Traditional Capital Raising - Iran

The country in Iran is expected to see Total Capital Raised in the Traditional Capital Raising market market reach US$30.04m in 2024.
Venture Capital is set to dominate the market with a projected market volume of US$27.36m in 2024.
When compared globally, the United States will lead in Capital Raised, with US$159.0bn in 2024.
Iran's Traditional Capital Raising market is experiencing a resurgence in interest among local investors seeking Sharia-compliant investment opportunities.

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 Iran is experiencing significant growth and development, driven by several key factors.

Customer preferences: Iranian investors have traditionally favored traditional capital raising methods, such as bank loans and personal savings. However, there has been a noticeable shift in customer preferences towards alternative capital raising methods, such as equity crowdfunding and venture capital. This shift can be attributed to the increasing awareness and acceptance of these alternative methods, as well as the desire for higher returns on investment.

Trends in the market: One of the key trends in the Traditional Capital Raising market in Iran is the rise of equity crowdfunding platforms. These platforms allow individuals to invest in startups and small businesses in exchange for equity. This trend is driven by the growing number of startups in Iran's technology and innovation sectors, as well as the increasing interest from both domestic and international investors. Another trend in the market is the growing popularity of venture capital investments. Iranian entrepreneurs are increasingly seeking venture capital funding to support the growth of their businesses. This trend is fueled by the availability of venture capital funds in Iran, as well as the increasing number of successful startups in the country.

Local special circumstances: Iran has a large and young population, which presents a significant market opportunity for traditional capital raising. The country's young population is increasingly entrepreneurial and tech-savvy, which has led to the growth of startups and small businesses. Additionally, the government has implemented policies to support entrepreneurship and innovation, further fueling the growth of the Traditional Capital Raising market.

Underlying macroeconomic factors: Several macroeconomic factors are driving the development of the Traditional Capital Raising market in Iran. The country's economy has been recovering from the impact of international sanctions, leading to increased investor confidence and economic stability. Additionally, the government has implemented economic reforms to attract foreign investment and promote economic growth. These factors have created a favorable environment for traditional capital raising in Iran. In conclusion, the Traditional Capital Raising market in Iran is experiencing significant growth and development, driven by customer preferences for alternative capital raising methods, such as equity crowdfunding and venture capital. This trend is supported by the country's young and entrepreneurial population, as well as favorable macroeconomic factors. As the market continues to evolve, it is expected that traditional capital raising methods will play an increasingly important role in Iran's economy.

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.