Market Insights Financial Capital Raising

Traditional Capital Raising - Argentina

Argentina

Argentina is projected to reach a Total Capital Raised of US$715.40m in the Traditional Capital Raising market market by 2024.
The market in Argentina is expected to be dominated by Venture Capital, with a projected market volume of US$698.40m in 2024.
When compared globally, the United States is forecasted to generate the most Capital Raised, amounting to US$159,000.0m in 2024.
In Argentina, traditional capital raising methods like IPOs are gaining traction in the capital raising market amid economic reforms and increasing investor confidence.

Key regions: Israel, Brazil, United States, Europe, United Kingdom

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Analyst Opinion

The Traditional Capital Raising market in Argentina has been experiencing significant development in recent years.

Customer preferences: In Argentina, there is a growing preference among businesses to raise capital through traditional methods such as bank loans, bonds, and equity offerings. This is due to the established trust and familiarity that these methods provide to both businesses and investors. Additionally, traditional capital raising methods allow businesses to maintain control over their operations and decision-making processes, which is highly valued by many Argentine entrepreneurs.

Trends in the market: One of the key trends in the Traditional Capital Raising market in Argentina is the increasing demand for bank loans. This can be attributed to the relatively low interest rates offered by banks, making it an attractive option for businesses looking to raise capital. Furthermore, the availability of government-backed loan programs has also contributed to the popularity of bank loans as a capital raising method. Another trend in the market is the rise of corporate bond issuances. Many businesses in Argentina are turning to the bond market to raise capital, as it provides them with access to a wider pool of investors and allows for greater flexibility in terms of the amount and timing of capital raised. The demand for corporate bonds is driven by both domestic and international investors who are attracted to the high yields offered by Argentine bonds.

Local special circumstances: Argentina's unique economic and political landscape has also played a role in the development of the Traditional Capital Raising market. The country has a history of economic volatility, with periods of high inflation and currency devaluation. As a result, businesses in Argentina have traditionally relied on traditional capital raising methods to mitigate the risks associated with these economic uncertainties. Furthermore, the Argentine government has implemented policies to support the development of the capital markets. This includes the introduction of tax incentives for investors in certain types of securities, as well as the establishment of regulatory frameworks that promote transparency and investor protection.

Underlying macroeconomic factors: The development of the Traditional Capital Raising market in Argentina is also influenced by underlying macroeconomic factors. The country has been experiencing a period of economic growth, which has increased the demand for capital among businesses. Additionally, the low interest rate environment and the availability of liquidity in the banking system have made traditional capital raising methods more attractive to businesses. In conclusion, the Traditional Capital Raising market in Argentina is developing due to customer preferences for familiar and trusted capital raising methods, such as bank loans and bond issuances. The local special circumstances, including the economic and political landscape, as well as government policies, have also contributed to the growth of the market. Furthermore, underlying macroeconomic factors, such as economic growth and low interest rates, have increased the demand for traditional capital raising methods among businesses in Argentina.

Methodology

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on the amount of capital raised, the average 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), and 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. The scenario analysis is based on a Monte Carlo simulation approach generating a range of possible outcomes by creating random variations in forecasted data points, based on assumptions about potential fluctuations in future values. By running numerous simulated scenarios, the model provides an estimated distribution of results, allowing for an analysis of likely ranges and confidence intervals around the forecast.

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.