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Venture Capital - Dominican Republic

Dominican Republic
  • The Dominican Republic is expected to see Total Capital Raised in the Venture Capital market market reach US$42.84m in 2024.
  • Later Stage leads the market with a projected market volume of US$24.52m in 2024.
  • When compared globally, the United States will generate the most Capital Raised (US$136.6bn in 2024).
  • In the Dominican Republic, the Venture Capital market is burgeoning, attracting more investors seeking opportunities in the country's growing tech and renewable energy sectors.

Definition:

Venture Capital is a form of private equity funding that is offered to startups and emerging companies. Venture Capitalists invest not only money but also their networks and technical and managerial expertise, in exchange for a specified proportion of equity ownership.

Structure:

The market consists of three segments:
- The Seed Stage market refers to capital financing at the earliest phase of a startup's development.
- The Early Stage market refers to capital financing at the next stage after seed stage.
- The Later Stage market refers to capital financing at the expansion stage of businesses.
The market data comprises of the amount of capital raised, number of deals, and average deal size.

Key players in this market are companies such as Sequoia Capital and Accel.

Use the info button next to the boxes for more information on the data displayed.

In-Scope

  • Venture Capital

Out-Of-Scope

  • Venture Debt
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 Venture Capital market in Dominican Republic has been experiencing significant growth in recent years, driven by several factors including customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors. Customer preferences in the Dominican Republic have shifted towards entrepreneurship and innovation, with a growing number of individuals and businesses seeking funding for their ventures.

    This has created a strong demand for venture capital investment, as entrepreneurs look for financial support to bring their ideas to life and scale their businesses. Additionally, there is a growing awareness and understanding of the benefits that venture capital can bring, such as access to expertise, networks, and resources, which further fuels the demand for such funding. Trends in the market indicate that the Dominican Republic is becoming an attractive destination for venture capital investment.

    The country has a vibrant startup ecosystem, with a number of successful startups emerging in various sectors such as technology, healthcare, and renewable energy. This has caught the attention of both local and international venture capital firms, who see the potential for high returns on investment in these fast-growing companies. Furthermore, the government has implemented policies and initiatives to support entrepreneurship and innovation, creating a favorable environment for venture capital investment.

    Local special circumstances also contribute to the development of the Venture Capital market in the Dominican Republic. The country has a large and young population, which provides a pool of talent and potential entrepreneurs. Additionally, the Dominican Republic is strategically located in the Caribbean region, making it an attractive market for investors looking to expand their presence in the region.

    Furthermore, the country has a stable political and economic environment, which instills confidence in investors and reduces the risk associated with venture capital investment. Underlying macroeconomic factors play a crucial role in the development of the Venture Capital market in the Dominican Republic. The country has experienced steady economic growth in recent years, driven by sectors such as tourism, manufacturing, and services.

    This growth has created opportunities for new businesses and startups, which in turn attract venture capital investment. Additionally, the government has implemented policies to promote foreign direct investment and entrepreneurship, further stimulating the venture capital market. In conclusion, the Venture Capital market in the Dominican Republic is developing rapidly, driven by customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors.

    The country's growing startup ecosystem, favorable government policies, and stable economic environment make it an attractive destination for venture capital investment. As the market continues to evolve, it is expected that the Venture Capital industry in the Dominican Republic will continue to thrive, supporting the growth and success of innovative and high-potential businesses in the country.

    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.

    Financial

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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

    Explore more high-quality data on related topic

    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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