Traditional Capital Raising - Kazakhstan

The country of Kazakhstan is projected to see a Total Capital Raised in the Traditional Capital Raising market market reaching US$23.72m in 2024.
Venture Capital is set to dominate the market with a projected market volume of US$22.89m in 2024.
When compared globally, the United States is expected to generate the most Capital Raised, amounting to US$159.0bn in 2024.
Kazakhstan's Traditional Capital Raising market is experiencing a resurgence in interest from local investors seeking to support domestic businesses.

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 Kazakhstan has been experiencing significant growth in recent years. Customer preferences have shifted towards more traditional methods of raising capital, such as bank loans and equity financing, as they offer stability and security.

This trend is driven by several factors, including the local special circumstances and underlying macroeconomic factors in the country. Customer preferences in the Traditional Capital Raising market in Kazakhstan have been influenced by a desire for stability and security. Many investors and businesses in the country are cautious and prefer traditional methods of raising capital that have a proven track record.

Bank loans, for example, offer a predictable repayment schedule and lower risk compared to other forms of financing. Similarly, equity financing allows businesses to raise capital without incurring debt, providing a sense of security for both investors and entrepreneurs. Trends in the Traditional Capital Raising market in Kazakhstan also reflect the local special circumstances of the country.

Kazakhstan has a well-established banking sector, which has traditionally been the main source of capital for businesses. This has created a culture of reliance on banks for financing, leading to a preference for traditional capital raising methods. Additionally, the government has implemented policies to support the growth of the banking sector, further reinforcing this trend.

Underlying macroeconomic factors have also contributed to the development of the Traditional Capital Raising market in Kazakhstan. The country has experienced stable economic growth in recent years, with a focus on diversifying the economy and attracting foreign investment. This has created a favorable environment for traditional capital raising methods, as they are seen as reliable and trustworthy by both domestic and international investors.

Additionally, the government has implemented reforms to improve the business environment and promote entrepreneurship, further driving demand for traditional capital raising options. In conclusion, the Traditional Capital Raising market in Kazakhstan is developing in response to customer preferences for stability and security. This trend is influenced by the local special circumstances of the country, including a reliance on the banking sector and government policies supporting traditional capital raising methods.

The underlying macroeconomic factors, such as stable economic growth and business-friendly reforms, also contribute to the growth of the market. Overall, the Traditional Capital Raising market in Kazakhstan is expected to continue to expand as businesses and investors seek reliable and secure financing options.

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.