Traditional Capital Raising - Egypt

The country in Egypt is expected to see Total Capital Raised in the Traditional Capital Raising market market reach US$44.58m.
Venture Capital is set to dominate the market with a projected market volume of US$38.51m in 2024.
When compared globally, the United States will lead in Capital Raised, generating US$159.0bn in 2024.
Egypt's Traditional Capital Raising market is experiencing a resurgence, with a focus on local investors supporting domestic businesses through traditional fundraising methods.

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 Egypt has been experiencing significant growth in recent years, driven by various factors. Customer preferences in the Traditional Capital Raising market in Egypt have been shifting towards more conservative investment options.

This is due to a combination of factors, including a desire for stable returns and a cautious approach to risk. Investors in Egypt are increasingly looking for investment opportunities that provide a steady income stream and are less susceptible to market volatility. As a result, traditional capital raising methods such as bank loans and bonds have become more popular among investors in Egypt.

One of the key trends in the Traditional Capital Raising market in Egypt is the increasing use of bank loans as a source of capital. Banks in Egypt have been actively lending to businesses and individuals, providing them with the necessary funds to invest in various projects. This trend can be attributed to the growing confidence in the Egyptian banking system, as well as the availability of low-interest rate loans.

Additionally, the government has implemented policies to encourage banks to lend more, further fueling the growth of the Traditional Capital Raising market in Egypt. Another trend in the Traditional Capital Raising market in Egypt is the rising popularity of bonds. Egyptian companies and the government have been issuing bonds to raise capital, attracting both domestic and international investors.

The appeal of bonds lies in their fixed income nature, making them an attractive investment option for risk-averse investors. Additionally, the government has been actively promoting the bond market, introducing reforms to make it more accessible and transparent. Local special circumstances in Egypt have also contributed to the development of the Traditional Capital Raising market.

For example, the government's efforts to diversify the economy and attract foreign investment have created opportunities for capital raising. The government has implemented policies to support entrepreneurship and innovation, encouraging the growth of small and medium-sized enterprises (SMEs) in Egypt. This has led to an increased demand for capital, which has been met through traditional capital raising methods.

Underlying macroeconomic factors have played a significant role in the development of the Traditional Capital Raising market in Egypt. The country has experienced stable economic growth in recent years, driven by factors such as increased government spending, infrastructure development, and a growing middle class. This has created a favorable environment for capital raising, as businesses and individuals have sought to take advantage of the opportunities presented by the growing economy.

In conclusion, the Traditional Capital Raising market in Egypt has been growing due to changing customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors. As investors in Egypt seek more conservative investment options, bank loans and bonds have become increasingly popular. The government's efforts to diversify the economy and attract foreign investment have also contributed to the development of the market.

Overall, the Traditional Capital Raising market in Egypt is expected to continue growing in the coming years, driven by these factors.

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.