Capital Raising - Southeast Asia | Statista Market Forecast

Total Capital Raised in Southeast Asia's Capital Raising market market is forecasted to reach US$18.13bn in 2024.
Traditional Capital Raising leads the market with a projected market volume of US$16.39bn in 2024.
In global comparison, the United States is expected to generate the most Capital Raised (US$195.4bn in 2024).
In Singapore's capital raising market, tech startups are dominating the scene, attracting substantial investments from both local and international venture capital firms.

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 Southeast Asia has been experiencing significant growth in recent years, driven by customer preferences for alternative sources of funding and the region's favorable economic conditions.

Customer preferences: In Southeast Asia, customers have shown a growing preference for alternative sources of funding, such as venture capital and private equity, as opposed to traditional bank loans. This shift in preference can be attributed to several factors. Firstly, entrepreneurs and startups in the region are increasingly looking for investors who can provide not only capital but also strategic guidance and industry expertise. Venture capital and private equity firms are able to offer this support, making them attractive options for capital raising. Additionally, the rise of technology startups in Southeast Asia has created a demand for funding that traditional banks may not be equipped to meet. These startups often require significant upfront investment and have unique business models that may not fit within the parameters of traditional lending.

Trends in the market: One of the key trends in the Capital Raising market in Southeast Asia is the increasing number of venture capital and private equity deals. This trend can be attributed to several factors. Firstly, the region has seen a surge in entrepreneurial activity, with a growing number of startups emerging in sectors such as technology, e-commerce, and fintech. These startups often require significant funding to scale their operations and expand into new markets. Venture capital and private equity firms are stepping in to provide this funding, driving the increase in deals. Additionally, Southeast Asia has become an attractive destination for foreign investors, who are drawn to the region's rapidly growing economies and young, tech-savvy population. This influx of foreign capital has further fueled the growth of the Capital Raising market in Southeast Asia.

Local special circumstances: Each country in Southeast Asia has its own unique set of circumstances that contribute to the development of the Capital Raising market. For example, Singapore has positioned itself as a regional hub for startups and innovation, offering attractive incentives for entrepreneurs and investors. The country's strong legal and regulatory framework also provides a stable and secure environment for capital raising activities. In Indonesia, the largest economy in Southeast Asia, the government has implemented policies to promote entrepreneurship and attract foreign investment. This has led to a vibrant startup ecosystem and a growing number of capital raising opportunities. Other countries in the region, such as Malaysia and Thailand, are also actively promoting entrepreneurship and innovation, creating favorable conditions for capital raising.

Underlying macroeconomic factors: The Capital Raising market in Southeast Asia is also influenced by underlying macroeconomic factors. The region's strong economic growth, driven by factors such as rising middle-class consumption and urbanization, has created a favorable environment for capital raising. Investors are attracted to the region's potential for high returns and are willing to provide the necessary funding to support growth. Additionally, Southeast Asia's young and tech-savvy population presents a large consumer base for startups and innovative companies, making the region an attractive market for capital raising. The increasing integration of Southeast Asian economies through initiatives such as the ASEAN Economic Community has also facilitated cross-border capital raising activities, further driving the growth 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.