Capital Raising - Singapore | Statista Market Forecast

The country in Singapore is expected to see the Total Capital Raised in the Capital Raising market market reach US$13.15bn by 2024.
Traditional Capital Raising is set to lead the market with a projected market volume of US$12.87bn in 2024.
When compared globally, the United States will generate the most Capital Raised (US$195.4bn in 2024).
Singapore's Capital Raising market is experiencing a surge in Real Estate Investment Trusts (REITs) offerings, attracting both local 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 Singapore has been experiencing significant growth and development in recent years.

Customer preferences: Investors in Singapore have shown a strong preference for capital raising activities, particularly in the form of initial public offerings (IPOs) and private placements. This is driven by the desire to diversify their investment portfolios and capitalize on the potential returns offered by new and emerging companies. Additionally, Singapore's reputation as a global financial hub has attracted a large number of institutional investors who are actively seeking opportunities to invest in the region.

Trends in the market: One of the key trends in the capital raising market in Singapore is the increasing number of technology and fintech companies seeking funding. Singapore has positioned itself as a leading hub for technology and innovation, and this has attracted a significant amount of venture capital and private equity investment. As a result, many technology companies are choosing to list on the Singapore Exchange (SGX) or raise capital through private placements. Another trend in the market is the growing interest in sustainability and green financing. Singapore has made significant efforts to promote sustainable development and green initiatives, and this has translated into a strong demand for green bonds and sustainable financing options. Investors are increasingly looking for opportunities to support environmentally-friendly projects and companies, and this has led to a surge in green capital raising activities in Singapore.

Local special circumstances: Singapore's strong regulatory framework and investor-friendly policies have played a significant role in the development of the capital raising market. The government has implemented various measures to attract both local and foreign companies to list on the SGX, including tax incentives and streamlined listing processes. This has made Singapore an attractive destination for companies looking to raise capital in the region. Furthermore, Singapore's strategic location and connectivity to other Asian markets have also contributed to the growth of the capital raising market. Many companies see Singapore as a gateway to the larger Asian market, and this has led to an increase in cross-border capital raising activities. Singapore's well-established financial infrastructure and robust legal system have further facilitated these activities.

Underlying macroeconomic factors: The growth and development of the capital raising market in Singapore can be attributed to several underlying macroeconomic factors. Singapore has a stable and resilient economy, with strong GDP growth and low inflation rates. This provides a favorable environment for companies looking to raise capital, as investors are more willing to take on risk in a stable economic environment. Additionally, Singapore's strong financial sector and well-developed capital markets have provided companies with access to a wide range of financing options. The availability of diverse funding sources, including bank loans, equity financing, and debt instruments, has made it easier for companies to raise capital in Singapore. In conclusion, the capital raising market in Singapore is experiencing significant growth and development, driven by customer preferences for diversification and attractive investment opportunities. The market is characterized by a strong interest in technology and sustainability, as well as a favorable regulatory environment and robust financial infrastructure. These factors, combined with Singapore's stable macroeconomic conditions, have positioned the country as a leading destination for capital raising activities in the region.

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.