Traditional Capital Raising - Eastern Europe

The country in Eastern Europe is projected to reach a Total Capital Raised of US$1.26bn in 2024 within the Traditional Capital Raising market market.
Venture Capital is set to dominate the market with a projected market volume of US$1.23bn in 2024.
In global comparison, the United States will lead in Capital Raised with US$159.0bn in 2024.
Amidst economic shifts, Poland's traditional capital raising market sees a surge in interest from local investors seeking diversified investment opportunities.

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

Investors in the region have shown a strong preference for traditional methods of capital raising, such as bank loans and equity financing. This preference can be attributed to a conservative approach to investment and a desire for stability and security. Additionally, cultural factors, including a historical reliance on traditional banking systems, have also influenced customer preferences in the region.

Trends in the market have also contributed to the development of the Traditional Capital Raising market in Eastern Europe. One prominent trend is the increasing demand for capital from small and medium-sized enterprises (SMEs). As these businesses seek to expand and grow, they require additional funding, and traditional capital raising methods have proven to be a reliable and accessible source of financing.

Furthermore, the rise of crowdfunding platforms in the region has provided SMEs with an alternative avenue for raising capital, further driving the growth of the Traditional Capital Raising market. Local special circumstances have also played a role in shaping the Traditional Capital Raising market in Eastern Europe. The region has a diverse range of economies, with countries at different stages of development.

This has led to varying levels of access to capital and different regulatory environments. In some countries, the lack of developed capital markets has made traditional methods of capital raising the primary option for businesses. Additionally, political and legal factors, such as the implementation of EU regulations, have influenced the market dynamics in the region.

Underlying macroeconomic factors have also contributed to the development of the Traditional Capital Raising market in Eastern Europe. Economic growth in the region has created opportunities for businesses to expand and invest in new projects, leading to an increased demand for capital. Additionally, low interest rates and favorable borrowing conditions have made traditional capital raising methods more attractive to businesses and investors alike.

Overall, the Traditional Capital Raising market in Eastern Europe is developing due to customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors. As the region continues to grow and evolve, it is likely that the market will further expand, providing businesses with a reliable and accessible source of capital.

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.