Traditional Capital Raising - Togo

The country of Togo is expected to witness a Total Capital Raised in the Traditional Capital Raising market market reaching US$11.12m in 2024.
Venture Capital is set to dominate the market with a projected market volume of US$9.24m in the same year.
When compared globally, the United States is forecasted to generate the most Capital Raised amounting to US$159.0bn in 2024.
Traditional capital raising in Togo's market is seeing a resurgence, with local businesses turning to established methods to secure funding for expansion and growth.

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 Togo is experiencing significant growth and development.

Customer preferences: In Togo, there is a growing preference among businesses and entrepreneurs to raise capital through traditional methods such as bank loans, personal savings, and family and friends. This is due to the fact that these methods are perceived as more reliable and secure compared to other alternative forms of capital raising, such as crowdfunding or venture capital. Additionally, traditional capital raising methods allow businesses to maintain full control over their operations and decision-making processes.

Trends in the market: One major trend in the Traditional Capital Raising market in Togo is the increasing availability of bank loans for small and medium-sized enterprises (SMEs). Banks in Togo have recognized the potential of SMEs as drivers of economic growth and development, and have therefore started offering more favorable loan terms and conditions to attract these businesses. This trend has resulted in an increase in the number of SMEs seeking bank loans to finance their expansion plans and operational needs. Another trend in the market is the rise of microfinance institutions (MFIs) as an alternative source of capital for small businesses and individuals. MFIs in Togo have gained popularity due to their flexible lending terms and their focus on financial inclusion. These institutions provide small loans to individuals and businesses that may not have access to traditional banking services. As a result, many entrepreneurs and small business owners are turning to MFIs to raise capital for their ventures.

Local special circumstances: Togo is a country with a predominantly cash-based economy, and this has a significant impact on the Traditional Capital Raising market. Many businesses and individuals in Togo prefer to deal in cash rather than relying on digital transactions. This preference for cash transactions can make it more challenging for businesses to access traditional sources of capital, as banks and other financial institutions may require documentation and proof of financial transactions.

Underlying macroeconomic factors: The development of the Traditional Capital Raising market in Togo can be attributed to several underlying macroeconomic factors. One such factor is the overall economic growth and stability in the country. Togo has experienced steady economic growth in recent years, which has resulted in increased business activity and investment opportunities. This has created a demand for capital among businesses looking to expand and take advantage of these opportunities. Another factor is the government's efforts to promote entrepreneurship and support small businesses. The government of Togo has implemented various initiatives and programs aimed at fostering entrepreneurship and providing financial support to small businesses. These initiatives include the establishment of business incubators, the provision of training and mentorship programs, and the creation of funding schemes specifically targeted at small businesses. These efforts have contributed to the growth of the Traditional Capital Raising market in Togo, as more entrepreneurs and small business owners are now able to access the capital they need to start and grow their ventures. In conclusion, the Traditional Capital Raising market in Togo is developing rapidly, driven by customer preferences for reliable and secure capital raising methods, the availability of bank loans for SMEs, the rise of microfinance institutions, the preference for cash transactions, and the underlying macroeconomic factors of economic growth and government support for entrepreneurship.

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.