Traditional Capital Raising - 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$159.0bn 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.

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 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.

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.