Market Insights Financial Capital Raising

Traditional Capital Raising - Luxembourg

Luxembourg

The country in Luxembourg is expected to see Total Capital Raised in the Traditional Capital Raising market market reach US$27.17m by 2024.
Within this market, Venture Capital is set to lead with a projected market volume of US$24.30m in the same year.
When comparing globally, the United States is forecasted to generate the highest amount of Capital Raised, with US$159,000.0m anticipated in 2024.
Luxembourg's capital raising market sees a growing trend in traditional methods, favored for their stability and reliability in the volatile financial landscape.

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

Market

Region

Region comparison

Currency

Analyst Opinion

Luxembourg, known for its strong financial sector and favorable business environment, has been witnessing significant developments in its Traditional Capital Raising market. Customer preferences in Luxembourg are driven by the country's status as a leading global financial center, attracting a diverse range of investors and businesses.

International investors are drawn to Luxembourg due to its political stability, strong regulatory framework, and expertise in fund administration. Additionally, the country's favorable tax regime, including double taxation agreements with numerous countries, further enhances its appeal as a capital raising destination. Trends in the market indicate a growing interest in alternative investment vehicles, such as private equity and venture capital funds.

This can be attributed to several factors, including the increasing demand for innovative and high-growth companies, as well as the potential for attractive returns. Luxembourg's well-established fund industry and expertise in fund structuring and administration make it an ideal location for such investment vehicles. Furthermore, the rise of sustainable finance is another notable trend in Luxembourg's Traditional Capital Raising market.

As investors increasingly prioritize environmental, social, and governance (ESG) factors in their investment decisions, there has been a surge in demand for sustainable investment products. Luxembourg has positioned itself as a leading hub for sustainable finance, offering a wide range of ESG-focused funds and investment solutions. The country's commitment to sustainability, coupled with its expertise in fund management, has attracted both domestic and international investors seeking to align their investments with their values.

Local special circumstances in Luxembourg contribute to the development of the Traditional Capital Raising market. The country's strong legal and regulatory framework, along with its well-established financial infrastructure, provide a solid foundation for capital raising activities. Additionally, Luxembourg's multilingual workforce and international business environment facilitate cross-border transactions and attract a diverse range of market participants.

Underlying macroeconomic factors also play a role in shaping the Traditional Capital Raising market in Luxembourg. The country's stable economic growth, low inflation, and favorable interest rate environment create a conducive environment for capital raising activities. Moreover, Luxembourg's strategic location at the heart of Europe and its strong connections to global markets make it an attractive destination for international investors seeking access to the European market.

In conclusion, Luxembourg's Traditional Capital Raising market is experiencing significant developments driven by customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors. The country's strong financial sector, favorable business environment, and expertise in fund administration position it as a leading destination for capital raising activities. As the market continues to evolve, Luxembourg is well-positioned to maintain its status as a global financial hub.

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.