Digital Capital Raising - Singapore

The country in Singapore is projected to see a total transaction value of US$282.60m in the Digital Capital Raising market market by 2024.
MarketCrowdinvesting is set to dominate the market with a projected total transaction value of US$273.40m in 2024.
When compared globally, the United States leads with the highest cumulated transaction value of US$36bn in 2024.
Singapore's burgeoning FinTech ecosystem is driving a surge in digital capital raising activities, positioning the country as a leading hub for innovative fundraising 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

Singapore has emerged as a leading hub for digital capital raising, attracting both domestic and international investors. This trend can be attributed to several factors, including customer preferences, market trends, local special circumstances, and underlying macroeconomic factors.

Customer preferences in Singapore have shifted towards digital capital raising due to its convenience and accessibility. Investors are increasingly looking for alternative investment options that offer higher returns and greater flexibility. Digital capital raising platforms provide a wide range of investment opportunities, allowing investors to diversify their portfolios and access previously inaccessible markets.

Additionally, these platforms offer a seamless and user-friendly experience, making it easier for investors to navigate the investment process. Trends in the digital capital raising market in Singapore are driven by both global and regional factors. The rise of fintech has revolutionized the financial industry, enabling digital platforms to disrupt traditional capital raising channels.

This trend is further accelerated by the increasing adoption of digital technologies in Singapore, which has created a conducive environment for digital capital raising platforms to thrive. Furthermore, the growing interest in sustainable and impact investing has fueled the demand for digital capital raising platforms that focus on environmental, social, and governance (ESG) factors. Local special circumstances also contribute to the development of the digital capital raising market in Singapore.

The city-state's strong regulatory framework and reputation for financial stability have attracted a large number of international investors. Singapore's government has been proactive in promoting innovation and entrepreneurship, providing support and incentives for fintech companies to establish their presence in the country. Additionally, the presence of a well-developed financial ecosystem, including venture capital firms, accelerators, and incubators, has created a vibrant startup ecosystem that is conducive to digital capital raising.

Underlying macroeconomic factors play a crucial role in the development of the digital capital raising market in Singapore. The city-state's robust economy, strategic location, and strong connectivity make it an attractive destination for investors. Singapore's position as a financial hub in Asia provides access to a wide range of investors, including institutional investors and high-net-worth individuals.

Furthermore, the government's commitment to promoting innovation and digitalization in various sectors, such as finance, technology, and healthcare, has created a favorable environment for digital capital raising. In conclusion, the digital capital raising market in Singapore is experiencing significant growth due to customer preferences, market trends, local special circumstances, and underlying macroeconomic factors. The shift towards digital capital raising is driven by the convenience and accessibility it offers to investors.

The rise of fintech and the increasing interest in sustainable investing are also contributing to the growth of the market. Singapore's strong regulatory framework, government support, and well-developed financial ecosystem further enhance its position as a leading hub for digital capital raising.

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.