Traditional Capital Raising - Ghana

The Total Capital Raised in Ghana's Traditional Capital Raising market market is projected to reach US$334.10m in 2024.
Venture Capital dominates the market with a projected market volume of US$327.30m in 2024.
In global comparison, most Capital Raised will be generated the United States (US$159.0bn in 2024).
In Ghana, the Traditional Capital Raising market is witnessing a shift towards more structured and transparent fundraising processes to attract local investors.

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 Ghana is experiencing significant growth and development in recent years.

Customer preferences: Ghanaian investors have shown a strong preference for traditional capital raising methods such as bank loans and private equity investments. This can be attributed to a combination of factors including familiarity, trust, and perceived stability. Ghanaian investors tend to have a conservative approach to investing and prefer traditional methods that have been proven over time. Additionally, cultural factors play a role in shaping customer preferences, as Ghanaians value personal relationships and trust when it comes to financial transactions.

Trends in the market: One of the key trends in the Traditional Capital Raising market in Ghana is the increasing demand for bank loans. Ghanaian businesses, both small and large, are increasingly relying on bank loans to fund their operations and expansion plans. This trend can be attributed to the growing economy and the need for capital to support business growth. Additionally, banks in Ghana have become more willing to lend to businesses, which has further fueled the demand for bank loans. Another trend in the market is the rise of private equity investments. Ghana has seen an increase in private equity firms entering the market, attracted by the country's growing economy and investment opportunities. Private equity investments provide businesses with access to capital and expertise, which can help drive growth and expansion. This trend is expected to continue as more investors recognize the potential of the Ghanaian market.

Local special circumstances: Ghana has a relatively stable political and economic environment, which has contributed to the growth of the Traditional Capital Raising market. The government has implemented policies to attract foreign investment and promote economic growth. Additionally, the country has a well-developed financial sector, with a strong banking system and a growing number of private equity firms. These factors create a conducive environment for traditional capital raising activities.

Underlying macroeconomic factors: The growth of the Traditional Capital Raising market in Ghana can be attributed to several underlying macroeconomic factors. Firstly, Ghana has experienced sustained economic growth in recent years, driven by sectors such as oil and gas, mining, and agriculture. This has created opportunities for businesses to expand and has increased the demand for capital. Secondly, the government has implemented policies to promote financial inclusion and access to credit. This has made it easier for businesses to access capital through traditional channels such as bank loans. Additionally, the government has introduced initiatives to support entrepreneurship and small business development, further fueling the demand for capital. In conclusion, the Traditional Capital Raising market in Ghana is experiencing growth and development due to customer preferences for traditional methods, increasing demand for bank loans, and the rise of private equity investments. The country's stable political and economic environment, along with underlying macroeconomic factors such as sustained economic growth and government policies, have created a conducive environment for traditional capital raising activities.

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.