Traditional Capital Raising - Pakistan

The country in Pakistan is expected to witness a Total Capital Raised of US$15.24m in 2024 within its Traditional Capital Raising market market.
Venture Capital is set to lead the market with a projected market volume of US$14.60m in the same year.
When compared globally, the United States will generate the highest amount of Capital Raised at US$159.0bn in 2024.
Pakistan's Traditional Capital Raising market is seeing a resurgence in interest from local investors seeking stable and long-term 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 Pakistan is experiencing significant growth and development.

Customer preferences: Investors in Pakistan are increasingly turning to traditional capital raising methods to fund their business ventures. This is primarily due to the stability and reliability associated with these methods. Traditional capital raising allows investors to secure funds from various sources, including banks, financial institutions, and individual investors. This provides them with a diverse range of options to choose from, enabling them to find the most suitable funding solution for their specific needs.

Trends in the market: One of the key trends in the traditional capital raising market in Pakistan is the growing popularity of bank loans. Banks in the country have become more willing to lend to businesses, thanks to improved economic conditions and government initiatives to promote entrepreneurship. This has made it easier for businesses to access the capital they need to grow and expand. Additionally, the rise of online platforms and crowdfunding has also contributed to the growth of the traditional capital raising market in Pakistan. These platforms provide a convenient and accessible way for entrepreneurs to connect with potential investors and secure funding for their projects.

Local special circumstances: Pakistan's traditional capital raising market is also influenced by local special circumstances. One such circumstance is the presence of a large unbanked population. Many individuals and businesses in Pakistan do not have access to formal banking services, which makes traditional capital raising methods even more important. In response to this, microfinance institutions have emerged as key players in the market. These institutions provide small loans to individuals and businesses who would otherwise struggle to secure funding from traditional sources.

Underlying macroeconomic factors: The development of the traditional capital raising market in Pakistan is supported by several underlying macroeconomic factors. One such factor is the country's strong economic growth. Pakistan has experienced steady economic growth in recent years, which has created opportunities for businesses and investors alike. Additionally, the government's focus on promoting entrepreneurship and attracting foreign investment has also contributed to the growth of the traditional capital raising market. These factors have created a favorable environment for businesses to access the capital they need to grow and expand. In conclusion, the Traditional Capital Raising market in Pakistan is experiencing significant growth and development. Customer preferences are shifting towards traditional capital raising methods due to their stability and reliability. The market is witnessing trends such as the popularity of bank loans and the rise of online platforms and crowdfunding. Local special circumstances, such as the presence of a large unbanked population, and underlying macroeconomic factors, including strong economic growth and government initiatives, are further driving the development of the market. Overall, the traditional capital raising market in Pakistan is poised for continued growth and offers promising opportunities for investors and businesses.

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.