Traditional Capital Raising - Ireland

The country in Ireland is projected to reach a Total Capital Raised of US$298.30m in 2024 within the Traditional Capital Raising market market.
Within this market, Venture Capital is set to dominate with a projected market volume of US$232.40m in 2024.
When compared globally, the United States is expected to generate the highest amount of Capital Raised, with US$159.0bn projected in 2024.
Ireland's Traditional Capital Raising market sees a resurgence in interest from local investors seeking to support domestic businesses amid economic uncertainty.

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 Ireland has been experiencing significant growth in recent years.

Customer preferences: Investors in Ireland have shown a strong preference for traditional capital raising methods such as initial public offerings (IPOs) and debt issuance. This is driven by a desire for stable returns and the perception of lower risk compared to alternative investment options. Additionally, Irish investors have a long-standing tradition of investing in local companies, which further contributes to the demand for traditional capital raising.

Trends in the market: One of the key trends in the Traditional Capital Raising market in Ireland is the increasing number of IPOs. Companies in various sectors, including technology, healthcare, and renewable energy, have chosen to go public to raise capital for expansion and growth. This trend is fueled by the strong performance of the Irish economy and the availability of capital from both domestic and international investors. Another trend in the market is the growing popularity of debt issuance. Irish companies are taking advantage of low interest rates to raise funds through the issuance of corporate bonds. This allows companies to diversify their sources of funding and take advantage of favorable market conditions.

Local special circumstances: Ireland's favorable tax environment and business-friendly regulations have made it an attractive destination for companies looking to raise capital. The country's low corporate tax rate and strong legal framework provide a stable and supportive environment for businesses. Additionally, Ireland's membership in the European Union provides companies with access to a large market and potential investors.

Underlying macroeconomic factors: The growth of the Traditional Capital Raising market in Ireland can be attributed to several underlying macroeconomic factors. The Irish economy has been performing well in recent years, with strong GDP growth and low unemployment rates. This has created a favorable environment for businesses and investors, leading to increased capital raising activity. Furthermore, Ireland's position as a global hub for technology and innovation has attracted a significant amount of foreign investment. This has resulted in a vibrant startup ecosystem and an increased demand for capital to fuel growth and expansion. In conclusion, the Traditional Capital Raising market in Ireland is experiencing significant growth due to customer preferences for stable and traditional investment options, such as IPOs and debt issuance. The increasing number of IPOs and the popularity of debt issuance are key trends in the market. Ireland's favorable tax environment, business-friendly regulations, and strong macroeconomic factors contribute to the growth of the capital raising 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.