Capital Raising - Eastern Europe | Statista Market Forecast

The country in Eastern Europe is expected to see the Total Capital Raised in the Capital Raising market market reach US$1.60bn by 2024.
Traditional Capital Raising is set to dominate the market with a projected market volume of US$1.26bn by 2024.
When compared globally, the United States leads in Capital Raised, with US$195.4bn expected in 2024.
In Eastern Europe, Poland is experiencing a surge in initial public offerings (IPOs) as companies capitalize on favorable market conditions for capital raising.

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 Europe has been experiencing steady growth in recent years, driven by customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors. Customer preferences in Eastern Europe have been shifting towards alternative forms of capital raising, such as crowdfunding and peer-to-peer lending.

This is partly due to the rise of technology and the increasing popularity of online platforms that connect investors with entrepreneurs. These platforms offer a more accessible and transparent way for individuals and businesses to raise capital, bypassing traditional financial institutions. Additionally, customers in Eastern Europe have shown a preference for investing in local businesses and startups, as they believe in the potential for growth and development in their own region.

Trends in the market have also contributed to the growth of the Capital Raising market in Eastern Europe. One notable trend is the increasing number of startups and entrepreneurial ventures in the region. Eastern Europe has become a hub for innovation and entrepreneurship, with a growing number of tech startups and digital businesses emerging.

These startups often rely on external funding to fuel their growth and expansion, leading to an increased demand for capital raising services. Furthermore, there has been a rise in cross-border investments, with foreign investors showing interest in Eastern European markets. This has further fueled the demand for capital raising services, as companies seek to attract international investment.

Local special circumstances in Eastern Europe have also played a role in the development of the Capital Raising market. The region has a relatively underdeveloped financial sector, with limited access to traditional forms of financing. This has created a need for alternative sources of capital, leading to the growth of crowdfunding platforms and other innovative funding solutions.

Additionally, Eastern European countries have implemented favorable regulatory frameworks to support the growth of the Capital Raising market. These regulations aim to encourage entrepreneurship, attract foreign investment, and stimulate economic growth. Underlying macroeconomic factors have also contributed to the growth of the Capital Raising market in Eastern Europe.

The region has experienced stable economic growth in recent years, with improving business environments and increasing investor confidence. This has created a favorable climate for capital raising activities, as businesses and entrepreneurs seek to take advantage of the positive economic conditions. Additionally, low interest rates and ample liquidity in the financial markets have made capital raising more attractive, as investors search for higher returns on their investments.

Overall, the Capital Raising market in Eastern Europe is developing rapidly due to customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors. As the region continues to attract startups and foreign investors, the demand for capital raising services is expected to further increase. This presents opportunities for financial institutions, crowdfunding platforms, and other market participants to tap into the growing market and support the development of the Eastern European economy.

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.