Market Insights Financial Capital Raising

Traditional Capital Raising - Laos

Laos

The country in Laos is expected to see Total Capital Raised in the Traditional Capital Raising market market reach US$65.9m by 2024.
Venture Capital is set to dominate this market with a projected volume of US$53.9m in 2024.
When compared globally, the United States is forecasted to generate the most Capital Raised at US$296,400.0m in 2024.
In Laos, the Traditional Capital Raising market is seeing a shift towards more innovative investment structures and increased foreign investor interest.

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

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Analyst Opinion

The Traditional Capital Raising market in Laos has been experiencing significant growth in recent years.

Customer preferences: Laos has witnessed a surge in demand for traditional capital raising methods due to the preferences of local businesses and investors. Many businesses in Laos still rely on traditional financing methods such as bank loans and equity investments. This preference can be attributed to a number of factors, including the familiarity and trust associated with traditional financing options, as well as the limited availability and awareness of alternative capital raising methods.

Trends in the market: One of the key trends in the traditional capital raising market in Laos is the increasing participation of foreign investors. The country's growing economy and favorable investment climate have attracted foreign businesses and individuals looking to invest in Laos. These investors often prefer traditional capital raising methods as they are more familiar with them and perceive them to be less risky compared to alternative options. Another trend in the market is the rising popularity of crowdfunding platforms. While still in its early stages, crowdfunding has gained traction in Laos as a means of raising capital for small and medium-sized enterprises (SMEs). This trend can be attributed to the increasing use of technology and the internet, which has made it easier for businesses to reach a larger pool of potential investors.

Local special circumstances: One of the unique characteristics of the traditional capital raising market in Laos is the dominance of family-owned businesses. Family businesses play a crucial role in the country's economy, and they often rely on traditional financing methods to fund their operations and expansion plans. The close-knit nature of these businesses and the trust between family members make traditional capital raising methods more appealing and practical.

Underlying macroeconomic factors: The development of the traditional capital raising market in Laos is also influenced by several macroeconomic factors. The country's stable economic growth, favorable business environment, and government policies promoting investment have created a conducive environment for traditional capital raising. Additionally, the limited availability and awareness of alternative capital raising methods, such as venture capital and private equity, further contribute to the dominance of traditional financing options in the market. In conclusion, the traditional capital raising market in Laos is experiencing growth due to the preferences of local businesses and investors, the increasing participation of foreign investors, the rising popularity of crowdfunding platforms, the dominance of family-owned businesses, and the favorable macroeconomic factors.

Methodology

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.