal. The expanding middle class has led to a greater demand for investment opportunities, driving the need for digital capital raising platforms.

The increasing internet penetration rate in Senegal has made it easier for individuals and businesses to access online platforms and participate in digital capital raising activities. Furthermore, the Senegalese government has implemented policies to promote entrepreneurship and innovation, creating a conducive environment for the growth of the digital capital raising market. In conclusion, the Digital Capital Raising market in Senegal is experiencing growth and development due to customer preferences, market trends, local special circumstances, and underlying macroeconomic factors.

The shift towards digital capital raising methods, the emergence of fintech companies and crowdfunding platforms, local special circumstances such as the informal economy and limited access to traditional banking services, and underlying macroeconomic factors such as a growing middle class and increasing internet penetration are all contributing to the growth 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.