Market Insights Financial Capital Raising

Traditional Capital Raising - Lebanon

Lebanon

The country in Lebanon is expected to see the Total Capital Raised in the Traditional Capital Raising market market reach US$13.31m by 2024.
Venture Capital is set to dominate this market with a projected volume of US$12.95m in 2024.
When compared globally, the United States is anticipated to lead in Capital Raised, reaching US$159,000.0m by 2024.
Amid Lebanon's economic challenges, traditional capital raising in the capital market has seen a decline in investor confidence and activity.

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

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Analyst Opinion

The Traditional Capital Raising market in Lebanon has been experiencing significant developments in recent years.

Customer preferences: Lebanese investors have shown a growing interest in traditional capital raising methods, such as initial public offerings (IPOs) and private placements. This is partly due to the stability and reliability associated with these traditional methods, as well as the potential for higher returns compared to other investment options. Additionally, Lebanese investors often prefer to invest in local businesses, as they have a better understanding of the market and are more familiar with the companies involved.

Trends in the market: One of the key trends in the Traditional Capital Raising market in Lebanon is the increasing number of IPOs. This can be attributed to several factors, including the growing number of successful Lebanese companies that are looking to expand and raise capital to fund their growth strategies. The government has also been actively encouraging companies to go public, as it sees this as a way to stimulate economic growth and attract foreign investment. Another trend in the market is the rise of private placements. Lebanese companies are increasingly turning to private placements as a way to raise capital without going through the lengthy and costly process of an IPO. Private placements offer companies more flexibility and control over the terms of the investment, and they can be completed more quickly than an IPO.

Local special circumstances: Lebanon has a unique set of circumstances that have influenced the development of the Traditional Capital Raising market. One of the key factors is the country's relatively small size and close-knit business community. This has created a strong network of relationships and trust among investors and companies, which has facilitated the growth of traditional capital raising methods. Additionally, Lebanon has a well-established banking sector that plays a crucial role in the capital raising process. Lebanese banks have a long history of providing financing to businesses, and they have extensive experience in underwriting and facilitating IPOs and private placements. This expertise and infrastructure have helped to support the growth of the Traditional Capital Raising market in Lebanon.

Underlying macroeconomic factors: The development of the Traditional Capital Raising market in Lebanon is also influenced by underlying macroeconomic factors. The country has a relatively stable economy and a strong regulatory framework, which provides a favorable environment for capital raising activities. Additionally, Lebanon has a well-educated workforce and a vibrant entrepreneurial ecosystem, which has contributed to the growth of innovative and successful companies that are seeking capital to fund their expansion plans.

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.