Traditional Capital Raising - EAEU

Total Capital Raised in the Traditional Capital Raising market market in EAEU is forecasted to reach US$830.60m in 2024.
Venture Capital leads the market with a projected market volume of US$821.40m in 2024.
In global comparison, the United States is expected to generate the most Capital Raised (US$159.0bn in 2024).
In the EAEU, Traditional Capital Raising remains a prominent method for businesses to secure funding through established financial channels.

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

The Traditional Capital Raising market in EAEU is experiencing significant growth and development due to several key factors. Customer preferences are shifting towards more traditional forms of capital raising, such as bank loans and bonds, as they seek stability and security in their investments.

Additionally, local special circumstances, such as the presence of established financial institutions and regulatory frameworks, are contributing to the growth of the market. Furthermore, underlying macroeconomic factors, such as a growing economy and increased investor confidence, are also driving the development of the Traditional Capital Raising market in EAEU. Customer preferences in the EAEU region are leaning towards more traditional forms of capital raising.

This is due to a desire for stability and security in their investments, particularly in light of recent global economic uncertainties. Customers are increasingly seeking out established financial institutions that offer traditional banking services and products. This preference for stability and security is leading to a growth in the Traditional Capital Raising market, as customers opt for more conservative investment options such as bank loans and bonds.

In addition to customer preferences, local special circumstances in the EAEU region are also contributing to the development of the Traditional Capital Raising market. The presence of established financial institutions and regulatory frameworks provides a solid foundation for the growth of the market. These institutions have the expertise and infrastructure to support traditional capital raising activities, and their presence inspires confidence in customers.

Furthermore, the regulatory frameworks ensure that capital raising activities are conducted in a transparent and secure manner, further attracting customers to the market. Underlying macroeconomic factors are also playing a significant role in the development of the Traditional Capital Raising market in EAEU. The region is experiencing a growing economy, which is driving increased investment and capital raising activities.

As the economy expands, businesses and individuals are seeking capital to finance their growth and expansion plans. This increased demand for capital is fueling the growth of the Traditional Capital Raising market. Additionally, increased investor confidence in the region is also contributing to the development of the market.

As investors see the potential for growth and returns in the EAEU region, they are more willing to invest their capital, further driving the growth of the Traditional Capital Raising market. In conclusion, the Traditional Capital Raising market in EAEU is developing and growing due to customer preferences for stability and security, local special circumstances such as the presence of established financial institutions and regulatory frameworks, and underlying macroeconomic factors such as a growing economy and increased investor confidence. These factors are driving the growth of the market and shaping its development in the EAEU region.

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.