Market Insights Financial Capital Raising

Traditional Capital Raising - Turkey

Turkey

The country in Turkey is projected to reach a Total Capital Raised of US$406.70m in the Traditional Capital Raising market market by 2024.
Within this market, Venture Capital is expected to dominate with a projected market volume of US$324.70m in 2024.
When compared globally, the United States is forecasted to generate the highest amount of Capital Raised, reaching US$159,000.0m in 2024.
Turkey's traditional capital raising market is seeing a shift towards private placements to navigate regulatory challenges and attract local investors.

Key regions: Israel, Brazil, United States, Europe, United Kingdom

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Analyst Opinion

The Traditional Capital Raising market in Turkey has been experiencing significant growth in recent years, driven by several key factors.

Customer preferences: In Turkey, there is a strong preference for traditional methods of capital raising, such as bank loans and public offerings. This is due to a combination of factors, including a lack of familiarity and trust in alternative financing methods, as well as a cultural preference for established and well-known institutions. Additionally, Turkish businesses often have a strong relationship with their local banks, which further encourages the use of traditional capital raising methods.

Trends in the market: One of the key trends in the Traditional Capital Raising market in Turkey is the increasing demand for bank loans. This is driven by the need for capital to fund business expansion, as well as the relatively low interest rates offered by Turkish banks. Additionally, many Turkish businesses have historically relied on bank loans as their primary source of capital, and this trend has continued in recent years. Another trend in the market is the growing interest in public offerings. Turkish companies are increasingly looking to go public in order to raise capital and access a wider pool of investors. This trend is supported by the strong performance of the Turkish stock market in recent years, as well as regulatory changes that have made it easier for companies to list on the stock exchange.

Local special circumstances: One of the unique aspects of the Traditional Capital Raising market in Turkey is the strong role of family-owned businesses. Many Turkish businesses are family-owned and operated, and these companies often rely on traditional capital raising methods to fund their operations and expansion. This is due to a combination of factors, including a preference for maintaining control of the business within the family, as well as a lack of familiarity with alternative financing methods.

Underlying macroeconomic factors: Several macroeconomic factors have contributed to the development of the Traditional Capital Raising market in Turkey. One of the key factors is the country's strong economic growth, which has created a favorable business environment and increased the demand for capital. Additionally, low interest rates and inflation have made borrowing more affordable for Turkish businesses, further driving the growth of the capital raising market. In conclusion, the Traditional Capital Raising market in Turkey is developing due to customer preferences for traditional financing methods, increasing demand for bank loans and public offerings, the strong role of family-owned businesses, and favorable macroeconomic factors. These factors have created a thriving market for traditional capital raising in Turkey, and this trend is likely to continue in the coming years.

Methodology

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on the amount of capital raised, the average 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), and 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. The scenario analysis is based on a Monte Carlo simulation approach generating a range of possible outcomes by creating random variations in forecasted data points, based on assumptions about potential fluctuations in future values. By running numerous simulated scenarios, the model provides an estimated distribution of results, allowing for an analysis of likely ranges and confidence intervals around the forecast.

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.