Capital Raising - Egypt | Statista Market Forecast

The country in Egypt is projected to witness a Total Capital Raised in the Capital Raising market market reaching US$69.86m in 2024.
Traditional Capital Raising is expected to dominate the market with a projected market volume of US$44.58m in 2024.
In global comparison, most Capital Raised will be generated the United States (US$195.4bn in 2024).
Egypt's Capital Raising market sees a surge in Initial Public Offerings (IPOs) as companies seek to raise funds for expansion and diversification.

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 Egypt has been witnessing significant development in recent years. Customer preferences in the market have shifted towards alternative sources of financing, such as venture capital and private equity, as traditional bank loans have become less accessible.

This trend can be attributed to the stricter lending criteria imposed by banks in the aftermath of the global financial crisis. Additionally, entrepreneurs and businesses are increasingly seeking equity financing to fuel their growth and expansion plans. Trends in the market indicate a growing interest in start-up financing, with a surge in the number of angel investors and incubators supporting early-stage companies.

This can be attributed to the rise of the entrepreneurial ecosystem in Egypt, which has been fostered by government initiatives and the emergence of co-working spaces and innovation hubs. Start-ups are seen as key drivers of economic growth and job creation, and investors are keen to tap into the potential of these high-growth ventures. Local special circumstances in Egypt have also played a role in the development of the Capital Raising market.

The country has a large youth population and a high rate of unemployment, which has fueled the entrepreneurial spirit and the need for alternative sources of financing. Additionally, the government has implemented a number of reforms to attract foreign direct investment and promote entrepreneurship, including the establishment of specialized funds and the introduction of tax incentives for start-ups. Underlying macroeconomic factors have also contributed to the growth of the Capital Raising market in Egypt.

The country has experienced a period of political stability and economic reforms, which have improved investor confidence and created a favorable business environment. Furthermore, Egypt has a strong consumer market and a strategic geographic location, making it an attractive destination for both local and international investors. In conclusion, the Capital Raising market in Egypt is developing rapidly due to changing customer preferences, the rise of the entrepreneurial ecosystem, local special circumstances, and underlying macroeconomic factors.

The shift towards alternative sources of financing and the growing interest in start-up financing are driving the growth of the market. With continued government support and a favorable business environment, the Capital Raising market in Egypt is expected to continue its upward trajectory.

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.