Digital Capital Raising - Thailand

The country in Thailand is projected to reach a total transaction value of US$23.26m in the Digital Capital Raising market market by 2024.
MarketCrowdlending (Business) is expected to dominate the market with a projected total transaction value of US$10.06m in 2024.
A global comparison reveals that the highest cumulated transaction value is anticipated the United States (US$36bn in 2024).
Thailand's Digital Capital Raising market is experiencing a surge in blockchain-based fundraising platforms, revolutionizing traditional capital raising methods.

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 Thailand has been experiencing significant growth in recent years, driven by changing customer preferences, market trends, and local special circumstances.

Customer preferences: Thai customers have shown a growing interest in digital capital raising platforms due to their convenience and accessibility. With the rise of internet penetration and smartphone usage in Thailand, individuals and businesses are increasingly turning to online platforms to raise capital. These platforms offer a seamless and user-friendly experience, allowing customers to easily access and invest in a wide range of investment opportunities.

Trends in the market: One of the key trends in the digital capital raising market in Thailand is the emergence of crowdfunding platforms. These platforms enable individuals and businesses to raise capital from a large number of investors, often through small contributions. This democratization of capital raising has opened up new opportunities for entrepreneurs and startups, who can now access funding more easily than through traditional channels. Another trend in the market is the growing popularity of peer-to-peer lending platforms. These platforms connect borrowers directly with lenders, bypassing traditional financial intermediaries such as banks. This has provided an alternative source of financing for individuals and small businesses who may have difficulty accessing traditional loans.

Local special circumstances: Thailand has a vibrant startup ecosystem, with a growing number of innovative companies looking for funding. The government has also been actively supporting the development of the digital economy, including initiatives to promote digital entrepreneurship and innovation. These factors have created a favorable environment for the growth of the digital capital raising market in Thailand.

Underlying macroeconomic factors: Thailand's strong economic growth and stable political environment have contributed to the growth of the digital capital raising market. The country has a large and growing middle class, with increasing disposable income and a desire to invest in alternative asset classes. Additionally, low interest rates in Thailand have made traditional savings and investment options less attractive, leading individuals to seek higher returns through digital capital raising platforms. In conclusion, the digital capital raising market in Thailand is experiencing significant growth due to changing customer preferences, market trends, local special circumstances, and underlying macroeconomic factors. As more individuals and businesses in Thailand embrace digital platforms for capital raising, the market is expected to continue to expand in the coming years.

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.