Traditional Capital Raising - Singapore

The country in Singapore is expected to witness a Total Capital Raised of US$12.87bn in the Traditional Capital Raising market market by 2024.
Within this market, Venture Capital is set to lead with a projected volume of US$10.24bn in 2024.
When compared globally, the United States is forecasted to generate the highest Capital Raised amount of US$159.0bn in 2024.
Traditional Capital Raising in Singapore is experiencing a shift towards digital platforms, attracting a new wave of tech-savvy investors.

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 Singapore has been experiencing significant growth and development in recent years.

Customer preferences: Investors in Singapore have shown a strong preference for traditional capital raising methods, such as initial public offerings (IPOs) and bond issuances. This is due to a combination of factors, including the perceived stability and reliability of these investment options, as well as the potential for higher returns compared to other investment avenues. Additionally, Singapore's well-regulated financial market and strong investor protection laws have also contributed to the popularity of traditional capital raising methods among investors.

Trends in the market: One of the key trends in the Traditional Capital Raising market in Singapore is the increasing number of IPOs. Companies in Singapore are increasingly choosing to go public in order to raise capital for expansion and growth. This trend can be attributed to several factors, including the country's strong economic fundamentals, supportive government policies, and the availability of a well-developed and liquid stock market. Another trend in the market is the growing demand for bond issuances. Singapore has been attracting a significant amount of foreign capital, and companies are taking advantage of this by issuing bonds to fund their operations. The low interest rate environment and the country's stable economic outlook have made Singapore an attractive destination for bond investors.

Local special circumstances: Singapore's status as a global financial hub has played a significant role in the development of the Traditional Capital Raising market. The country's well-established regulatory framework, strong legal system, and political stability have created a favorable environment for investors and issuers alike. Additionally, Singapore's strategic location in Southeast Asia and its strong connectivity with other major financial centers have made it an attractive destination for companies looking to raise capital.

Underlying macroeconomic factors: Several underlying macroeconomic factors have contributed to the development of the Traditional Capital Raising market in Singapore. The country's strong economic growth, stable inflation rate, and low unemployment rate have attracted both domestic and foreign investors. Additionally, Singapore's pro-business environment, favorable tax policies, and robust infrastructure have made it an attractive destination for companies seeking to raise capital. In conclusion, the Traditional Capital Raising market in Singapore has been experiencing significant growth and development due to customer preferences for traditional investment options, such as IPOs and bond issuances. The increasing number of IPOs and the growing demand for bond issuances are key trends in the market. Singapore's status as a global financial hub, its well-established regulatory framework, and favorable macroeconomic factors have also contributed to 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.