Traditional Capital Raising - Austria

The Total Capital Raised in the Traditional Capital Raising market market in Austria is expected to reach US$174.30m in 2024.
Within this market, Venture Capital is set to dominate with a projected market volume of US$93.25m in 2024.
When compared globally, the United States is anticipated to generate the highest amount of Capital Raised, reaching US$159.0bn in 2024.
Austria's Traditional Capital Raising market sees a resurgence in interest from local investors seeking stable, long-term investment opportunities.

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 Austria has been experiencing significant growth in recent years.

Customer preferences: Austrian investors have shown a strong preference for traditional capital raising methods, such as initial public offerings (IPOs) and debt issuance. This is due to the perceived stability and reliability of these methods, as well as the potential for high returns. Additionally, Austrian investors tend to have a conservative approach to investing and prefer traditional investment vehicles that they are familiar with.

Trends in the market: One of the key trends in the Traditional Capital Raising market in Austria is the increasing number of IPOs. Companies in Austria are increasingly looking to raise capital through IPOs as a way to fund their growth and expansion plans. This trend is driven by several factors, including the favorable economic conditions in Austria, the availability of capital from investors, and the desire of companies to tap into the public markets for financing. Another trend in the market is the growing demand for debt issuance. Austrian companies are increasingly turning to debt markets to raise capital, as interest rates remain low and borrowing costs are favorable. This trend is driven by the need for companies to finance their operations, invest in new projects, and take advantage of growth opportunities.

Local special circumstances: One of the unique aspects of the Traditional Capital Raising market in Austria is the strong presence of family-owned businesses. These businesses often prefer traditional capital raising methods, such as IPOs and debt issuance, as they allow the family to retain control and ownership of the company while still accessing the capital needed for growth. This has contributed to the strong demand for traditional capital raising methods in Austria.

Underlying macroeconomic factors: The growth of the Traditional Capital Raising market in Austria can be attributed to several underlying macroeconomic factors. Firstly, Austria has a stable and well-regulated financial system, which provides a favorable environment for capital raising activities. Additionally, Austria has a strong economy with low unemployment rates and high levels of disposable income, which has increased the demand for investment opportunities. Finally, the low interest rate environment in Austria has made borrowing costs favorable for companies, further driving the demand for debt issuance. In conclusion, the Traditional Capital Raising market in Austria is experiencing significant growth due to customer preferences for traditional investment vehicles, such as IPOs and debt issuance. The increasing number of IPOs and the growing demand for debt issuance are key trends in the market. The presence of family-owned businesses and the underlying macroeconomic factors, such as a stable financial system and favorable borrowing costs, have also 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.