Market Insights Financial Capital Raising

Traditional Capital Raising - Canada

Canada

The Total Capital Raised in the Traditional Capital Raising market market in Canada is projected to reach US$7.88bn in 2024.
Venture Capital dominates the market with a projected market volume of US$6.88bn in 2024.
In global comparison, most Capital Raised will be generated the United States (US$159,000.0m in 2024).
Traditional Capital Raising in Canada sees a notable shift towards alternative financing methods, reflecting a growing appetite for innovative investment structures.

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

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Analyst Opinion

The Traditional Capital Raising market in Canada is experiencing significant growth and development.

Customer preferences: In Canada, there is a strong preference among businesses and entrepreneurs to raise capital through traditional methods such as bank loans, private placements, and initial public offerings (IPOs). This preference is driven by the stability and reliability of these traditional capital raising methods, as well as the established network of financial institutions and investors in the country.

Trends in the market: One notable trend in the Traditional Capital Raising market in Canada is the increasing popularity of private placements. This method allows companies to raise capital from a select group of investors without going through the rigorous regulatory process of an IPO. Private placements are particularly attractive to smaller businesses and startups that may not meet the requirements for an IPO but still need capital to fuel their growth. Another trend is the growing interest in debt financing through bank loans. Canadian businesses are taking advantage of the historically low interest rates offered by banks to fund their operations and expansion plans. This trend is further supported by the strong creditworthiness of Canadian businesses and the stable financial system in the country.

Local special circumstances: One of the unique aspects of the Traditional Capital Raising market in Canada is the presence of government support programs and incentives for businesses. The Canadian government offers various grants, loans, and tax credits to encourage businesses to invest in research and development, innovation, and job creation. These programs provide additional avenues for businesses to raise capital and fuel their growth.

Underlying macroeconomic factors: The growth and development of the Traditional Capital Raising market in Canada can be attributed to several underlying macroeconomic factors. Firstly, Canada has a stable and well-regulated financial system, which provides a solid foundation for businesses to access capital. Additionally, the country has a strong and diversified economy, with industries such as finance, technology, natural resources, and manufacturing driving growth and attracting investment. Furthermore, Canada has a highly educated workforce and a culture of entrepreneurship, which fosters innovation and the creation of new businesses. This entrepreneurial spirit, combined with the availability of capital through traditional methods, contributes to the growth of the capital raising market in the country. In conclusion, the Traditional Capital Raising market in Canada is experiencing significant growth and development due to customer preferences for stability and reliability, the increasing popularity of private placements, the interest in debt financing through bank loans, government support programs and incentives, and underlying macroeconomic factors such as a stable financial system, a strong and diversified economy, and a culture of entrepreneurship.

Methodology

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on the amount of capital raised, the average 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), and 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. The scenario analysis is based on a Monte Carlo simulation approach generating a range of possible outcomes by creating random variations in forecasted data points, based on assumptions about potential fluctuations in future values. By running numerous simulated scenarios, the model provides an estimated distribution of results, allowing for an analysis of likely ranges and confidence intervals around the forecast.

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.