Capital Raising - New Zealand | Statista Market Forecast

The country of New Zealand is expected to see Total Capital Raised in the Capital Raising market market reaching US$270.90m in 2024.
Traditional Capital Raising is set to dominate the market with a projected market volume of US$257.80m in 2024 withNew_Zealand.
When compared globally, the United States is anticipated to generate the most Capital Raised, amounting to US$195.4bn in 2024.
New Zealand's Capital Raising market is experiencing a rise in investor interest in green bonds and sustainable investment opportunities.

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 New Zealand is experiencing significant growth and development.

Customer preferences: Investors in New Zealand are increasingly looking for opportunities to diversify their portfolios and generate higher returns. They are attracted to the Capital Raising market as it offers a wide range of investment options, including equity crowdfunding, private placements, and initial public offerings (IPOs). Additionally, investors are drawn to the transparency and regulatory framework of the market, which provides them with confidence in their investment decisions.

Trends in the market: One of the key trends in the Capital Raising market in New Zealand is the rise of equity crowdfunding. This form of capital raising allows companies to raise funds from a large number of individual investors, often through online platforms. Equity crowdfunding has gained popularity in recent years due to its accessibility and the opportunity it provides for retail investors to participate in early-stage investments. This trend is driven by the increasing number of startups and small businesses in New Zealand that are seeking alternative sources of funding. Another trend in the market is the growing number of private placements. Private placements involve the sale of securities to a select group of investors, such as institutional investors and high-net-worth individuals. This method of capital raising is particularly attractive to companies that want to raise capital quickly and without the extensive regulatory requirements associated with an IPO. Private placements also allow companies to maintain greater control over their ownership structure.

Local special circumstances: New Zealand's relatively small population and geographic isolation present unique challenges and opportunities for the Capital Raising market. The limited pool of potential investors means that companies need to carefully consider their target audience and tailor their capital raising strategies accordingly. This has led to the development of niche investment opportunities, such as investments in the country's thriving film industry or renewable energy projects. Furthermore, New Zealand's strong entrepreneurial culture and supportive government policies have contributed to the growth of the Capital Raising market. The government has implemented initiatives to encourage innovation and entrepreneurship, including tax incentives and grants for startups. This has created a favorable environment for companies seeking capital and has attracted both domestic and international investors.

Underlying macroeconomic factors: The Capital Raising market in New Zealand is also influenced by broader macroeconomic factors. The country's stable economy, low interest rates, and favorable business environment have contributed to investor confidence and the willingness to invest in capital raising opportunities. Additionally, New Zealand's strong ties with Asia-Pacific countries have facilitated cross-border investments and increased access to capital. In conclusion, the Capital Raising market in New Zealand is experiencing growth and development due to customer preferences for diversification and higher returns, as well as the rise of equity crowdfunding and private placements. The country's unique circumstances, such as its small population and supportive government policies, contribute to the market's growth. Furthermore, underlying macroeconomic factors, including a stable economy and favorable business environment, support investor confidence and the willingness to invest in capital raising opportunities.

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.