Traditional Capital Raising - Australia & Oceania

The Traditional Capital Raising market market in Australia & Oceania is expected to see a Total Capital Raised of US$981.00m by 2024.
Within this market, Venture Capital is set to lead with a projected market volume of US$956.40m in 2024.
When compared globally, the United States is anticipated to generate the highest amount of Capital Raised, reaching US$159.0bn by 2024.
Australia's traditional capital raising market is seeing a resurgence in interest from local investors seeking opportunities in diversified portfolios and innovative ventures.

Definition:

The Traditional Capital Raising market relates to venture investment in startups and emerging companies that are not yet generating positive or significant revenue but have high growth potential. The capital is mostly raised from venture financial institutions, and minorly from banks.

Structure:

The market consists of two segments:
- The Venture Capital market refers to private equity funding that is offered to startups and emerging companies.
- The Venture Debt market refers to the combination between equity and debt financing, which is used to finance the early stage and growth stage capital-backed companies.
The market data comprises of the amount of capital raised, number of deals, and average deal size.

Additional information:

Although the Traditional Capital Raising market is highly competitive in investment opportunities due to the rapidly high growth rate of startups and emerging companies, it has become more popular for these businesses who cannot get traditional loans from banks, to develop and grow their businesses or projects.
Key players in this market are companies such as Sequoia Capital and Hercules Capital.

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Venture Capital
Venture Debt

Traditional bank loans
Digital capital raising

The Traditional Capital Raising market in Australia & Oceania is experiencing significant growth and development.

Customer preferences: In recent years, there has been a shift in customer preferences towards traditional capital raising methods in Australia & Oceania. Investors are increasingly seeking out opportunities to invest in local businesses and projects, rather than relying solely on traditional financial institutions. This trend is driven by a desire for more control over investment decisions and a belief in the potential for higher returns.

Trends in the market: One of the key trends in the Traditional Capital Raising market in Australia & Oceania is the rise of crowdfunding platforms. These platforms provide a space for entrepreneurs and small businesses to raise capital from a large number of individual investors. This trend has been driven by the increasing popularity of crowdfunding as a way to support innovative ideas and projects. Additionally, the rise of social media and online platforms has made it easier for entrepreneurs to reach a wider audience and attract investors. Another trend in the market is the growing interest in impact investing. Investors are increasingly looking for opportunities to support businesses and projects that have a positive social or environmental impact. This trend is driven by a growing awareness of global challenges such as climate change and inequality, and a desire to align investments with personal values.

Local special circumstances: Australia & Oceania is home to a diverse range of industries and sectors, which presents unique opportunities for capital raising. The region has a strong mining and resources sector, as well as a growing technology and innovation sector. These industries often require significant capital investment to fund exploration, development, and research and development activities. As a result, there is a high demand for capital raising services in these sectors. Additionally, Australia & Oceania has a well-developed financial services industry, which provides a supportive environment for traditional capital raising activities. The region has a strong regulatory framework and a stable economy, which attracts both domestic and international investors.

Underlying macroeconomic factors: The growth and development of the Traditional Capital Raising market in Australia & Oceania is also influenced by underlying macroeconomic factors. One such factor is the low interest rate environment, which has made traditional forms of investment less attractive. Investors are seeking alternative investment opportunities that offer higher returns, and traditional capital raising methods provide a viable option. Furthermore, the region's strong economic growth and stable political environment have contributed to investor confidence. Australia & Oceania is seen as a safe and attractive investment destination, which has attracted both domestic and international investors to the Traditional Capital Raising market. In conclusion, the Traditional Capital Raising market in Australia & Oceania is experiencing growth and development due to changing customer preferences, emerging trends such as crowdfunding and impact investing, local special circumstances including diverse industries and a supportive financial services industry, and underlying macroeconomic factors such as low interest rates and a strong economy. These factors are driving increased interest in traditional capital raising methods and creating opportunities for businesses and investors 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.