Capital Raising - Iran | Statista Market Forecast

The country in Iran is projected to reach a Total Capital Raised in the Capital Raising market market of US$33.80m in 2024.
Traditional Capital Raising, with a projected market volume of US$30.04m in 2024, dominates the market in Iran.
In global comparison, the United States is expected to generate the most Capital Raised (US$195.4bn in 2024).
Iran's capital raising market sees a surge in demand for Sharia-compliant financing options to attract both domestic 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 Iran has been experiencing significant growth in recent years.

Customer preferences: Customers in Iran have shown a strong preference for alternative methods of capital raising, such as crowdfunding and peer-to-peer lending. This can be attributed to several factors, including a lack of access to traditional banking services and a desire for more flexible and inclusive financing options. Additionally, customers in Iran have also shown a preference for Sharia-compliant financial products, which adhere to Islamic principles and values.

Trends in the market: One of the key trends in the Capital Raising market in Iran is the rise of crowdfunding platforms. These platforms provide individuals and businesses with the opportunity to raise capital from a large number of people, often through small contributions. The popularity of crowdfunding in Iran can be attributed to the high levels of internet penetration and smartphone usage in the country, as well as the growing entrepreneurial spirit among the younger generation. Another trend in the market is the increasing use of peer-to-peer lending platforms. These platforms connect borrowers directly with lenders, bypassing traditional financial institutions. This trend can be attributed to the desire for more efficient and transparent lending processes, as well as the growing distrust of traditional banks in Iran.

Local special circumstances: One of the unique aspects of the Capital Raising market in Iran is the influence of Islamic finance principles. Sharia-compliant financial products, which adhere to Islamic principles and values, are in high demand among customers in Iran. This has led to the development of specialized crowdfunding and peer-to-peer lending platforms that offer Sharia-compliant options.

Underlying macroeconomic factors: The growth of the Capital Raising market in Iran can be attributed to several underlying macroeconomic factors. Firstly, the country has a large and young population, which provides a strong customer base for capital raising platforms. Additionally, Iran has a high level of internet penetration and smartphone usage, which has facilitated the growth of online platforms. Finally, the government has implemented policies to support entrepreneurship and innovation, which has created a favorable environment for capital raising activities. In conclusion, the Capital Raising market in Iran is experiencing significant growth, driven by customer preferences for alternative financing options, the rise of crowdfunding and peer-to-peer lending platforms, the influence of Islamic finance principles, and underlying macroeconomic factors such as a large and young population, high internet penetration, and government support for 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.