Capital Raising - Eastern Asia | Statista Market Forecast

The country in Eastern Asia is expected to see the Total Capital Raised in the Capital Raising market market reach US$102.10bn in 2024.
Traditional Capital Raising is set to dominate the market with a projected market volume of US$84.70bn in 2024.
When compared globally, the United States is forecasted to generate the most Capital Raised, amounting to US$195.4bn in 2024.
In Japan, the Capital Raising market is seeing a surge in demand for innovative fintech startups seeking venture capital funding.

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 Eastern Asia has been experiencing significant growth in recent years. This can be attributed to several factors including customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors.

Customer preferences in Eastern Asia have been shifting towards alternative forms of capital raising. Traditional methods such as bank loans and private placements are being supplemented with crowdfunding, initial coin offerings (ICOs), and venture capital funding. This shift is driven by a desire for more accessible and diverse investment opportunities, as well as the potential for higher returns.

Additionally, there is a growing interest in socially responsible investing, which has led to an increase in green bonds and sustainable finance initiatives. Trends in the market also contribute to the development of the Capital Raising market in Eastern Asia. One notable trend is the rise of technology-driven platforms that connect investors with businesses seeking capital.

These platforms provide a more efficient and transparent way to raise funds, particularly for small and medium-sized enterprises (SMEs) that may have difficulty accessing traditional financing channels. Another trend is the increasing participation of institutional investors in the region, attracted by the potential for higher returns and diversification. Local special circumstances further support the growth of the Capital Raising market in Eastern Asia.

The region is home to several dynamic economies, such as China, Japan, and South Korea, which have seen rapid growth and industrialization. These countries have a large number of innovative startups and high-growth companies that require capital to fuel their expansion. Additionally, government initiatives and regulatory reforms aimed at promoting entrepreneurship and innovation have created a favorable environment for capital raising activities.

Underlying macroeconomic factors also play a role in the development of the Capital Raising market in Eastern Asia. The region has a strong and stable economic foundation, with robust GDP growth and low inflation rates. This attracts both domestic and foreign investors, who are looking for attractive investment opportunities.

Furthermore, the region has a large pool of savings, which can be channeled into the Capital Raising market to support economic growth. In conclusion, the Capital Raising market in Eastern Asia is experiencing significant growth due to customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors. The shift towards alternative forms of capital raising, the emergence of technology-driven platforms, and the presence of dynamic economies in the region are all contributing to this development.

With a strong economic foundation and a favorable regulatory environment, Eastern Asia is well-positioned to continue its growth as a capital raising hub.

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.