Market Insights Financial Capital Raising

Traditional Capital Raising - Bosnia and Herzegovina

Bosnia and Herzegovina

The country in Bosnia and Herzegovina is expected to witness a Total Capital Raised of US$43.4m in the Traditional Capital Raising market market by 2024.
Within this market, Venture Capital is set to lead with a projected market volume of US$34.8m in 2024.
When compared on a global scale, the United States is anticipated to generate the highest Capital Raised amounting to US$296,400.0m in 2024.
In Bosnia and Herzegovina, the trend in Traditional Capital Raising shows a preference for local investors supporting domestic businesses for economic growth.

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

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Analyst Opinion

The Traditional Capital Raising market in Bosnia and Herzegovina is experiencing steady growth and development.

Customer preferences: In Bosnia and Herzegovina, investors still prefer traditional methods of raising capital, such as bank loans and personal savings. This is primarily due to the conservative nature of the local population and their preference for low-risk investment options.

Trends in the market: However, there is a growing trend towards alternative methods of capital raising, such as crowdfunding and venture capital. This can be attributed to the increasing number of startups and small businesses in the country, which are seeking innovative ways to finance their growth. Additionally, the younger generation is more open to taking risks and exploring new investment opportunities, leading to a rise in demand for non-traditional capital raising options.

Local special circumstances: Bosnia and Herzegovina is a country with a complex political and economic environment. The legacy of the war in the 1990s and the subsequent political instability have hindered the development of a robust capital market. As a result, traditional capital raising methods, such as bank loans, remain the primary source of funding for businesses.

Underlying macroeconomic factors: The economic growth in Bosnia and Herzegovina has been modest in recent years, which has limited the availability of capital for businesses. The country's banking sector is also relatively underdeveloped compared to other European countries, making it more difficult for businesses to access financing. Furthermore, the lack of a well-functioning legal and regulatory framework for capital markets has created barriers to entry for both domestic and foreign investors. In conclusion, while the Traditional Capital Raising market in Bosnia and Herzegovina is developing, it still heavily relies on traditional methods such as bank loans and personal savings. However, there is a growing trend towards alternative methods of capital raising, driven by the increasing number of startups and small businesses in the country. The complex political and economic environment, along with the limited availability of capital and underdeveloped banking sector, pose challenges to the growth of the capital raising market. Nonetheless, with the right reforms and improvements in the legal and regulatory framework, Bosnia and Herzegovina has the potential to attract more investors and foster a more diverse and dynamic capital raising market.

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.