Traditional Capital Raising - Sweden

The Total Capital Raised in the Traditional Capital Raising market market in Sweden is expected to reach US$619.50m by 2024.
Venture Capital is set to lead the market with a projected volume of US$422.50m in 2024.
When compared globally, the United States is anticipated to generate the most Capital Raised, reaching US$159.0bn by 2024.
In Sweden, traditional capital raising through IPOs and private placements remains a preferred method for companies seeking long-term financing in the capital raising market.

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 Sweden has experienced significant growth in recent years, driven by several key factors.

Customer preferences: Swedish investors have shown a strong preference for traditional capital raising methods, such as initial public offerings (IPOs) and private placements. This is due to the perceived stability and transparency of these methods, as well as the potential for high returns. Additionally, Swedish investors tend to be risk-averse and value long-term investments that align with their values and beliefs.

Trends in the market: One major trend in the Traditional Capital Raising market in Sweden is the increasing popularity of IPOs. Swedish companies are increasingly choosing to go public in order to raise capital for expansion and growth. This trend is driven by a combination of factors, including the strong performance of the Swedish economy, the availability of skilled labor, and the country's favorable business environment. Additionally, the Swedish stock market has seen strong performance in recent years, which has further incentivized companies to go public. Another trend in the market is the rise of private placements. Swedish companies are increasingly turning to private investors, such as venture capital firms and private equity funds, to raise capital. This trend is driven by the availability of capital from these sources, as well as the desire of companies to maintain control and flexibility over their operations.

Local special circumstances: Sweden has a well-developed financial market, with a strong regulatory framework and a high level of investor protection. This has created a favorable environment for traditional capital raising methods, as investors have confidence in the transparency and integrity of the market. Additionally, Sweden has a strong culture of entrepreneurship and innovation, which has contributed to the growth of the Traditional Capital Raising market.

Underlying macroeconomic factors: The growth of the Traditional Capital Raising market in Sweden is also supported by underlying macroeconomic factors. Sweden has a stable and prosperous economy, with low inflation, low unemployment, and strong GDP growth. This creates a favorable environment for companies to raise capital, as investors have confidence in the stability and growth potential of the market. Additionally, Sweden has a highly educated workforce and a strong technology sector, which attracts both domestic and international investors. In conclusion, the Traditional Capital Raising market in Sweden is experiencing significant growth, driven by customer preferences for traditional methods, such as IPOs and private placements. This growth is supported by trends such as the increasing popularity of IPOs and the rise of private placements. Sweden's favorable business environment, strong regulatory framework, and stable 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.