The Traditional Capital Raising market in South America has been experiencing significant growth in recent years, driven by several key factors.
Customer preferences: South American investors 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 long-term growth potential of these investment options. Additionally, local investors have a strong preference for investing in companies that are based in their own region, as they feel more familiar with the local market dynamics and have a greater sense of trust in these companies.
Trends in the market: One of the key trends in the South American Traditional Capital Raising market is the increasing number of IPOs. Companies in various industries, including technology, energy, and finance, are choosing to go public to raise capital for expansion and to provide liquidity to existing shareholders. This trend is driven by the region's improving economic conditions, as well as the growing appetite for investment opportunities among local and international investors. Another trend in the market is the rise of debt issuance. South American companies are increasingly turning to the bond market to raise funds for various purposes, such as refinancing existing debt, funding acquisitions, and financing infrastructure projects. This trend is fueled by the region's low interest rate environment, which makes borrowing more affordable for companies.
Local special circumstances: One of the unique characteristics of the South American Traditional Capital Raising market is the presence of state-owned enterprises (SOEs). These companies, which are often in sectors such as energy, telecommunications, and transportation, play a significant role in the region's economy. They often raise capital through IPOs and debt issuance to fund their operations and investments. The performance of these SOEs can have a significant impact on the overall market sentiment and investor confidence in the region.
Underlying macroeconomic factors: The growth of the Traditional Capital Raising market in South America is closely tied to the region's macroeconomic conditions. Factors such as GDP growth, inflation rates, and interest rates can influence investor sentiment and the willingness of companies to raise capital. For example, a strong and stable economy can attract more investors and encourage companies to go public or issue debt. On the other hand, economic instability or high inflation rates can dampen investor confidence and make companies more cautious about raising capital. In conclusion, the Traditional Capital Raising market in South America is experiencing growth due to customer preferences for stable and long-term investment options, the increasing number of IPOs and debt issuance, the presence of state-owned enterprises, and the influence of macroeconomic factors. As the region's economy continues to improve and investor confidence remains strong, we can expect the Traditional Capital Raising market in South America to continue developing in the coming years.
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.
Mon - Fri, 9am - 6pm (EST)
Mon - Fri, 9am - 5pm (SGT)
Mon - Fri, 10:00am - 6:00pm (JST)
Mon - Fri, 9:30am - 5pm (GMT)
Mon - Fri, 9am - 6pm (EST)
