Traditional Capital Raising - Romania

The country in Romania is expected to see Total Capital Raised in the Traditional Capital Raising market market reach US$30.44m in 2024.
Venture Capital is set to lead the market with a projected market volume of US$29.22m in 2024.
When compared globally, the United States will generate the most Capital Raised (US$159.0bn in 2024).
In Romania, the trend in Traditional Capital Raising shows a shift towards more diversified investment opportunities for local businesses seeking growth.

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.

Use the info button next to the boxes for more information on the data displayed.

Venture Capital
Venture Debt

Traditional bank loans
Digital capital raising

The Traditional Capital Raising market in Romania has been experiencing significant growth in recent years, driven by a number of factors.

Customer preferences: Investors in Romania have shown a growing interest in traditional capital raising methods, such as initial public offerings (IPOs) and debt issuance. This is due to the perceived stability and transparency of these methods, as well as the potential for higher returns compared to other investment options. Additionally, the availability of a wide range of investment opportunities in the market has also attracted investors looking to diversify their portfolios.

Trends in the market: One of the key trends in the Traditional Capital Raising market in Romania is the increase in IPO activity. Companies in various sectors, including technology, retail, and finance, have chosen to go public in order to raise capital for expansion and growth. This trend is driven by the favorable market conditions, including strong investor demand and positive economic outlook. Additionally, the success of previous IPOs has also encouraged more companies to consider this method of raising capital. Another trend in the market is the rise of debt issuance. Companies in Romania are increasingly turning to debt markets to raise funds for various purposes, such as refinancing existing debt, financing acquisitions, and funding capital expenditure. This trend is fueled by the low interest rate environment, which makes borrowing more affordable for companies. Additionally, the availability of a wide range of debt instruments, such as bonds and commercial paper, has made it easier for companies to access the debt market.

Local special circumstances: One of the unique characteristics of the Traditional Capital Raising market in Romania is the presence of a large number of family-owned businesses. These businesses often have a long history and strong ties to the local community, which can make them attractive investment opportunities for both domestic and international investors. Additionally, family-owned businesses tend to have a more conservative approach to capital raising, which aligns with the preferences of many investors in the market.

Underlying macroeconomic factors: The growth of the Traditional Capital Raising market in Romania is supported by a number of underlying macroeconomic factors. The country has experienced strong economic growth in recent years, driven by factors such as increasing consumer spending, rising exports, and foreign direct investment. This has created a favorable business environment, which has attracted both domestic and international companies to the market. Additionally, the government has implemented a number of reforms aimed at improving the investment climate and attracting foreign capital. In conclusion, the Traditional Capital Raising market in Romania is developing rapidly, driven by customer preferences for traditional capital raising methods, such as IPOs and debt issuance. The market is characterized by increasing IPO activity and the rise of debt issuance. The presence of a large number of family-owned businesses and favorable macroeconomic factors also contribute to the growth 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.