Traditional Capital Raising - United States

United States

Total Capital Raised in the Traditional Capital Raising market market is expected to reach US$168.30bn in 2025.
Venture Capital leads the market with a projected market volume of US$140.50bn in 2025.
When compared globally, the United States will generate the most Capital Raised ( US$168.30bn in 2025).
In the United States, the trend towards traditional capital raising methods like IPOs is resurging due to market stability and investor confidence.

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

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Analyst Opinion

The Traditional Capital Raising Market in the United States is currently facing a moderate decline, influenced by factors such as fluctuating investor confidence, evolving economic conditions, and increased competition from alternative financing options, which impact overall funding dynamics.

Customer preferences: Investors are increasingly favoring sustainable and socially responsible investment opportunities, reflecting a broader cultural shift towards environmental consciousness and ethical considerations. This trend is particularly pronounced among younger demographics, who prioritize companies with strong ESG (Environmental, Social, and Governance) practices. Additionally, the rise of technology-driven platforms has made it easier for individuals to engage in crowdfunding and peer-to-peer lending, reshaping traditional funding dynamics and appealing to those seeking more transparent investment options.

Trends in the market: In the United States, the Traditional Capital Raising Market is experiencing a notable shift towards sustainable investment strategies, as investors increasingly seek opportunities that align with their values. This trend is particularly evident in the growing emphasis on ESG criteria, influencing capital allocation decisions. Additionally, the integration of technology in fundraising is reshaping traditional processes, with platforms facilitating direct connections between investors and companies. This evolution not only enhances transparency but also invites a more diverse group of investors, fostering a more inclusive investment landscape that could redefine stakeholder engagement and capital flow dynamics.

Local special circumstances: In the United States, the Traditional Capital Raising Market is uniquely influenced by a combination of regulatory frameworks, cultural diversity, and technological innovation. The SEC's stringent regulations promote transparency and protect investors, fostering confidence in capital markets. Culturally, there is a strong emphasis on philanthropy and social responsibility, driving demand for sustainable investments. Furthermore, the rise of fintech platforms democratizes access to capital, enabling startups and diverse entrepreneurs to connect with a broader range of investors, thus reshaping investment dynamics.

Underlying macroeconomic factors: The Traditional Capital Raising Market in the United States is significantly shaped by macroeconomic factors such as economic stability, interest rates, and investor sentiment. A robust national economy, characterized by low unemployment and steady GDP growth, enhances investor confidence, leading to increased participation in capital markets. Conversely, fluctuating interest rates can impact borrowing costs for businesses, influencing their capital-raising strategies. Additionally, fiscal policies, including tax incentives for investments and support for small businesses, further stimulate the market. Global economic trends, such as shifts in trade policies and international investment flows, also play a crucial role in shaping market dynamics and investor behavior.

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.