Market Insights Financial Capital Raising

Traditional Capital Raising - Kenya

Kenya

The country in Kenya is expected to see the Total Capital Raised in the Traditional Capital Raising market market reach US$411.20m in 2024.
Venture Capital is set to dominate the market with a projected market volume of US$403.10m in 2024.
When compared globally, the United States will lead in Capital Raised, generating US$159,000.0m in 2024.
Kenya's Traditional Capital Raising market is seeing a rise in demand for local investment opportunities, driven by a growing interest in supporting homegrown businesses.

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

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Analyst Opinion

The Traditional Capital Raising market in Kenya is experiencing significant growth and development.

Customer preferences: One of the key reasons for the growth in the Traditional Capital Raising market in Kenya is the increasing demand from local businesses and entrepreneurs. Many small and medium-sized enterprises (SMEs) in the country are looking for capital to expand their operations, invest in new technologies, and enter new markets. These businesses prefer traditional capital raising methods such as bank loans and equity financing as they offer stability and established processes.

Trends in the market: A major trend in the Traditional Capital Raising market in Kenya is the rise of crowdfunding platforms. These platforms provide a new avenue for entrepreneurs to raise capital by connecting them with a large pool of potential investors. The convenience and accessibility of crowdfunding have made it an attractive option for many Kenyan entrepreneurs, especially those in the technology and innovation sectors. Another trend in the market is the increasing participation of international investors. Kenya's growing economy and favorable investment climate have attracted foreign investors who are keen to tap into the country's potential. These investors are not only providing capital but also bringing in expertise and networks that can help local businesses grow and expand.

Local special circumstances: Kenya's vibrant entrepreneurial ecosystem and supportive government policies have also contributed to the growth of the Traditional Capital Raising market. The government has implemented various initiatives to promote entrepreneurship and innovation, including the establishment of special economic zones and the provision of tax incentives for startups. These measures have created a conducive environment for businesses to thrive and attract capital.

Underlying macroeconomic factors: The growth of the Traditional Capital Raising market in Kenya is also influenced by underlying macroeconomic factors. The country's stable economic growth, low inflation rate, and favorable interest rates have made it an attractive destination for capital investment. Additionally, Kenya's young and growing population, as well as its increasing urbanization, provide a large consumer base and market potential, further attracting investors. In conclusion, the Traditional Capital Raising market in Kenya is experiencing significant growth and development. The increasing demand from local businesses, the rise of crowdfunding platforms, the participation of international investors, and the supportive government policies are all contributing to this growth. Furthermore, Kenya's stable macroeconomic factors and favorable investment climate make it an attractive destination for capital investment.

Methodology

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on the amount of capital raised, the average 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), and 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. The scenario analysis is based on a Monte Carlo simulation approach generating a range of possible outcomes by creating random variations in forecasted data points, based on assumptions about potential fluctuations in future values. By running numerous simulated scenarios, the model provides an estimated distribution of results, allowing for an analysis of likely ranges and confidence intervals around the forecast.

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.