Capital Raising - Puerto Rico | Statista Market Forecast

The country in Puerto Rico is expected to see the Total Capital Raised in the Capital Raising market market reach US$95.71m in 2024.
Traditional Capital Raising is set to dominate the market with a projected market volume of US$95.32m in 2024.
When compared globally, the United States will lead in Capital Raised, generating US$195.4bn in 2024.
Puerto Rico's Capital Raising market is witnessing a surge in private equity investments, fueling growth and innovation in the local business ecosystem.

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 Puerto Rico is experiencing significant development and growth.

Customer preferences: In Puerto Rico, there is a strong preference among customers for diverse investment opportunities and access to capital. Investors are increasingly seeking out alternative investment options beyond traditional stocks and bonds. This has led to a rise in demand for capital raising activities such as private equity, venture capital, and crowdfunding.

Trends in the market: One of the key trends in the capital raising market in Puerto Rico is the increasing popularity of crowdfunding platforms. These platforms provide a way for entrepreneurs and small businesses to raise capital from a large number of individual investors. The ease of use and accessibility of crowdfunding platforms have made them an attractive option for entrepreneurs looking to fund their ventures. Another trend in the market is the growing interest in impact investing. Investors in Puerto Rico are increasingly seeking out opportunities that align with their values and have a positive social or environmental impact. This has led to an increase in capital raising activities focused on sustainable and socially responsible projects.

Local special circumstances: Puerto Rico's unique status as a territory of the United States provides certain advantages for capital raising activities. Companies based in Puerto Rico can access the US market and benefit from the legal and regulatory framework of the US while also enjoying certain tax incentives offered by the Puerto Rican government. This combination of factors makes Puerto Rico an attractive location for companies looking to raise capital.

Underlying macroeconomic factors: The development of the capital raising market in Puerto Rico can be attributed to several underlying macroeconomic factors. The Puerto Rican economy has been recovering from a period of economic decline, and as a result, there is increased investor confidence in the market. Additionally, the government has implemented policies to attract foreign investment and promote economic growth, which has further fueled the development of the capital raising market. In conclusion, the Capital Raising market in Puerto Rico is experiencing significant growth and development. Customer preferences for diverse investment opportunities and access to capital, along with trends such as the popularity of crowdfunding and impact investing, are driving this growth. The unique status of Puerto Rico as a territory of the United States and the underlying macroeconomic factors of economic recovery and government policies are also contributing to the development 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.