Traditional Capital Raising - Guinea

The country in Guinea is expected to see Total Capital Raised in the Traditional Capital Raising market market reach US$3.10m in 2024.
Venture Capital is set to dominate the market with a projected market volume of US$2.53m in 2024.
In global comparison, the United States will lead in Capital Raised, with US$159.0bn in 2024.
Guinea's Traditional Capital Raising market is seeing a resurgence in interest from local investors due to improved economic stability.

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 Guinea has been experiencing significant developments in recent years. Customer preferences have shifted towards alternative methods of raising capital, leading to the emergence of new trends in the market.

These changes can be attributed to local special circumstances and underlying macroeconomic factors. Customer preferences in Guinea have been influenced by the need for more accessible and efficient ways of raising capital. Traditional methods such as bank loans and personal savings are no longer the sole options for businesses and individuals.

There is a growing demand for innovative solutions that provide easier access to capital, such as crowdfunding platforms and peer-to-peer lending. This shift in preferences is driven by the desire for greater flexibility, lower costs, and a wider range of funding options. Trends in the market reflect these changing customer preferences.

Crowdfunding platforms have gained popularity in Guinea, providing a platform for entrepreneurs and small businesses to raise capital from a large pool of individual investors. This trend is fueled by the increasing use of technology and the internet, which has made it easier for individuals to connect and transact with each other. Additionally, peer-to-peer lending has emerged as an alternative to traditional bank loans, allowing individuals to borrow directly from other individuals or institutional investors.

These trends indicate a growing appetite for more inclusive and decentralized forms of capital raising. Local special circumstances in Guinea have also contributed to the developments in the traditional capital raising market. The country has a large informal sector, which comprises a significant portion of the economy.

Many individuals and businesses in the informal sector have limited access to formal financial services, making alternative methods of capital raising more attractive. Additionally, the lack of a well-developed banking system and limited availability of credit have further fueled the demand for alternative financing options. Underlying macroeconomic factors have played a role in shaping the traditional capital raising market in Guinea.

The country has experienced periods of economic instability and limited access to credit, which have prompted individuals and businesses to seek alternative sources of funding. Furthermore, the government has implemented policies and initiatives to promote entrepreneurship and small business development, which have encouraged the growth of alternative financing options. In conclusion, the Traditional Capital Raising market in Guinea has been evolving to meet the changing customer preferences for more accessible and efficient ways of raising capital.

The emergence of crowdfunding platforms and peer-to-peer lending reflect these trends. Local special circumstances, such as the large informal sector and limited access to formal financial services, have further contributed to the developments in the market. Underlying macroeconomic factors, including economic instability and government initiatives, have also played a role in shaping the market.

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.