Capital Raising - EAEU | Statista Market Forecast

The total capital raised in the Capital Raising market market in EAEU is expected to reach US$1.11bn in 2024.
Traditional Capital Raising leads the market with a projected market volume of US$830.60m in 2024.
When compared globally, the United States is set to generate the most capital raised (US$195.4bn in 2024).
EAEU's Capital Raising market sees a growing trend in leveraging blockchain technology for more efficient and secure fundraising processes.

Definition:

The Capital Raising market refers to the process of raising additional capital to launch, finance, and grow a business or a project. Traditional Bank Loans are not considered in the market.

Structure:

The market consists of two segments:
- The Traditional Capital Raising market refers to traditional venture financial services for startups and emerging companies that do not yet possess a positive track record, but have exceptional growth potential.
- The Digital Capital Raising market refers to digital financial services for business customers and private borrowers.
The market data comprises of the amount of capital raised, number of deals, and average deal size.

Additional information:

Besides Traditional Bank Loans, there are various alternative forms of debt and equity financing that help businesses, especially startups and emerging companies who seek additional funds to support their business' operation and growth. Nowadays, owing to the rapid growth rate of startups and emerging companies, these financial services are more attractive and popular.
Key players in this market are companies such as Squoia Capital, Hercules Capital, and Indiegogo

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Venture Capital
Venture Debt
Digital Capital Raising

Traditional Bank Loans

The Capital Raising market in EAEU has been experiencing significant growth in recent years, driven by customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors. Customer preferences in the EAEU region have shifted towards alternative financing options, such as equity crowdfunding and peer-to-peer lending.

This is partly due to the increasing popularity of technology platforms that connect investors with businesses seeking capital. These platforms provide a convenient and accessible way for individuals to invest in promising startups and small businesses, bypassing traditional financial intermediaries. Additionally, customers are increasingly seeking investment opportunities that align with their values, such as socially responsible or sustainable businesses.

Trends in the Capital Raising market in the EAEU region have also been influenced by global trends. One notable trend is the rise of impact investing, which focuses on generating positive social and environmental impact alongside financial returns. This trend has gained traction in the EAEU region, as investors recognize the potential for sustainable businesses to drive economic growth and address pressing social and environmental challenges.

Another trend is the increasing use of blockchain technology in capital raising, which offers transparency, security, and efficiency in the issuance and trading of securities. Local special circumstances in the EAEU region have further contributed to the development of the Capital Raising market. For example, many countries in the region have implemented regulatory reforms to facilitate capital raising and attract foreign investment.

This includes the introduction of crowdfunding regulations, the establishment of innovation funds, and the simplification of listing requirements for startups. These initiatives have created a favorable environment for entrepreneurs and investors, encouraging the growth of the Capital Raising market. Underlying macroeconomic factors have also played a role in the development of the Capital Raising market in the EAEU region.

Economic growth, favorable interest rates, and low inflation have provided a conducive environment for businesses to raise capital. Additionally, the region's young and dynamic population, coupled with a growing middle class, has created a strong demand for investment opportunities. This has attracted both domestic and foreign investors, further fueling the growth of the Capital Raising market.

In conclusion, the Capital Raising market in the EAEU region is experiencing significant growth due to customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors. The shift towards alternative financing options, global trends in impact investing and blockchain technology, regulatory reforms, and favorable macroeconomic conditions have all contributed to the development of the market. As the region continues to evolve, the Capital Raising market is expected to further expand, providing new opportunities for businesses and investors alike.

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on the amount of capital raised, the average of deal size and the number of deals.

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 data from OECD, 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, CPI, number of small and medium-sized enterprises (SME), new businesses registered (number) . 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.

Venture capital is the term used to call the financial resources provided by investors to startup firms and small businesses that show potential for long-term growth. It has become a very important source of capital for entrepreneurs, who often have problems with financing their needs through risk-averse banks. Venture capital investments incorporate a high level of risk as only some of the VC-backed companies develop into successful and highly profitable businesses. In 2020, the leading venture capital backed company worldwide was the Manbang Group, which based in Nanjing, China.