Market Insights Financial Capital Raising

Traditional Capital Raising - Mongolia

Mongolia

The country in Mongolia is projected to reach a Total Capital Raised in the Traditional Capital Raising market market of US$133.30m by 2024.
Venture Capital is set to dominate the market with a projected market volume of US$132.10m in the same year.
In global comparison, the United States is expected to generate the most Capital Raised, with US$159,000.0m in 2024.
Mongolia's Traditional Capital Raising market is seeing a resurgence in interest from local investors seeking to support domestic businesses.

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

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Analyst Opinion

The Traditional Capital Raising market in Mongolia has been steadily developing in recent years, driven by various factors such as customer preferences, market trends, local special circumstances, and underlying macroeconomic factors. Customer preferences in Mongolia have played a significant role in the development of the Traditional Capital Raising market.

Mongolian investors have shown a strong preference for traditional capital raising methods, such as bank loans and equity financing, due to their familiarity and perceived reliability. This preference is influenced by cultural factors and the historical reliance on traditional financial institutions for capital needs. Additionally, the risk-averse nature of Mongolian investors has also contributed to the popularity of traditional capital raising methods, as they are perceived to offer a lower level of risk compared to alternative options.

Trends in the market have also shaped the development of the Traditional Capital Raising market in Mongolia. The limited availability of venture capital and private equity funding in the country has led to a greater reliance on traditional capital raising methods. This trend is further reinforced by the relatively small size of the Mongolian market, which makes it less attractive for international investors seeking higher returns.

As a result, local businesses and entrepreneurs have turned to traditional capital raising methods to meet their financing needs. Local special circumstances in Mongolia have also influenced the development of the Traditional Capital Raising market. The country's unique geographical and economic characteristics, such as its vast mineral resources and nomadic herding traditions, have created specific financing requirements for businesses operating in these sectors.

Traditional capital raising methods, such as project financing and asset-backed lending, have proven to be well-suited to meet the needs of these industries, leading to their continued popularity. Underlying macroeconomic factors have also played a role in the development of the Traditional Capital Raising market in Mongolia. The country's economic growth and stability have provided a favorable environment for businesses to raise capital through traditional methods.

Additionally, the government's efforts to promote economic diversification and attract foreign investment have further supported the development of the Traditional Capital Raising market. In conclusion, the Traditional Capital Raising market in Mongolia is developing due to customer preferences, market trends, local special circumstances, and underlying macroeconomic factors. The preference for traditional capital raising methods, limited availability of alternative funding sources, unique financing requirements in specific sectors, and favorable macroeconomic conditions have all contributed to the growth of the market.

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.