Capital Raising - Estonia | Statista Market Forecast

The country in Estonia is projected to witness a Total Capital Raised in the Capital Raising market market of US$98.60m in 2024.
Traditional Capital Raising is expected to dominate the market with a projected market volume of US$95.14m in 2024.
In global comparison, the United States is anticipated to generate the most Capital Raised (US$195.4bn in 2024).
Estonia's Capital Raising market is witnessing a surge in crowdfunding platforms, offering diverse investment opportunities to local and international investors.

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

This can be attributed to the increasing popularity of these platforms, which provide individuals and businesses with easier access to capital. Additionally, customers are becoming more open to investing in startups and small businesses, as they see the potential for higher returns compared to traditional investment options. Trends in the market indicate a growing interest in technology-based startups and innovative projects.

Estonia has a thriving tech ecosystem, with a high number of startups and a supportive government that encourages entrepreneurship. This has attracted both local and international investors, who are keen to capitalize on the country's reputation as a hub for innovation. As a result, there has been an increase in the number of capital raising activities in the tech sector, with startups successfully securing funding for their ventures.

Local special circumstances also play a role in the development of the Capital Raising market in Estonia. The country has a small population and limited domestic market, which encourages businesses to seek external funding to fuel their growth. This has led to a more open and receptive attitude towards foreign investment, as Estonian companies recognize the need for international capital to expand their operations.

Additionally, the government has implemented policies and initiatives to attract foreign investors, such as tax incentives and streamlined regulations, further facilitating capital raising activities. Underlying macroeconomic factors contribute to the growth of the Capital Raising market in Estonia. The country has a stable and well-functioning financial system, which instills confidence in investors and encourages them to allocate their capital to Estonian businesses.

Furthermore, Estonia has a strong track record of economic growth, with a favorable business environment and low levels of corruption. These factors make it an attractive destination for both domestic and international investors, who see the potential for high returns on their investments. In conclusion, the Capital Raising market in Estonia is developing rapidly due to customer preferences for alternative financing options, the trend towards technology-based startups, local special circumstances that encourage external funding, and underlying macroeconomic factors that instill confidence in investors.

This growth is expected to continue in the coming years, as Estonia maintains its position as a thriving hub for innovation and entrepreneurship.

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.