Market Insights Financial Capital Raising

Traditional Capital Raising - Colombia

Colombia

The country in Colombia is expected to see the Total Capital Raised in the Traditional Capital Raising market market reach US$410.50m by 2024.
Within this market, Venture Capital is set to lead with a projected market volume of US$355.80m in 2024.
When compared globally, the United States is anticipated to generate the highest amount of Capital Raised, amounting to US$159,000.0m in 2024.
Colombia's Traditional Capital Raising market is experiencing a resurgence in interest from local investors seeking long-term investment opportunities.

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

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Analyst Opinion

The Traditional Capital Raising market in Colombia has been experiencing significant growth in recent years, driven by various factors such as customer preferences, local special circumstances, and underlying macroeconomic factors. Customer preferences in Colombia have played a crucial role in the development of the Traditional Capital Raising market.

Investors in the country have shown a growing interest in traditional methods of raising capital, such as initial public offerings (IPOs) and debt issuance. This preference can be attributed to the perceived stability and reliability of these traditional methods, as well as the potential for higher returns compared to alternative investment options. Additionally, Colombian investors tend to have a long-term investment horizon, which aligns well with the traditional capital raising process.

Trends in the market indicate a shift towards larger and more frequent capital raising activities. Colombian companies are increasingly looking to raise substantial amounts of capital to fund their expansion plans and take advantage of growth opportunities. This trend is driven by the country's strong economic performance and the increasing presence of multinational corporations in the market.

Furthermore, there has been a rise in the number of companies going public through IPOs, indicating a growing appetite for equity investments. Local special circumstances also contribute to the development of the Traditional Capital Raising market in Colombia. The country has a well-established regulatory framework that provides a conducive environment for capital raising activities.

The Colombian Stock Exchange (BVC) plays a crucial role in facilitating the listing and trading of securities, providing companies with access to a wide pool of investors. Additionally, the government has implemented policies to promote capital market development, including tax incentives for investors and streamlined listing processes for companies. Underlying macroeconomic factors further support the growth of the Traditional Capital Raising market in Colombia.

The country has experienced sustained economic growth over the past decade, driven by factors such as increased foreign investment, infrastructure development, and a growing middle class. This economic stability and growth create an attractive environment for both domestic and international investors, who are more inclined to participate in capital raising activities. In conclusion, the Traditional Capital Raising market in Colombia is developing at a rapid pace, driven by customer preferences, local special circumstances, and underlying macroeconomic factors.

The market is witnessing a shift towards larger and more frequent capital raising activities, with a growing preference for traditional methods such as IPOs and debt issuance. The country's well-established regulatory framework, coupled with its strong economic performance, further supports the growth of the market.

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.