Traditional Capital Raising - Portugal

The Total Capital Raised in Portugal's Traditional Capital Raising market market is forecasted to reach US$32.63m in 2024.
Venture Capital leads the market with a projected market volume of US$19.66m in 2024.
When compared globally, the United States is anticipated to generate the most Capital Raised (US$159.0bn in 2024).
Portugal's traditional capital raising market is seeing a resurgence in interest from local investors seeking opportunities in established industries.

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 Portugal has been experiencing significant growth in recent years, driven by several key factors.

Customer preferences: Portuguese investors have shown a growing interest in traditional capital raising methods, such as initial public offerings (IPOs) and debt issuance. This can be attributed to a desire for diversification and the potential for higher returns compared to other investment options. Additionally, Portuguese companies have been increasingly turning to traditional capital raising methods to fund their expansion plans and take advantage of favorable market conditions.

Trends in the market: One of the main trends in the Traditional Capital Raising market in Portugal is the increasing number of IPOs. This can be attributed to the strong performance of the Portuguese stock market, which has attracted both domestic and international investors. Companies in sectors such as technology, renewable energy, and tourism have been particularly active in going public to raise capital for further growth and innovation. Another trend in the market is the growing demand for debt issuance. Portuguese companies have been taking advantage of low interest rates to issue bonds and raise funds for various purposes, including refinancing existing debt, funding acquisitions, and investing in new projects. This trend has been supported by a favorable regulatory environment and increased investor appetite for fixed income securities.

Local special circumstances: Portugal's economic recovery following the global financial crisis has played a significant role in the development of the Traditional Capital Raising market. The country has implemented structural reforms and fiscal consolidation measures, which have improved investor confidence and created a more stable business environment. Additionally, Portugal's membership in the European Union and the Eurozone has provided access to a larger market and increased opportunities for cross-border capital raising.

Underlying macroeconomic factors: Several underlying macroeconomic factors have contributed to the growth of the Traditional Capital Raising market in Portugal. Firstly, the country's strong economic performance and positive GDP growth have created a favorable investment climate. This has attracted both domestic and foreign investors, who are seeking opportunities for capital appreciation and income generation. Secondly, Portugal's low interest rate environment has made traditional capital raising methods more attractive. With interest rates at historically low levels, investors are looking for alternative investment options that offer higher returns. This has increased demand for IPOs and debt issuance, as these instruments have the potential to generate higher yields compared to traditional fixed income securities. Lastly, Portugal's stable political environment and commitment to economic reforms have instilled confidence in investors. The government's efforts to reduce bureaucracy, improve the business climate, and attract foreign investment have created a positive perception of the country's economic prospects. This has further fueled the growth of the Traditional Capital Raising market in Portugal. In conclusion, the Traditional Capital Raising market in Portugal is experiencing significant growth due to customer preferences for diversification and higher returns, as well as favorable market conditions and macroeconomic factors. The increasing number of IPOs and debt issuances, along with Portugal's economic recovery and stable political environment, are driving 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.