Traditional Capital Raising - Morocco

The Total Capital Raised in the Traditional Capital Raising market market in Morocco is expected to reach US$172.00m in 2024.
Venture Capital stands out as the dominant player in the market with a projected market volume of US$150.10m in 2024.
When compared globally, the United States leads in Capital Raised, with US$159.0bn expected in 2024.
Morocco's traditional capital raising market is seeing a resurgence in interest from local investors due to improved economic stability and regulatory reforms.

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 Morocco is experiencing significant growth and development in recent years.

Customer preferences: Moroccan investors have shown a strong interest in traditional capital raising methods, such as initial public offerings (IPOs) and bond issuances. This is due to the perceived stability and potential returns offered by these investment options. Additionally, Moroccan investors have a preference for investing in local companies, as they are more familiar with the market and have a better understanding of the business environment.

Trends in the market: One of the key trends in the Traditional Capital Raising market in Morocco is the increasing number of IPOs. Moroccan companies are increasingly looking to raise capital through IPOs to fund their expansion plans and take advantage of the favorable market conditions. This trend is driven by the strong performance of the Moroccan economy, which has been growing at a steady pace in recent years. Additionally, the government has implemented several reforms to improve the business environment and attract foreign investment, which has further boosted the IPO market. Another trend in the market is the growing demand for bond issuances. Moroccan companies are increasingly turning to the bond market to raise capital for their projects. This trend is driven by the low interest rate environment, which makes borrowing more affordable for companies. Additionally, the government has been actively promoting the development of the bond market through various initiatives and reforms.

Local special circumstances: Morocco has a well-developed financial sector, which provides a solid foundation for the Traditional Capital Raising market. The country has a strong regulatory framework and a well-functioning stock exchange, which facilitates the listing of companies and the trading of securities. Additionally, the government has implemented several reforms to improve the transparency and efficiency of the capital market, which has further attracted investors and issuers.

Underlying macroeconomic factors: The growth and development of the Traditional Capital Raising market in Morocco can be attributed to several underlying macroeconomic factors. Firstly, the Moroccan economy has been growing at a steady pace in recent years, driven by strong domestic demand and increased investment. This has created a favorable environment for companies to raise capital and expand their operations. Secondly, the government has implemented several reforms to improve the business environment and attract foreign investment. These reforms have included measures to simplify the process of starting a business, protect investors' rights, and enhance the transparency and efficiency of the capital market. These reforms have made Morocco an attractive destination for both domestic and foreign investors. In conclusion, the Traditional Capital Raising market in Morocco is experiencing significant growth and development, driven by customer preferences for stable investment options, the increasing number of IPOs, and the growing demand for bond issuances. The local special circumstances, such as a well-developed financial sector and a favorable regulatory framework, further support the growth of the market. The underlying macroeconomic factors, including the strong performance of the Moroccan economy and the government's reforms, also contribute to the development of the market.

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.