Digital Capital Raising - Switzerland

The Digital Capital Raising market market in Switzerland is projected to reach a total transaction value of US$142.70m in 2024.
MarketMarketplace Lending (Consumer) is set to dominate the market with a projected total transaction value of US$102.90m in 2024.
When compared globally, the United States is expected to reach the highest cumulated transaction value of US$36bn in 2024.
Switzerland is experiencing a surge in digital capital raising activities, with blockchain technology driving innovation in the country's capital raising market.

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 Switzerland has been experiencing significant growth in recent years.

Customer preferences: Swiss investors have shown a strong interest in digital capital raising platforms due to their convenience and accessibility. These platforms allow investors to easily access a wide range of investment opportunities, including startups and real estate projects, without the need for traditional intermediaries. Swiss investors, known for their risk-averse nature, appreciate the transparency and control offered by these platforms, as they can easily track their investments and make informed decisions.

Trends in the market: One of the key trends in the Swiss Digital Capital Raising market is the increasing popularity of equity crowdfunding. This form of fundraising allows startups and small businesses to raise capital from a large number of investors, who in turn receive equity in the company. Equity crowdfunding has gained traction in Switzerland due to its potential for high returns and the opportunity to support local businesses. Additionally, the Swiss government has introduced regulations to facilitate equity crowdfunding, further boosting its growth in the market. Another trend in the market is the emergence of tokenization. Tokenization involves converting real-world assets, such as real estate or artwork, into digital tokens that can be traded on blockchain platforms. Swiss investors are attracted to tokenization as it provides them with the opportunity to invest in traditionally illiquid assets and diversify their portfolios. The Swiss government has been supportive of tokenization initiatives, creating a favorable regulatory environment for such projects.

Local special circumstances: Switzerland has a strong reputation as a global financial hub, with a well-established banking sector and a history of financial innovation. This has created a conducive environment for the growth of the Digital Capital Raising market. The country's stable political and economic climate, as well as its strong investor protection laws, have also contributed to the market's development. Furthermore, Switzerland is home to a vibrant startup ecosystem, particularly in sectors such as fintech, biotech, and blockchain. The presence of innovative startups has attracted both domestic and international investors, driving the demand for digital capital raising platforms.

Underlying macroeconomic factors: Switzerland's strong economy and high per capita income levels have provided individuals with disposable income to invest. Additionally, the low interest rate environment in the country has made traditional investment options, such as savings accounts and bonds, less attractive. As a result, investors are seeking alternative investment opportunities, leading to the growth of the Digital Capital Raising market. Moreover, Switzerland's position as a global wealth management center has facilitated the flow of capital into the Digital Capital Raising market. High-net-worth individuals and institutional investors are increasingly allocating funds to digital capital raising platforms as part of their investment strategies. In conclusion, the Digital Capital Raising market in Switzerland is experiencing growth due to customer preferences for convenience and transparency, as well as favorable local circumstances such as a strong financial sector and supportive regulations. The market is driven by trends such as equity crowdfunding and tokenization, which cater to the preferences of Swiss investors. Underlying macroeconomic factors, such as the country's strong economy and low interest rates, have also contributed to the market's development.

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.