Capital Raising - Georgia | Statista Market Forecast

The country in Georgia is projected to see a Total Capital Raised in the Capital Raising market market reaching US$48.14m in 2024.
Traditional Capital Raising is set to dominate the market with a projected market volume of US$46.68m in 2024.
In global comparison, the United States will generate the most Capital Raised (US$195.4bn in 2024).
In Georgia, the Capital Raising market is experiencing a surge in interest from foreign investors seeking high-growth opportunities in the region.

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 Georgia has been experiencing steady growth in recent years.

Customer preferences: Investors in Georgia have shown a strong preference for capital raising activities, particularly in the real estate sector. The demand for real estate investments has been driven by the country's growing economy and the increasing number of foreign investors looking to enter the Georgian market. Additionally, there is a growing interest in crowdfunding platforms, which provide individuals with the opportunity to invest in a wide range of projects and businesses.

Trends in the market: One of the key trends in the capital raising market in Georgia is the increasing use of alternative financing options. Traditional bank loans are no longer the only source of capital for businesses and individuals. Crowdfunding platforms, peer-to-peer lending, and angel investors are becoming more popular, offering alternative ways to raise funds. This trend is driven by the desire for more flexible and accessible financing options, as well as the potential for higher returns. Another trend in the market is the rise of impact investing. Investors are increasingly looking for opportunities that not only provide financial returns but also have a positive social or environmental impact. This trend is in line with the global shift towards sustainable investing and reflects the growing awareness of environmental and social issues among investors in Georgia.

Local special circumstances: Georgia's strategic location at the crossroads of Europe and Asia has made it an attractive destination for foreign investors. The country has implemented a number of reforms to improve its business environment and attract investment, including simplifying regulations and reducing bureaucracy. These efforts have been successful in attracting foreign direct investment, which has contributed to the growth of the capital raising market. Additionally, Georgia has a strong startup ecosystem, with a number of successful tech companies emerging in recent years. This has created a fertile ground for capital raising activities, as investors are eager to support innovative and high-growth potential startups. The government has also introduced various initiatives to support the development of the startup ecosystem, such as tax incentives and funding programs.

Underlying macroeconomic factors: The growth of the capital raising market in Georgia can be attributed to several underlying macroeconomic factors. The country has experienced a period of stable economic growth, driven by sectors such as tourism, agriculture, and construction. This has created a favorable investment climate and increased investor confidence. Furthermore, Georgia has made significant progress in its integration with the global economy. The country has signed free trade agreements with numerous countries and is a member of international organizations such as the World Trade Organization. This has opened up new opportunities for trade and investment, attracting foreign investors to the Georgian market. In conclusion, the capital raising market in Georgia is developing due to customer preferences for real estate investments and alternative financing options, as well as the rise of impact investing. The country's strategic location, strong startup ecosystem, stable economic growth, and integration with the global economy are all contributing factors to the growth of the market.

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.