Venture Debt - EAEU | Statista Market Forecast

The country in Eurasian Economic Union (EAEU) is projected to reach a Total Capital Raised of US$9.14m in 2024 in the Venture Debt market market.
Traditional Venture Debt is set to dominate the market with a projected market volume of US$5.99m in 2024.
In global comparison, the United States will generate the most Capital Raised (US$22.4bn in 2024).
In the EAEU, Venture Debt in the Capital Raising market is gaining traction among start-ups looking for non-dilutive financing options.

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 EAEU is witnessing significant growth and development due to customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors. Customer preferences in the EAEU region are driving the growth of the Venture Debt market.

Entrepreneurs and startups in this region are increasingly turning to venture debt as a financing option. This is because venture debt offers several advantages over traditional equity financing, such as lower dilution of ownership and greater flexibility in repayment terms. Additionally, venture debt allows entrepreneurs to access capital quickly and efficiently, which is particularly important in the fast-paced startup ecosystem of the EAEU region.

Trends in the market are also contributing to the development of the Venture Debt market in EAEU. The region is experiencing a surge in entrepreneurial activity, with a growing number of startups emerging across various industries. These startups often require capital to fuel their growth and expansion plans, and venture debt provides an attractive financing option.

Furthermore, venture debt providers in the EAEU region are becoming more sophisticated and specialized, offering tailored financing solutions to meet the unique needs of startups. Local special circumstances in the EAEU region are further fueling the growth of the Venture Debt market. The region is home to a young and dynamic population, with a high level of entrepreneurial spirit.

Additionally, governments in the EAEU countries are actively promoting entrepreneurship and innovation through various initiatives and policies. These factors create a conducive environment for the growth of the Venture Debt market, as startups in the region are increasingly seeking alternative financing options to support their growth ambitions. Underlying macroeconomic factors also play a role in the development of the Venture Debt market in the EAEU region.

Economic growth and stability in the region are attracting both domestic and international investors, who are looking to capitalize on the opportunities presented by the growing startup ecosystem. Additionally, low interest rates and favorable lending conditions are making venture debt an attractive financing option for both startups and investors. In conclusion, the Venture Debt market in the EAEU region is experiencing significant growth and development due to customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors.

Entrepreneurs and startups in the region are increasingly turning to venture debt as a financing option, driven by the advantages it offers over traditional equity financing. The surge in entrepreneurial activity, government support for entrepreneurship, and favorable macroeconomic conditions are further fueling the growth of the Venture Debt market in the EAEU region.

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.