Market Insights Financial Capital Raising

Traditional Capital Raising - Guatemala

Guatemala

Total Capital Raised in the Traditional Capital Raising market market in Guatemala is expected to reach US$69.5m by 2024.
Venture Capital is set to lead the market with a projected market volume of US$63.4m in 2024.
When compared globally, the United States is anticipated to generate the highest Capital Raised amount, reaching US$296,400.0m by 2024.
In Guatemala, the traditional capital raising market is seeing a resurgence in interest from local investors seeking diverse investment opportunities.

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

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Analyst Opinion

The Traditional Capital Raising market in Guatemala has been experiencing significant growth in recent years, driven by various factors such as customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors. Customer preferences in Guatemala have been shifting towards traditional capital raising methods due to their perceived stability and reliability.

Investors in Guatemala tend to be risk-averse and prefer to invest in established businesses with a proven track record. This preference for traditional capital raising methods has led to an increase in demand for initial public offerings (IPOs) and corporate bonds. In addition to customer preferences, there are several trends in the market that have contributed to the development of the Traditional Capital Raising market in Guatemala.

One such trend is the increasing number of companies seeking to raise capital to fund their expansion plans. As the Guatemalan economy continues to grow, businesses are looking for ways to finance their expansion projects and tap into new markets. This has led to a surge in IPO activity, with companies going public to raise the necessary funds.

Another trend in the market is the growing interest in corporate bonds. As interest rates remain low, investors are searching for higher-yielding investment opportunities. Corporate bonds offer attractive returns compared to other fixed-income securities, making them an appealing option for investors in Guatemala.

This trend has led to an increase in the issuance of corporate bonds by both domestic and international companies operating in the country. Local special circumstances also play a role in the development of the Traditional Capital Raising market in Guatemala. The country has a well-established stock exchange, the Bolsa de Valores de Guatemala, which provides a platform for companies to raise capital through IPOs.

The stock exchange has implemented measures to improve transparency and investor protection, making it an attractive avenue for companies seeking to go public. Underlying macroeconomic factors have also contributed to the growth of the Traditional Capital Raising market in Guatemala. The country's stable economic growth and low inflation rate have created a favorable environment for businesses to raise capital.

Additionally, the government has implemented policies to promote investment and economic development, further supporting the growth of the capital raising market. In conclusion, the Traditional Capital Raising market in Guatemala is developing due to customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors. Investors in Guatemala prefer traditional capital raising methods, leading to an increase in IPOs and corporate bond issuances.

The market is also driven by the growing interest in corporate bonds and the country's well-established stock exchange. Furthermore, the stable economic growth and supportive government policies have created a conducive environment for businesses to raise capital.

Methodology

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.