Traditional Capital Raising - Belgium

The Total Capital Raised in the Traditional Capital Raising market market in Belgium is forecasted to reach US$369.10m in 2024.
Venture Capital leads the market with a projected market volume of US$304.50m in 2024.
When compared globally, the majority of Capital Raised is expected to be generated the United States (US$159.0bn in 2024).
Belgium's capital raising market is experiencing a resurgence in traditional methods, with a focus on local investors and established networks.

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

Belgium, a country known for its rich history and vibrant culture, is also experiencing significant developments in its Traditional Capital Raising market. Customer preferences in Belgium have been shifting towards more traditional forms of capital raising, such as bank loans and private placements.

This can be attributed to the stability and reliability that these methods offer. Many Belgian businesses prefer the security of working with established financial institutions and investors, rather than exploring riskier alternatives. Additionally, the low interest rates in the country have made borrowing from banks an attractive option for businesses looking to raise capital.

Trends in the market show an increase in the number of businesses opting for private placements. This can be attributed to the flexibility and customization that private placements offer. By raising capital through private placements, businesses can negotiate terms that are tailored to their specific needs and goals.

This trend is particularly prominent in the technology and healthcare sectors, where companies often require significant investments to fund research and development projects. Another trend in the market is the growing popularity of crowdfunding as a capital raising method. Crowdfunding platforms have gained traction in Belgium, providing a new avenue for entrepreneurs and small businesses to raise capital.

This trend is driven by the increasing digitalization of the economy and the ease of access to a large pool of potential investors. Crowdfunding allows businesses to tap into a wider network of individuals who are willing to invest smaller amounts, making it an attractive option for startups and innovative projects. Local special circumstances in Belgium also contribute to the development of the Traditional Capital Raising market.

The country has a strong entrepreneurial culture, with a high number of startups and small businesses. This creates a favorable environment for capital raising activities, as there is a constant demand for funding. Additionally, Belgium has a well-established financial sector, with a large number of banks and financial institutions operating in the country.

This provides businesses with a wide range of options when it comes to choosing a capital raising method. Underlying macroeconomic factors also play a role in the development of the Traditional Capital Raising market in Belgium. The country has a stable economy and a favorable business environment, which attracts both domestic and international investors.

The government has implemented policies to encourage entrepreneurship and innovation, further supporting the growth of the capital raising market. Additionally, Belgium's strategic location in Europe makes it an attractive destination for businesses looking to expand their operations and access the wider European market. In conclusion, the Traditional Capital Raising market in Belgium is experiencing significant developments driven by customer preferences, market trends, local special circumstances, and underlying macroeconomic factors.

The shift towards more traditional forms of capital raising, the rise of private placements and crowdfunding, the entrepreneurial culture, and the stable economy all contribute to the growth and evolution 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.