Capital Raising - Gambia | Statista Market Forecast

The Gambia is a country where the Total Capital Raised in the Capital Raising market market is projected to reach US$2.17k in 2024.
Digital Capital Raising dominates the market in the Gambia with a projected market volume of US$2.17k in 2024.
In global comparison, most Capital Raised will be generated the United States (US$195.4bn in 2024).
In Gambia, the trend of utilizing microfinance institutions for capital raising is gaining traction among small businesses and entrepreneurs.

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 Gambia has been experiencing significant growth in recent years, driven by several key factors.

Customer preferences: In Gambia, there is a growing preference among businesses to seek external funding for their capital needs. This is primarily due to the limited availability of internal resources and the desire to expand and diversify their operations. Additionally, businesses are increasingly looking for alternative sources of funding to reduce their reliance on traditional bank loans, which can be difficult to obtain due to strict lending requirements. As a result, there has been a surge in demand for capital raising options such as equity financing, debt financing, and crowdfunding.

Trends in the market: One of the major trends in the capital raising market in Gambia is the increasing popularity of equity financing. Businesses are realizing the benefits of selling shares in their company to external investors, as it provides them with the necessary funds without incurring additional debt. This trend is particularly evident among startups and small to medium-sized enterprises (SMEs), which often struggle to secure bank loans. Equity financing not only provides these businesses with the necessary capital but also allows them to tap into the expertise and networks of their investors. Another trend in the market is the rise of crowdfunding platforms. These online platforms allow businesses to raise capital from a large number of individuals, often in small amounts. Crowdfunding has gained popularity in Gambia due to its accessibility and ability to reach a wider pool of potential investors. This trend has been further fueled by the increasing use of social media and digital platforms, which have made it easier for businesses to promote their crowdfunding campaigns and attract investors.

Local special circumstances: Gambia's small economy and limited financial infrastructure have created unique circumstances in the capital raising market. While this presents challenges, it also offers opportunities for innovation and growth. The relatively small size of the market means that businesses have to be creative in their capital raising strategies, exploring non-traditional avenues such as microfinance institutions and angel investors. Additionally, the government has taken steps to promote entrepreneurship and attract foreign investment, which has further contributed to the growth of the capital raising market.

Underlying macroeconomic factors: Several macroeconomic factors have contributed to the development of the capital raising market in Gambia. The country has experienced stable economic growth in recent years, which has increased business confidence and encouraged investment. Additionally, the government has implemented reforms to improve the business environment and attract foreign direct investment. These factors have created a favorable climate for capital raising activities. Furthermore, Gambia's youthful population and growing middle class have created a demand for new products and services, driving the need for businesses to raise capital to meet these demands. Overall, the combination of favorable macroeconomic conditions and changing customer preferences has fueled the growth of the capital raising market in Gambia.

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.