Traditional Capital Raising - Netherlands

The Netherlands is expected to see Total Capital Raised in the Traditional Capital Raising market market reach US$1.90bn by 2024.
Venture Capital is set to dominate the market with a projected market volume of US$1.44bn in the same year.
When compared globally, the United States will lead in Capital Raised, with US$159.0bn expected in 2024.
The Netherlands is experiencing a growing trend in Traditional Capital Raising with a focus on sustainable and socially responsible investment opportunities.

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 Netherlands is experiencing significant development and growth in recent years.

Customer preferences: In the Netherlands, there is a strong preference for traditional capital raising methods, such as initial public offerings (IPOs) and debt issuances. Investors in the country value stability and long-term growth potential, which makes traditional capital raising methods an attractive option. Additionally, Dutch investors have a high level of trust in the local financial system, making them more willing to participate in traditional capital raising activities.

Trends in the market: One of the key trends in the Traditional Capital Raising market in Netherlands is the increasing number of IPOs. Companies in the country are opting to go public to raise capital and expand their operations. This trend is driven by several factors, including the strong performance of the Dutch stock market and the availability of investor appetite for new listings. The Netherlands also has a favorable regulatory environment for IPOs, making it an attractive destination for companies looking to raise capital. Another trend in the market is the growing popularity of debt issuances. Dutch companies are increasingly turning to debt markets to raise capital, as it offers them flexibility and lower costs compared to equity financing. The low interest rate environment in the country has also made debt issuances an attractive option for both companies and investors.

Local special circumstances: The Netherlands has a well-developed financial market, with a strong presence of banks, investment firms, and other financial institutions. This infrastructure supports the growth of the Traditional Capital Raising market in the country, as it provides companies with access to a wide range of investors and financial services. Additionally, the Netherlands has a highly educated and skilled workforce, which attracts companies from various industries to establish their operations in the country. This influx of companies creates a demand for capital, further driving the growth of the Traditional Capital Raising market.

Underlying macroeconomic factors: The strong performance of the Dutch economy is a key underlying factor driving the growth of the Traditional Capital Raising market. The Netherlands has a stable and well-diversified economy, with a strong focus on international trade. This economic stability and growth potential attract both domestic and international investors, creating a favorable environment for traditional capital raising activities. Furthermore, the low interest rate environment in the country has encouraged companies to seek alternative sources of financing, such as debt issuances. The availability of cheap capital has made it easier for companies to access funding, supporting the growth of the Traditional Capital Raising market. In conclusion, the Traditional Capital Raising market in Netherlands is experiencing significant development and growth, driven by customer preferences for stability and long-term growth potential. The increasing number of IPOs and debt issuances, along with the well-developed financial market and strong macroeconomic factors, contribute to the growth of the market in the country.

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.