Market Insights Financial Capital Raising

Traditional Capital Raising - Montenegro

Montenegro

The country in Montenegro is expected to see the Total Capital Raised in the Traditional Capital Raising market market reach US$45.97m by 2024.
Within this market, Venture Capital is set to lead with a projected market volume of US$45.47m in 2024.
When compared globally, the United States is anticipated to generate the highest amount of Capital Raised, with US$159,000.0m expected in 2024.
Montenegro's traditional capital raising market is experiencing a shift towards private placements, offering tailored investment opportunities to local high-net-worth individuals.

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

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Analyst Opinion

The Traditional Capital Raising market in Montenegro has been experiencing significant growth in recent years.

Customer preferences: Investors in Montenegro have shown a strong preference for traditional capital raising methods such as initial public offerings (IPOs) and debt issuance. This is due to the perceived stability and long-term returns associated with these traditional methods. Additionally, many investors in Montenegro prefer to invest in local companies, as they believe this will contribute to the development of the domestic economy.

Trends in the market: One of the key trends in the traditional capital raising market in Montenegro is the increasing number of IPOs. This trend can be attributed to the growing number of successful companies in the country that are looking to raise capital to fund their expansion plans. The IPO market in Montenegro has also been boosted by the government's efforts to attract foreign investors through privatization initiatives. Another trend in the market is the rising demand for debt financing. Montenegrin companies are increasingly turning to debt issuance as a way to finance their operations and growth. This trend can be attributed to the low interest rate environment and the availability of financing options from both domestic and international lenders.

Local special circumstances: Montenegro's small size and relatively underdeveloped financial markets present unique challenges and opportunities for the traditional capital raising market. The limited number of companies listed on the local stock exchange and the relatively low liquidity of the market make it more difficult for investors to find suitable investment opportunities. However, this also means that there is significant potential for growth in the market as more companies seek to raise capital and attract investors.

Underlying macroeconomic factors: Several macroeconomic factors have contributed to the growth of the traditional capital raising market in Montenegro. The country's stable political environment and commitment to economic reforms have attracted foreign investors and increased confidence in the local market. Additionally, Montenegro's strong economic growth and favorable business climate have made it an attractive destination for both domestic and international investors. In conclusion, the traditional capital raising market in Montenegro is experiencing significant growth due to customer preferences for traditional methods, such as IPOs and debt issuance. The market is also influenced by trends such as an increasing number of IPOs and rising demand for debt financing. Special circumstances in Montenegro, such as the small size and underdeveloped financial markets, present both challenges and opportunities for the market. Overall, the growth of the traditional capital raising market in Montenegro is supported by underlying macroeconomic factors such as the stable political environment and strong economic growth.

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.