Traditional Capital Raising - Greece

The Total Capital Raised in Greece's Traditional Capital Raising market market is expected to reach US$48.40m by 2024.
Venture Capital is set to lead the market with a projected volume of US$25.83m in 2024.
When compared globally, the United States is anticipated to generate the most Capital Raised (US$159.0bn in 2024).
Traditional capital raising in Greece is seeing a resurgence as local businesses seek stability amidst economic challenges.

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 Greece has been experiencing significant growth and development in recent years.

Customer preferences: Greek customers have shown a strong preference for traditional capital raising methods, such as bank loans and equity financing, due to their familiarity and perceived reliability. This preference is driven by a conservative approach to finance and a desire for stability and security. Additionally, Greek customers have historically had limited access to alternative financing options, further reinforcing their reliance on traditional capital raising methods.

Trends in the market: One of the key trends in the Traditional Capital Raising market in Greece is the increasing demand for bank loans. Greek businesses, particularly small and medium-sized enterprises (SMEs), have been seeking bank loans to fund their operations and expansion plans. This trend is driven by the need for liquidity and working capital, as well as the relatively low interest rates offered by Greek banks. Another trend in the market is the growing interest in equity financing. Greek companies are increasingly considering initial public offerings (IPOs) or private placements to raise capital. This trend is fueled by the improving economic conditions in Greece, as well as the desire to attract foreign investment and expand into new markets.

Local special circumstances: The Traditional Capital Raising market in Greece is influenced by several local special circumstances. One such circumstance is the impact of the Greek debt crisis, which has led to stricter lending practices by Greek banks. As a result, businesses have had to explore alternative financing options, such as equity financing. Another special circumstance is the presence of a large number of family-owned businesses in Greece. These businesses often rely on traditional capital raising methods, as they prefer to maintain control and ownership within the family. This preference for traditional financing methods has contributed to the growth of the Traditional Capital Raising market in Greece.

Underlying macroeconomic factors: The growth and development of the Traditional Capital Raising market in Greece can be attributed to several underlying macroeconomic factors. Firstly, the Greek economy has been recovering from the effects of the debt crisis, with GDP growth and improved investor confidence. This has created a favorable environment for capital raising activities. Secondly, the low interest rate environment in Greece has made bank loans an attractive option for businesses. The European Central Bank's monetary policy measures, aimed at stimulating economic growth, have resulted in lower borrowing costs for Greek businesses. Lastly, the government of Greece has implemented various initiatives to support capital raising activities, such as tax incentives for equity investments and the establishment of a national development bank. These measures have encouraged businesses to explore different financing options and have contributed to the growth of the Traditional Capital Raising market in Greece.

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.