Digital Capital Raising - Zimbabwe

Zimbabwe is expected to witness a total transaction value of US$985.30k in the Digital Capital Raising market market by 2024.
In the same year, MarketCrowdinvesting is anticipated to lead the market with a total transaction value projected to be US$830.50k.
When compared globally, the United States is set to achieve the highest cumulated transaction value of US$36bn by 2024.
Zimbabwe's digital capital raising market is evolving rapidly, with a surge in blockchain-based fundraising platforms offering innovative investment opportunities.

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 Zimbabwe is experiencing significant growth and development.

Customer preferences: In Zimbabwe, there is a growing preference for digital capital raising methods due to their convenience and accessibility. Entrepreneurs and businesses are increasingly turning to online platforms to raise funds for their ventures. This shift in customer preferences can be attributed to the ease of use and the ability to reach a larger pool of potential investors.

Trends in the market: One of the key trends in the digital capital raising market in Zimbabwe is the rise of crowdfunding platforms. These platforms provide a space for entrepreneurs to showcase their ideas and attract funding from a diverse range of investors. Crowdfunding has gained popularity due to its ability to democratize the investment process, allowing individuals from all walks of life to participate in funding new ventures. Another trend in the market is the emergence of peer-to-peer lending platforms. These platforms connect borrowers directly with lenders, bypassing traditional financial institutions. This trend has gained traction in Zimbabwe due to the limited access to credit from traditional banks, making peer-to-peer lending an attractive alternative for entrepreneurs and small businesses.

Local special circumstances: Zimbabwe's digital capital raising market is also influenced by the local economic and regulatory environment. The country has faced significant economic challenges in recent years, including hyperinflation and currency instability. This has led to a lack of trust in traditional financial institutions and a desire for alternative funding sources. The digital capital raising market provides an avenue for entrepreneurs to access funding without relying on the traditional banking system.

Underlying macroeconomic factors: The development of the digital capital raising market in Zimbabwe can also be attributed to underlying macroeconomic factors. The country has a young and tech-savvy population, which has embraced digital technologies and online platforms. This has created a fertile ground for the growth of the digital capital raising market. Furthermore, Zimbabwe has seen an increase in mobile and internet penetration rates in recent years. This has expanded the reach of digital capital raising platforms, allowing entrepreneurs to connect with a larger pool of potential investors. The increasing use of mobile money services has also facilitated the growth of the digital capital raising market, as it provides a convenient and secure way to transact online. In conclusion, the Digital Capital Raising market in Zimbabwe is experiencing significant growth and development. This can be attributed to customer preferences for convenience and accessibility, as well as the emergence of crowdfunding and peer-to-peer lending platforms. The local economic and regulatory environment, as well as underlying macroeconomic factors such as a young and tech-savvy population and increasing internet penetration, have also contributed 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.