Traditional Capital Raising - Malta

The country of Malta is expected to see Total Capital Raised in the Traditional Capital Raising market market reach US$37.44m in 2024.
Venture Capital is set to dominate the market with a projected market volume of US$37.00m in the same year.
When compared globally, the United States is forecasted to generate the most Capital Raised with US$159.0bn in 2024.
Malta's traditional capital raising market is experiencing a resurgence in interest from local businesses seeking growth opportunities through established financial channels.

Definition:

The Traditional Capital Raising market relates to venture investment in startups and emerging companies that are not yet generating positive or significant revenue but have high growth potential. The capital is mostly raised from venture financial institutions, and minorly from banks.

Structure:

The market consists of two segments:
- The Venture Capital market refers to private equity funding that is offered to startups and emerging companies.
- The Venture Debt market refers to the combination between equity and debt financing, which is used to finance the early stage and growth stage capital-backed companies.
The market data comprises of the amount of capital raised, number of deals, and average deal size.

Additional information:

Although the Traditional Capital Raising market is highly competitive in investment opportunities due to the rapidly high growth rate of startups and emerging companies, it has become more popular for these businesses who cannot get traditional loans from banks, to develop and grow their businesses or projects.
Key players in this market are companies such as Sequoia Capital and Hercules Capital.

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Venture Capital
Venture Debt

Traditional bank loans
Digital capital raising

The Traditional Capital Raising market in Malta has been steadily developing in recent years, driven by various factors such as customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors. Customer preferences in the Traditional Capital Raising market in Malta have been shifting towards more diverse investment options.

Investors are increasingly looking for alternative ways to raise capital, moving away from traditional methods such as bank loans and seeking out opportunities in crowdfunding, peer-to-peer lending, and venture capital. This shift can be attributed to a desire for higher returns, greater control over investments, and the potential for supporting innovative startups and projects. Trends in the market have also contributed to the development of the Traditional Capital Raising market in Malta.

The emergence of fintech companies and platforms has made it easier for businesses and individuals to access capital through online platforms. These platforms provide a streamlined and efficient process for raising funds, reducing the reliance on traditional financial institutions. Additionally, the rise of impact investing and socially responsible investing has created new avenues for capital raising, as investors increasingly seek out opportunities that align with their values.

Local special circumstances in Malta have further fueled the growth of the Traditional Capital Raising market. Malta has positioned itself as a hub for fintech and blockchain companies, attracting startups and entrepreneurs from around the world. The government has implemented favorable regulations and incentives to encourage the growth of these industries, creating a conducive environment for capital raising activities.

This has led to an influx of investment opportunities and a vibrant ecosystem for traditional capital raising methods. Underlying macroeconomic factors have also played a role in the development of the Traditional Capital Raising market in Malta. The country has experienced steady economic growth in recent years, with a strong focus on sectors such as finance, technology, and tourism.

This growth has created a favorable environment for capital raising, as businesses and individuals seek to capitalize on the opportunities presented by a thriving economy. Additionally, Malta's membership in the European Union provides access to a larger market and potential investors, further supporting the growth of the capital raising market. In conclusion, the Traditional Capital Raising market in Malta is developing due to changing customer preferences, emerging trends in the market, local special circumstances, and underlying macroeconomic factors.

As investors seek more diverse investment options, the market has responded with innovative platforms and opportunities. The favorable regulatory environment and strong economic growth in Malta have further fueled the growth of the capital raising market, making it an attractive destination for businesses and individuals looking to raise funds.

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.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

Venture capital is the term used to call the financial resources provided by investors to startup firms and small businesses that show potential for long-term growth. It has become a very important source of capital for entrepreneurs, who often have problems with financing their needs through risk-averse banks. Venture capital investments incorporate a high level of risk as only some of the VC-backed companies develop into successful and highly profitable businesses. In 2020, the leading venture capital backed company worldwide was the Manbang Group, which based in Nanjing, China.