Digital Capital Raising - South America

  • South America
  • The Digital Capital Raising market market in South America is projected to reach a total transaction value of US$298.3m in 2024.
  • MarketMarketplace Lending (Consumer) leads the market with a projected total transaction value of US$249.1m in 2024.
  • In a global comparison, the United States is expected to reach the highest cumulated transaction value of US$35,370m in 2024.
  • In South America, Brazil is leading the way in utilizing digital platforms for capital raising, revolutionizing the region's investment landscape.

Key regions: Israel, Germany, Singapore, United States, United Kingdom

 
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Analyst Opinion

The Digital Capital Raising market in South America is experiencing significant growth and development.

Customer preferences:
Investors in South America are increasingly turning to digital platforms for capital raising due to the convenience and accessibility they offer. These platforms allow investors to easily browse through investment opportunities and make informed decisions. Additionally, digital capital raising platforms provide a wide range of investment options, catering to different risk appetites and investment goals.

Trends in the market:
One of the key trends in the South American Digital Capital Raising market is the rise of crowdfunding platforms. These platforms enable entrepreneurs and small businesses to raise capital from a large number of individual investors, who contribute smaller amounts of money. This democratization of capital raising has opened up new opportunities for entrepreneurs who may have struggled to secure funding through traditional channels. Furthermore, crowdfunding platforms often provide additional benefits such as marketing exposure and access to a network of potential customers and supporters. Another trend in the market is the increasing popularity of peer-to-peer lending platforms. These platforms connect borrowers directly with lenders, cutting out traditional financial intermediaries. This allows borrowers to access capital at competitive interest rates, while lenders can earn attractive returns on their investments. Peer-to-peer lending platforms have gained traction in South America due to the region's large unbanked population and limited access to traditional banking services.

Local special circumstances:
South America is a region with a high level of economic inequality, and digital capital raising platforms are helping to address this issue. By providing access to capital for entrepreneurs and small businesses, these platforms are promoting economic inclusion and empowering individuals to pursue their entrepreneurial ambitions. Additionally, digital capital raising platforms are often more transparent and efficient than traditional channels, reducing the barriers to entry for entrepreneurs.

Underlying macroeconomic factors:
Several macroeconomic factors are driving the growth of the Digital Capital Raising market in South America. Firstly, the region has a young and tech-savvy population that is increasingly comfortable with using digital platforms for financial transactions. This demographic shift is creating a large pool of potential investors and borrowers for digital capital raising platforms. Secondly, South America has a growing middle class that is seeking investment opportunities to grow their wealth. Digital capital raising platforms provide an accessible and affordable way for this segment of the population to invest in a diverse range of assets, including stocks, bonds, and real estate. Lastly, the region's traditional banking sector is relatively underdeveloped, with limited access to credit for small businesses and individuals. Digital capital raising platforms are filling this gap by providing alternative sources of financing. This is particularly important in South America where entrepreneurship is on the rise and small and medium-sized enterprises play a crucial role in driving economic growth. In conclusion, the Digital Capital Raising market in South America is experiencing rapid growth and development. Customer preferences for convenience and accessibility, along with the rise of crowdfunding and peer-to-peer lending platforms, are driving this trend. Additionally, local special circumstances such as economic inequality and limited access to traditional banking services are further fueling the growth of digital capital raising platforms. These trends are supported by underlying macroeconomic factors such as a young and tech-savvy population and a growing middle class. Overall, the Digital Capital Raising market in South America is poised for continued expansion in the coming years.

Methodology

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.

Overview

  • Capital Raised
  • Average Deal Size
  • Global Comparison
  • Number of Deals
  • Analyst Opinion
  • Methodology
  • Key Market Indicators
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