Market Insights Financial Capital Raising

Traditional Capital Raising - Equatorial Guinea

Equatorial Guinea

The country in Equatorial Guinea is expected to see Total Capital Raised in the Traditional Capital Raising market market reaching US$5.60m in 2024.
Within this market, Venture Capital is set to dominate with a projected market volume of US$5.49m in 2024.
When compared globally, the United States is anticipated to generate the highest amount of Capital Raised (US$159,000.0m in 2024).
Equatorial Guinea's traditional capital raising market is experiencing a shift towards private equity investments to boost economic growth and diversification.

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

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Analyst Opinion

The Traditional Capital Raising market in Equatorial Guinea is experiencing significant development due to a variety of factors.

Customer preferences: Equatorial Guinea's market for traditional capital raising is driven by the preferences of local businesses and entrepreneurs. These individuals often prefer traditional methods of raising capital, such as bank loans and equity financing, due to their familiarity and the established relationships they have with local financial institutions. Additionally, cultural norms and traditions may also play a role in shaping customer preferences in the country.

Trends in the market: One of the key trends in the traditional capital raising market in Equatorial Guinea is the increasing demand for bank loans. Local businesses are seeking loans from financial institutions to fund their expansion plans, invest in new projects, and improve their operations. This trend is driven by the need for capital to support business growth and the relatively low interest rates offered by banks in the country. Another trend in the market is the growing interest in equity financing. While still relatively nascent, equity financing is gaining traction as a viable option for businesses looking to raise capital. This trend is driven by the potential for higher returns and the opportunity to attract strategic investors who can provide not only capital but also industry expertise and networks.

Local special circumstances: Equatorial Guinea's traditional capital raising market is influenced by several local special circumstances. One such circumstance is the dominance of the oil and gas industry in the country's economy. The presence of multinational oil companies has created opportunities for local businesses to provide goods and services to the industry, driving the need for capital to support these ventures. Additionally, the small size of the domestic market and the limited number of local investors also contribute to the unique circumstances of the capital raising market in Equatorial Guinea. As a result, businesses often look beyond the country's borders to attract foreign investors and explore international capital markets.

Underlying macroeconomic factors: The development of Equatorial Guinea's traditional capital raising market is also influenced by underlying macroeconomic factors. These factors include the country's economic growth, stability, and regulatory environment. The government's efforts to diversify the economy away from oil and gas and promote private sector development have created opportunities for businesses to access capital and grow. However, challenges such as limited access to financing, bureaucratic processes, and a lack of transparency in the business environment can hinder the growth of the capital raising market. In conclusion, the traditional capital raising market in Equatorial Guinea is developing due to customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors. The increasing demand for bank loans and the growing interest in equity financing reflect the evolving needs of local businesses. However, challenges such as limited access to financing and a complex regulatory environment need to be addressed to further stimulate the growth of the capital raising market in the country.

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.