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Traditional Capital Raising - Azerbaijan

Azerbaijan
  • The country in Azerbaijan is expected to see the Total Capital Raised in the Traditional Capital Raising market market reach US$1.63m in 2024.
  • Within this market, Venture Capital is set to dominate with a projected market volume of US$1.60m in 2024.
  • When compared globally, the United States is anticipated to generate the most Capital Raised, reaching US$159.0bn in 2024.
  • In Azerbaijan, the market for Traditional Capital Raising is seeing a shift towards more diverse investment opportunities and increased participation from foreign investors.

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.

Use the info button next to the boxes for more information on the data displayed.

In-Scope

  • Venture Capital
  • Venture Debt

Out-Of-Scope

  • Traditional bank loans
  • Digital capital raising
Traditional Capital Raising: market data & analysis - Cover

Market Insight report

Traditional Capital Raising: market data & analysis

Study Details

    Capital Raised

    Notes: Data shown is using current exchange rates. Data shown reflects market impacts of Russia-Ukraine war and the bankruptcy of the Silicon Valley Bank.

    Most recent update: Mar 2024

    Source: Statista Market Insights

    Notes: Data was converted from local currencies using average exchange rates of the respective year.

    Most recent update: Oct 2024

    Source: Statista Market Insights

    Average Deal Size

    Notes: Data was converted from local currencies using average exchange rates of the respective year.

    Most recent update: Oct 2024

    Source: Statista Market Insights

    Global Comparison

    Notes: Data was converted from local currencies using average exchange rates of the respective year.

    Most recent update: Oct 2024

    Source: Statista Market Insights

    Number of Deals

    Notes: Data was converted from local currencies using average exchange rates of the respective year.

    Most recent update: Oct 2024

    Source: Statista Market Insights

    Analyst Opinion

    The Traditional Capital Raising market in Azerbaijan has been experiencing steady growth in recent years, driven by a combination of customer preferences, market trends, local special circumstances, and underlying macroeconomic factors. Customer preferences in Azerbaijan have been shifting towards traditional capital raising methods due to their perceived stability and reliability.

    Investors in the country tend to have a conservative approach and prefer investments that offer long-term returns and low risk. This has led to an increased demand for traditional capital raising methods such as initial public offerings (IPOs) and debt financing. In terms of market trends, the Traditional Capital Raising market in Azerbaijan has seen a rise in IPO activity.

    Companies in various sectors, including finance, energy, and telecommunications, have chosen to go public to raise capital for expansion and investment opportunities. This trend can be attributed to the growing confidence in the country's economy and the government's efforts to attract foreign investment. Another trend in the market is the increased use of debt financing by companies in Azerbaijan.

    With interest rates at historically low levels, businesses have been taking advantage of favorable borrowing conditions to fund their growth initiatives. Debt financing provides companies with the flexibility to invest in new projects and expand their operations without diluting ownership. Local special circumstances also play a role in the development of the Traditional Capital Raising market in Azerbaijan.

    The country has a relatively small and developing financial market, which makes traditional capital raising methods more attractive compared to alternative options. Additionally, the government has implemented policies to encourage capital market development, such as the establishment of the Baku Stock Exchange and the introduction of regulations to protect investors' rights. Underlying macroeconomic factors have also contributed to the growth of the Traditional Capital Raising market in Azerbaijan.

    The country has experienced stable economic growth in recent years, supported by its oil and gas reserves. This has created a favorable investment climate and attracted both domestic and foreign investors. Additionally, the government has implemented economic reforms to diversify the economy and reduce dependence on oil revenues, which has further boosted investor confidence.

    In conclusion, the Traditional Capital Raising market in Azerbaijan is developing due to customer preferences for stable and reliable investment options, market trends such as increased IPO activity and debt financing, local special circumstances including a developing financial market and government policies, and underlying macroeconomic factors such as stable economic growth and diversification efforts. As these factors continue to support the growth of the market, it is expected to further expand in the coming years.

    Methodology

    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.

    Financial

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    Traditional Capital Raising: market data & analysis - BackgroundTraditional Capital Raising: market data & analysis - Cover

    Key Market Indicators

    Notes: Based on data from IMF, World Bank, UN and Eurostat

    Most recent update: Sep 2024

    Source: Statista Market Insights

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    Venture capital worldwide - statistics & facts

    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.
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