Market Insights Financial Capital Raising Traditional Capital Raising

Venture Capital - Mongolia

Mongolia

The country in Mongolia is projected to reach a Total Capital Raised of US$166.3m in the Venture Capital market market by 2024.
Early Stage is set to dominate the market with a projected market volume of US$83.1m in 2024.
When compared globally, the United States is expected to generate the most Capital Raised, with US$264,500.0m in 2024.
Mongolia's Venture Capital market is gaining traction, with a focus on tech startups driving innovation and attracting foreign investment.

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

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Analyst Opinion

The Venture Capital market in Mongolia has been experiencing significant growth in recent years, driven by customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors. Customer preferences in Mongolia have shifted towards entrepreneurship and innovation, with many individuals and businesses seeking funding to support their ideas and projects.

This has created a demand for venture capital financing, as entrepreneurs look for investors who can provide not only capital but also expertise and guidance. In terms of trends in the market, there has been an increase in the number of venture capital firms and funds operating in Mongolia. This can be attributed to the growing interest in the country's startup ecosystem and the potential for high returns on investment.

These firms and funds are actively seeking opportunities to invest in promising startups and innovative businesses, fueling the growth of the venture capital market. Local special circumstances in Mongolia have also contributed to the development of the venture capital market. The government has implemented various initiatives and policies to support entrepreneurship and innovation, including the establishment of startup incubators and accelerators.

These initiatives provide a supportive environment for startups and attract both local and foreign investors. Underlying macroeconomic factors have played a role in the growth of the venture capital market in Mongolia. The country has experienced stable economic growth in recent years, driven by sectors such as mining, construction, and services.

This has created a favorable investment climate and increased investor confidence, attracting venture capital funds and investors to the market. Additionally, Mongolia has a young and dynamic population, with a high level of education and technological literacy. This has led to the emergence of a vibrant startup ecosystem, with entrepreneurs and innovators across various industries.

The availability of skilled talent and the potential for disruptive innovations have further attracted venture capital investors to the market. In conclusion, the Venture Capital market in Mongolia has been developing rapidly due to customer preferences for entrepreneurship and innovation, trends in the market such as the increase in venture capital firms, local special circumstances such as government support for startups, and underlying macroeconomic factors including stable economic growth and a young and dynamic population. These factors have created a conducive environment for the growth of the venture capital market in Mongolia, providing opportunities for both investors and entrepreneurs.

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.