Market Insights Financial Capital Raising Traditional Capital Raising

Venture Capital - Tunisia

Tunisia

The country in Tunisia is projected to reach a Total Capital Raised of US$152.2m in the Venture Capital market market by 2024.
Later Stage leads the market with a projected market volume of US$125.2m in 2024.
In global comparison, the United States is expected to generate the most Capital Raised with US$264,500.0m in 2024.
Tunisia's Venture Capital market is gaining momentum, with a surge in investments in tech startups driving innovation and economic growth.

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

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Analyst Opinion

The Venture Capital market in Tunisia has been steadily developing in recent years, driven by a combination of customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors.

Customer preferences: Tunisian entrepreneurs and startups are increasingly seeking venture capital funding to fuel their growth and innovation. This is driven by the desire to access capital without the burden of traditional bank loans, as well as the opportunity to benefit from the expertise and networks that venture capital firms bring to the table. Additionally, entrepreneurs are attracted to the potential for rapid growth and scalability that venture capital funding can provide.

Trends in the market: One of the key trends in the Tunisian venture capital market is the emergence of specialized funds focused on specific sectors or industries. These funds are able to provide targeted support and expertise to startups operating in niche markets, increasing their chances of success. Another trend is the growing interest from international venture capital firms in investing in Tunisian startups, attracted by the country's young and tech-savvy population, as well as its strategic location as a gateway to the African market.

Local special circumstances: Tunisia has a vibrant startup ecosystem, with a number of incubators, accelerators, and entrepreneurship support organizations. These entities play a crucial role in nurturing and developing startups, providing them with mentorship, training, and access to networks. The government has also implemented policies and initiatives to support entrepreneurship and innovation, creating a favorable environment for startups to thrive.

Underlying macroeconomic factors: Tunisia has experienced steady economic growth in recent years, with a focus on diversifying the economy and promoting innovation. The government has implemented reforms to improve the business environment and attract foreign investment, including venture capital. Additionally, the country has a young and well-educated population, which provides a strong talent pool for startups. The availability of skilled human capital, combined with the government's support for entrepreneurship, has created a conducive environment for venture capital to flourish. In conclusion, the Venture Capital market in Tunisia is developing due to customer preferences for alternative funding options, the emergence of specialized funds, the presence of a supportive startup ecosystem, and favorable macroeconomic factors. As Tunisia continues to prioritize innovation and entrepreneurship, the venture capital market is expected to further grow and contribute to the country's economic development.

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.