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Traditional Capital Raising - Taiwan

Taiwan
  • The country in Taiwan is expected to see the Total Capital Raised in the Traditional Capital Raising market market reach US$151.80m by 2024.
  • Within this market, Venture Capital is set to lead with a projected market volume of US$139.50m in 2024.
  • When compared globally, the United States will generate the most Capital Raised, with US$159.0bn expected in 2024.
  • Traditional capital raising in Taiwan's market is increasingly leveraging local networks and government support for sustainable growth and market expansion.

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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In-Scope

  • Venture Capital
  • Venture Debt

Out-Of-Scope

  • Traditional bank loans
  • Digital capital raising
Traditional Capital Raising: market data & analysis - Cover

Market Insight report

Traditional Capital Raising: market data & analysis

Study Details

    Capital Raised

    Notes: Data shown is using current exchange rates. Data shown reflects market impacts of Russia-Ukraine war and the bankruptcy of the Silicon Valley Bank.

    Most recent update: Mar 2024

    Source: Statista Market Insights

    Notes: Data was converted from local currencies using average exchange rates of the respective year.

    Most recent update: Oct 2024

    Source: Statista Market Insights

    Average Deal Size

    Notes: Data was converted from local currencies using average exchange rates of the respective year.

    Most recent update: Oct 2024

    Source: Statista Market Insights

    Global Comparison

    Notes: Data was converted from local currencies using average exchange rates of the respective year.

    Most recent update: Oct 2024

    Source: Statista Market Insights

    Number of Deals

    Notes: Data was converted from local currencies using average exchange rates of the respective year.

    Most recent update: Oct 2024

    Source: Statista Market Insights

    Analyst Opinion

    The Traditional Capital Raising market in Taiwan has experienced significant growth in recent years, driven by customer preferences, market trends, local special circumstances, and underlying macroeconomic factors.

    Customer preferences:
    Taiwanese investors have traditionally favored traditional capital raising methods, such as bank loans and initial public offerings (IPOs), due to their familiarity and perceived stability. However, there has been a shift in customer preferences towards alternative capital raising methods, such as crowdfunding and venture capital investments. This shift can be attributed to the increasing popularity of technology startups and the desire for higher returns on investments.

    Trends in the market:
    One of the key trends in the Traditional Capital Raising market in Taiwan is the rise of crowdfunding platforms. These platforms provide individuals and businesses with the opportunity to raise funds from a large number of investors, often with lower barriers to entry compared to traditional capital raising methods. This trend has been fueled by the growing interest in supporting local entrepreneurs and the ease of accessing investment opportunities through online platforms. Another trend in the market is the growing number of venture capital investments. Taiwanese startups have been attracting significant attention from both domestic and international venture capital firms, leading to a surge in funding for innovative and high-growth companies. This trend is driven by the government's efforts to promote entrepreneurship and innovation, as well as the availability of a skilled workforce and a supportive business environment.

    Local special circumstances:
    Taiwan has a well-developed financial sector, with a strong banking system and a vibrant stock market. This provides local businesses with a range of options for raising capital, including bank loans, bond issuances, and IPOs. The presence of these traditional capital raising methods has contributed to the preference for such methods among Taiwanese investors. Furthermore, Taiwan has a strong culture of entrepreneurship and a high level of technological innovation. This has created a favorable environment for startups and has attracted the attention of both local and international investors. The government has also implemented policies to support entrepreneurship and innovation, such as tax incentives and funding programs, which has further fueled the growth of the Traditional Capital Raising market in Taiwan.

    Underlying macroeconomic factors:
    The strong economic growth and stability in Taiwan have also played a role in the development of the Traditional Capital Raising market. The country has a well-diversified economy, with a strong manufacturing sector and a growing services sector. This has created opportunities for businesses to expand and raise capital to support their growth plans. Additionally, Taiwan has a high savings rate, which provides a pool of capital that can be invested in the Traditional Capital Raising market. The low interest rate environment in the country has also made traditional capital raising methods, such as bank loans, more attractive to borrowers. In conclusion, the Traditional Capital Raising market in Taiwan is experiencing growth and development due to changing customer preferences, market trends, local special circumstances, and underlying macroeconomic factors. The rise of crowdfunding platforms and venture capital investments, along with the government's support for entrepreneurship and innovation, have contributed to the changing landscape of capital raising in Taiwan. Furthermore, the country's strong financial sector, culture of entrepreneurship, and stable economy have created a favorable environment for businesses to raise capital and pursue growth opportunities.

    Methodology

    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.

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    Traditional Capital Raising: market data & analysis - BackgroundTraditional Capital Raising: market data & analysis - Cover

    Key Market Indicators

    Notes: Based on data from IMF, World Bank, UN and Eurostat

    Most recent update: Sep 2024

    Source: Statista Market Insights

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    Venture capital worldwide - statistics & facts

    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.
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