Traditional Capital Raising - France

The Total Capital Raised in the Traditional Capital Raising market market in France is expected to reach US$2.34bn in 2024.
Venture Capital is set to lead the market with a projected market volume of US$1.76bn in 2024.
When compared globally, the United States is anticipated to generate the most Capital Raised, with US$159.0bn in 2024.
In France, there is a growing preference for traditional capital raising methods, reflecting a conservative approach towards capital markets in the country.

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 France is experiencing significant growth and development.

Customer preferences: French investors have traditionally favored traditional capital raising methods, such as initial public offerings (IPOs) and private placements. However, there has been a shift in customer preferences towards alternative forms of capital raising, such as crowdfunding and peer-to-peer lending. This is driven by the desire for more accessible and flexible investment opportunities, as well as the potential for higher returns.

Trends in the market: One of the key trends in the Traditional Capital Raising market in France is the increasing popularity of crowdfunding platforms. These platforms allow individuals to invest in a wide range of projects and businesses, often with lower investment minimums than traditional methods. This trend is driven by the rise of technology and the increasing use of online platforms for financial transactions. Another trend in the market is the growing interest in sustainable and socially responsible investments. French investors are increasingly looking for investment opportunities that align with their values and have a positive impact on society and the environment. This trend is driven by the growing awareness of environmental and social issues, as well as the desire to make a difference through investment.

Local special circumstances: One of the key factors driving the development of the Traditional Capital Raising market in France is the strong entrepreneurial culture in the country. France has a vibrant startup ecosystem, with a large number of innovative and high-growth companies. These companies often require capital to fund their growth and expansion, creating opportunities for traditional capital raising methods. Another special circumstance in France is the strong support from the government for entrepreneurship and innovation. The French government has implemented various initiatives and programs to support startups and small businesses, including tax incentives and grants. This supportive environment has contributed to the growth of the Traditional Capital Raising market in the country.

Underlying macroeconomic factors: The development of the Traditional Capital Raising market in France is also influenced by underlying macroeconomic factors. The country has a stable and mature financial system, which provides a solid foundation for capital raising activities. Additionally, low interest rates and a favorable regulatory environment have made it attractive for investors to participate in traditional capital raising activities. Furthermore, France is part of the European Union (EU), which provides access to a large market and a diverse pool of investors. This has helped to attract foreign investors and increase the availability of capital for French businesses. The integration within the EU also allows for easier cross-border capital raising activities, further contributing to the development of the Traditional Capital Raising market in France. In conclusion, the Traditional Capital Raising market in France is experiencing growth and development driven by changing customer preferences, local special circumstances, and underlying macroeconomic factors. The shift towards alternative forms of capital raising, the strong entrepreneurial culture, and the support from the government are all contributing to the growth of the market. Additionally, the stable financial system, low interest rates, and access to a large market within the EU are further fueling the development of the Traditional Capital Raising market in France.

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.