Market Insights Financial Capital Raising

Traditional Capital Raising - Estonia

Estonia

The country in Estonia is expected to see Total Capital Raised in the Traditional Capital Raising market market reach US$96.42m by 2025.
Within this market, Venture Capital is set to dominate, with a projected market volume of US$95.24m by 2025.
When compared globally, the United States is anticipated to generate the most Capital Raised, with US$168,300.0m in 2025.
Estonia's traditional capital raising market is seeing a shift towards more tech-savvy crowdfunding platforms, offering diverse investment opportunities to local entrepreneurs.

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

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Currency

Analyst Opinion

The Traditional Capital Raising market in Estonia has been experiencing significant growth and development in recent years.

Customer preferences: Estonian investors have shown a strong preference for traditional capital raising methods, such as initial public offerings (IPOs) and private placements. This is due to the perceived stability and reliability of these methods, as well as the potential for high returns. Additionally, there is a growing interest in crowdfunding platforms, which provide an alternative way for individuals to invest in startups and small businesses.

Trends in the market: One of the key trends in the Traditional Capital Raising market in Estonia is the increasing number of IPOs. This can be attributed to several factors, including the strong performance of the Estonian economy, the availability of funding from venture capital firms, and the desire of companies to expand and grow their operations. As a result, more companies are choosing to go public in order to raise capital and access the public markets. Another trend in the market is the rise of private placements. This method of capital raising allows companies to raise funds from a select group of investors, often institutional investors or high-net-worth individuals. Private placements are attractive to companies because they can offer more flexibility and control over the terms of the investment, as well as access to a pool of experienced investors.

Local special circumstances: Estonia has a strong entrepreneurial culture and a vibrant startup ecosystem, which has contributed to the growth of the Traditional Capital Raising market. The country has a favorable business environment, with low taxes and a supportive regulatory framework, making it an attractive destination for both local and international investors. Additionally, Estonia has a highly educated workforce and a strong technology sector, which has led to the emergence of innovative and high-growth companies.

Underlying macroeconomic factors: The development of the Traditional Capital Raising market in Estonia is also influenced by several macroeconomic factors. The country has experienced steady economic growth in recent years, driven by strong domestic consumption, exports, and foreign direct investment. This has created a favorable business environment for companies looking to raise capital, as investors are more willing to take risks in a growing economy. Additionally, Estonia is part of the European Union, which provides access to a large market and opportunities for cross-border investments. In conclusion, the Traditional Capital Raising market in Estonia is developing rapidly, driven by customer preferences for traditional methods of capital raising, such as IPOs and private placements. The market is also influenced by local special circumstances, including a strong entrepreneurial culture and a supportive business environment. Furthermore, underlying macroeconomic factors, such as steady economic growth and EU membership, are contributing to the growth and development 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.