Capital Raising - Taiwan | Statista Market Forecast

The country in Taiwan is expected to see the Total Capital Raised in the Capital Raising market market reach US$189.50m by 2024.
Traditional Capital Raising is set to dominate the market with a projected market volume of US$151.80m in 2024.
When compared globally, the United States will lead in Capital Raised generation with US$195.4bn in 2024.
Taiwan's Capital Raising market is seeing a surge in tech startups utilizing IPOs to raise funds for expansion and innovation.

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 Taiwan has been experiencing significant growth in recent years, driven by several key factors.

Customer preferences: Taiwanese investors have shown a strong preference for capital raising activities, particularly in the form of initial public offerings (IPOs) and bond issuances. This is due to the potential for high returns and the opportunity to diversify investment portfolios. Additionally, there is a growing interest in socially responsible investing, with investors seeking out companies that align with their values and contribute to sustainable development.

Trends in the market: One major trend in the Capital Raising market in Taiwan is the increasing number of IPOs. Companies are choosing to go public in order to raise funds for expansion and to enhance their visibility in the market. This trend is fueled by the robust performance of the Taiwanese stock market and the growing demand for investment opportunities. Another trend is the rising popularity of bond issuances, particularly green bonds. Taiwanese companies are increasingly recognizing the importance of sustainable finance and are issuing green bonds to fund environmentally friendly projects. This trend is in line with global efforts to combat climate change and promote sustainable development.

Local special circumstances: Taiwan has a highly developed financial market and a well-regulated capital market, which provides a conducive environment for capital raising activities. The Taiwan Stock Exchange (TWSE) and the Taipei Exchange (TPEx) are the primary platforms for IPOs, while the Taiwan Bond Market Association (TBMA) oversees the bond market. These institutions play a crucial role in facilitating capital raising activities and ensuring transparency and investor protection. Furthermore, Taiwan has a strong entrepreneurial culture and a vibrant startup ecosystem. This has led to an increase in the number of tech startups seeking funding through IPOs and venture capital investments. The government has also implemented policies to support the growth of startups, further fueling the capital raising market.

Underlying macroeconomic factors: The strong performance of the Taiwanese economy has contributed to the growth of the capital raising market. Taiwan has a highly skilled workforce, a robust manufacturing sector, and a strong export-oriented economy. These factors have attracted both domestic and foreign investors, leading to an increase in capital inflows and investment opportunities. Additionally, low interest rates and ample liquidity in the financial system have made it easier for companies to raise capital through bond issuances. The government has also implemented measures to stimulate economic growth and encourage investment, further supporting the capital raising market. In conclusion, the Capital Raising market in Taiwan is experiencing significant growth due to customer preferences for IPOs and bond issuances, as well as the local special circumstances of a well-developed financial market and a strong entrepreneurial culture. The underlying macroeconomic factors, such as the strong performance of the Taiwanese economy and supportive government policies, have further contributed to 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.