Traditional Capital Raising - Switzerland

The Total Capital Raised in Switzerland's Traditional Capital Raising market market is expected to reach US$808.30m in 2024.
Venture Capital leads the market with a projected market volume of US$624.20m in 2024.
When compared globally, the United States is set to generate the most Capital Raised (US$159.0bn in 2024).
Switzerland's Traditional Capital Raising market is thriving due to its strong banking sector and investor-friendly regulations attracting global capital.

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 Switzerland is experiencing significant growth and development.

Customer preferences: Swiss 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 perception of these methods as being more secure and reliable compared to alternative forms of capital raising. Swiss investors value stability and long-term growth potential, and they see traditional capital raising as a way to achieve these goals.

Trends in the market: One of the key trends in the Traditional Capital Raising market in Switzerland is the increasing number of IPOs. Swiss companies are realizing the benefits of going public, such as access to a larger pool of capital and increased visibility in the market. This trend is driven by the strong performance of the Swiss economy and the attractiveness of the Swiss stock exchange for both domestic and international investors. Another trend is the growing popularity of private placements. Swiss investors are increasingly looking for opportunities to invest in private companies, as they believe that these investments can offer higher returns compared to public companies. This trend is fueled by the emergence of innovative and disruptive startups in Switzerland, particularly in sectors such as technology and healthcare.

Local special circumstances: Switzerland has a unique business environment that contributes to the growth of the Traditional Capital Raising market. The country has a strong financial sector and a stable political and regulatory framework, which attracts both domestic and international investors. Additionally, Switzerland has a high concentration of high-net-worth individuals and institutional investors who are actively seeking investment opportunities.

Underlying macroeconomic factors: The growth and development of the Traditional Capital Raising market in Switzerland can be attributed to several underlying macroeconomic factors. Firstly, Switzerland has a strong and stable economy, which provides a conducive environment for companies to raise capital. Secondly, the low interest rate environment in Switzerland has made traditional capital raising methods more attractive compared to other investment options. Finally, the Swiss government has implemented policies to support the growth of the capital markets, such as tax incentives for investors and measures to promote entrepreneurship and innovation. In conclusion, the Traditional Capital Raising market in Switzerland is experiencing significant growth and development. Swiss investors have a strong preference for traditional capital raising methods, and there is a growing trend of IPOs and private placements. The unique business environment in Switzerland, along with underlying macroeconomic factors, 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.