Traditional Capital Raising - Ukraine

The country in Ukraine is expected to see the Total Capital Raised in the Traditional Capital Raising market market reach US$341.20m in 2024.
Venture Capital is set to dominate the market with a projected market volume of US$328.70m in 2024.
On a global scale, the United States is anticipated to generate the most Capital Raised, with US$159.0bn in 2024.
The traditional capital raising market in Ukraine is experiencing a resurgence, with a growing number of local businesses turning to established methods to secure funding.

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 Ukraine is experiencing significant growth and development in recent years.

Customer preferences: Ukrainian investors are increasingly turning to traditional capital raising methods to finance their business ventures. This is driven by a desire for stability and security, as well as the potential for higher returns compared to other investment options. Additionally, the traditional capital raising market provides investors with the opportunity to support local businesses and contribute to the country's economic growth.

Trends in the market: One of the key trends in the traditional capital raising market in Ukraine is the growing popularity of initial public offerings (IPOs). Ukrainian companies are increasingly choosing to go public as a means of raising capital, attracting both domestic and international investors. This trend is driven by the improving economic conditions in Ukraine, as well as the government's efforts to create a more favorable business environment. Another trend in the market is the increasing participation of foreign investors. Ukraine's strategic location and potential for economic growth make it an attractive destination for foreign capital. Foreign investors are particularly interested in sectors such as technology, agriculture, and renewable energy, which offer high growth potential. This influx of foreign capital is driving the development of the traditional capital raising market in Ukraine.

Local special circumstances: Ukraine's transition from a centrally planned economy to a market-based economy has created unique challenges and opportunities in the traditional capital raising market. The country's political and economic instability in the past has made investors cautious, but recent reforms and improvements in the business environment have helped to restore confidence. Additionally, Ukraine's large population and untapped market potential make it an attractive destination for businesses and investors alike.

Underlying macroeconomic factors: Several macroeconomic factors are contributing to the development of the traditional capital raising market in Ukraine. The country's GDP growth rate has been steadily increasing, driven by a combination of domestic consumption and exports. This economic growth creates opportunities for businesses to expand and raise capital to fund their growth initiatives. Furthermore, the government's commitment to economic reforms and attracting foreign investment has been instrumental in driving the development of the traditional capital raising market. Reforms such as deregulation, tax incentives, and improvements in the legal framework have made it easier for businesses to access capital and attract investors. In conclusion, the traditional capital raising market in Ukraine is experiencing significant growth and development. Customer preferences for stability, security, and higher returns are driving the demand for traditional capital raising methods. The increasing popularity of IPOs and the participation of foreign investors are key trends in the market. Ukraine's unique circumstances, such as its transition to a market-based economy and improving business environment, are contributing to the development of the market. Additionally, underlying macroeconomic factors such as GDP growth and government reforms are creating opportunities for businesses to raise capital and attract investors.

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.