Market Insights Financial Capital Raising

Traditional Capital Raising - Latvia

Latvia

The Total Capital Raised in Latvia's Traditional Capital Raising market market is expected to reach US$10.6m in 2024.
Venture Capital is set to dominate the market with a projected volume of US$7.2m in 2024.
When compared globally, the United States is forecasted to generate the most Capital Raised (US$296,400.0m in 2024).
Latvia's Traditional Capital Raising market is seeing a resurgence in interest from local investors seeking stable returns amidst global economic uncertainty.

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

Market

Region

Region comparison

Currency

Analyst Opinion

The Traditional Capital Raising market in Latvia has been experiencing significant growth and development in recent years.

Customer preferences: Latvian investors have shown a strong preference for traditional capital raising methods, such as initial public offerings (IPOs) and private placements. This is due to the perceived stability and potential for high returns offered by these traditional methods. Additionally, Latvian investors tend to have a conservative approach to investing and prefer to invest in established companies with a proven track record.

Trends in the market: One major trend in the Traditional Capital Raising market in Latvia is the increasing number of IPOs. This can be attributed to the growing number of successful Latvian companies that are looking to raise capital to fund their expansion plans. These companies see the IPO market as an attractive option to access a larger pool of investors and raise substantial funds. Another trend in the market is the rise of private placements. Private placements have become popular among Latvian companies that are looking to raise capital without going through the lengthy and expensive process of an IPO. Private placements offer a more streamlined and cost-effective way for companies to raise funds, and they also allow companies to maintain more control over their operations.

Local special circumstances: Latvia has a small and relatively underdeveloped capital market compared to other European countries. This has created a unique set of circumstances that have influenced the development of the Traditional Capital Raising market. The limited number of investment opportunities in the local market has led to a high demand for IPOs and private placements, as investors seek to diversify their portfolios and access new investment opportunities.

Underlying macroeconomic factors: The growth and development of the Traditional Capital Raising market in Latvia can be attributed to several underlying macroeconomic factors. Firstly, Latvia has experienced a period of strong economic growth in recent years, which has created a favorable environment for companies looking to raise capital. The country's stable political and economic climate has also attracted foreign investors, further driving the growth of the capital raising market. Additionally, the government of Latvia has implemented several initiatives to support the development of the capital market. These include the introduction of new regulations and incentives to encourage companies to go public and raise capital. These initiatives have helped to create a more favorable environment for capital raising activities and have contributed to the growth of the market. In conclusion, the Traditional Capital Raising market in Latvia is experiencing significant growth and development, driven by customer preferences for traditional capital raising methods, the increasing number of IPOs and private placements, the unique circumstances of the local market, and the underlying 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.