Market Insights Financial Capital Raising

Traditional Capital Raising - Nepal

Nepal

The country in Nepal is projected to see Total Capital Raised in the Traditional Capital Raising market market reach US$45.58m in 2024.
Venture Capital is set to dominate the market with a projected market volume of US$44.69m in 2024.
When compared globally, the United States is expected to generate the most Capital Raised (US$159,000.0m in 2024).
In Nepal, Traditional Capital Raising remains a preferred method for businesses seeking funding due to cultural emphasis on personal relationships in finance.

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

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Analyst Opinion

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

Customer preferences: Nepalese investors have shown a growing interest in traditional capital raising methods such as initial public offerings (IPOs) and private placements. This can be attributed to the desire for diversification and the potential for higher returns compared to traditional savings accounts or fixed deposits. Additionally, the younger generation in Nepal is becoming more financially literate and is actively seeking investment opportunities to grow their wealth.

Trends in the market: One of the key trends in the traditional capital raising market in Nepal is the increasing number of IPOs. This can be attributed to the government's efforts to promote the growth of the capital market in the country. The Securities Board of Nepal has implemented various measures to simplify the IPO process and make it more attractive for companies to go public. As a result, more companies are choosing to raise capital through IPOs, providing investors with a wider range of investment opportunities. Another trend in the market is the rise of private placements. Private placements offer a more flexible and efficient way for companies to raise capital compared to traditional bank loans. This trend can be attributed to the increasing number of startups and small businesses in Nepal that are looking for funding to fuel their growth. Private placements provide these companies with access to capital from investors who are willing to take on higher risks in exchange for potentially higher returns.

Local special circumstances: Nepal is a landlocked country with limited access to international markets. This has created a unique market environment where traditional capital raising methods play a crucial role in financing business activities. The lack of alternative financing options has led to a higher demand for IPOs and private placements as companies seek capital to expand their operations.

Underlying macroeconomic factors: The stable economic growth in Nepal has created a favorable environment for traditional capital raising. The country has experienced steady GDP growth over the past few years, which has increased investor confidence and attracted more companies to go public. Additionally, the government's focus on infrastructure development and the promotion of entrepreneurship has created new investment opportunities, further driving the growth of the traditional capital raising market. In conclusion, the traditional capital raising market in Nepal is developing rapidly due to customer preferences for diversification and higher returns, as well as the government's efforts to promote the growth of the capital market. The increasing number of IPOs and private placements reflects the demand for capital from companies looking to expand their operations. The unique market environment in Nepal, coupled with the stable macroeconomic factors, has created a favorable landscape for traditional capital raising methods to thrive.

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.