Capital Raising - Peru | Statista Market Forecast

The country in Peru is projected to see the Total Capital Raised in the Capital Raising market market reach US$60.25m in 2024.
Traditional Capital Raising is set to dominate the market with a projected market volume of US$58.50m in 2024.
When compared globally, the United States is expected to generate the most Capital Raised, reaching US$195.4bn in 2024.
Peru's capital raising market is seeing a surge in interest from investors seeking opportunities in the country's growing tech and renewable energy sectors.

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 Peru has been experiencing significant growth in recent years.

Customer preferences: Peruvian investors have shown a strong appetite for capital raising opportunities, particularly in the form of initial public offerings (IPOs) and corporate bonds. This is driven by a desire to diversify their investment portfolios and seek higher returns. Additionally, there is a growing interest in socially responsible investments, with investors looking for opportunities that align with their values and have a positive impact on society and the environment.

Trends in the market: One of the key trends in the capital raising market in Peru is the increasing number of IPOs. Companies are opting to go public to raise funds for expansion and to provide liquidity to existing shareholders. This trend is driven by a favorable regulatory environment, improved investor confidence, and the strong performance of the Peruvian stock market. As a result, more companies are choosing to list on the stock exchange, providing investors with a wider range of investment opportunities. Another trend in the market is the growing popularity of corporate bonds. Companies are turning to the bond market to raise capital for various purposes, including financing projects, refinancing existing debt, and funding acquisitions. This trend is fueled by low interest rates, which make borrowing more attractive, and the increasing sophistication of the bond market in Peru.

Local special circumstances: One of the unique aspects of the capital raising market in Peru is the strong presence of family-owned businesses. These companies often have a long history and are deeply rooted in the local economy. They play a crucial role in the capital raising market, as they seek funding to support their growth and expansion plans. Family-owned businesses also tend to have a strong focus on sustainability and social responsibility, which aligns with the preferences of many Peruvian investors.

Underlying macroeconomic factors: The growth of the capital raising market in Peru is supported by several underlying macroeconomic factors. The country has experienced a period of sustained economic growth, driven by robust domestic demand, favorable demographics, and a stable political environment. This has created a favorable investment climate and attracted both domestic and foreign investors to the capital raising market. Furthermore, Peru has made significant progress in improving its regulatory framework and corporate governance standards. This has increased investor confidence and made the market more attractive for capital raising activities. The government has also implemented policies to promote capital market development and encourage investment in key sectors, such as infrastructure and renewable energy. In conclusion, the Capital Raising market in Peru is growing rapidly, driven by customer preferences for IPOs and corporate bonds, as well as the local special circumstances of family-owned businesses. This growth is supported by underlying macroeconomic factors, including sustained economic growth and improvements in the regulatory framework. As the market continues to develop, it is likely to attract more investors and provide new opportunities for companies to raise capital.

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.