Venture Debt - Bulgaria | Statista Market Forecast

The country of Bulgaria is expected to see the Total Capital Raised in the Venture Debt market market reach US$1.10m in 2024.
Traditional Venture Debt is the dominant player in the Bulgarian market, with a projected market volume of US$1.10m in 2024.
When compared globally, the United States will lead in Capital Raised, with US$22.4bn in 2024.
Bulgaria's Venture Debt market is gaining traction among startups seeking non-dilutive financing options for growth and expansion.

Definition:

The Venture Debt market refers to a form of equity and debt financing combination, which is used to finance early stage and growth stage capital-backed companies. Besides equity funding rounds, business can seek venture debt that minimizes ownership dilution and governance requirements to increase the cash runway to reach the next milestone or even provide a cushion for delays.

Structure:

The market consists of two segments:
- The Traditional Venture Debt market refers to a form of debt financing that is often provided to venture-backed companies to either buy new equipment, meet a deficiency of short-term capital, or support expansion plans.
- The Growth Venture Debt market refers to a form of debt financing that is often structured with warrants or options, which provides a rapid development stage in which businesses can support their long-term oriented growth plans.
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 Wells Fargo and Hercules Capital.

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Venture Capital
Venture Debt funds are sponsors by governments

The Venture Debt market in Bulgaria has been steadily developing over the past few years, driven by customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors.

Customer preferences: Bulgarian entrepreneurs and startups have shown a growing interest in Venture Debt as a financing option. This preference can be attributed to the flexibility it offers, allowing companies to access capital without diluting their ownership. Additionally, Venture Debt provides an alternative to traditional bank loans, which may be harder to secure for early-stage companies without significant collateral or proven track records.

Trends in the market: One of the key trends in the Venture Debt market in Bulgaria is the increasing number of local and international investors entering the market. This influx of capital has led to greater availability of Venture Debt financing options for Bulgarian startups and has contributed to the overall growth of the market. Additionally, there has been a rise in the number of specialized Venture Debt providers, offering tailored financing solutions to meet the unique needs of startups in Bulgaria.

Local special circumstances: Bulgaria has a vibrant startup ecosystem, with a growing number of innovative companies emerging in various sectors such as technology, e-commerce, and fintech. This has created a favorable environment for Venture Debt, as startups seek capital to fuel their growth and expansion plans. Furthermore, the government has implemented initiatives to support entrepreneurship and innovation, providing additional incentives for startups to explore alternative financing options like Venture Debt.

Underlying macroeconomic factors: The Venture Debt market in Bulgaria has also been influenced by macroeconomic factors. The country has experienced steady economic growth, with a stable political environment and favorable business conditions. This has attracted both local and foreign investors, who see Bulgaria as an attractive market for investment. Additionally, the low interest rate environment globally has made Venture Debt an appealing option for investors seeking higher returns, further contributing to the growth of the market. In conclusion, the Venture Debt market in Bulgaria is developing due to customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors. With a growing interest in alternative financing options, an increasing number of investors, a vibrant startup ecosystem, and favorable macroeconomic conditions, the Venture Debt market in Bulgaria is poised for further growth in the coming years.

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.