Venture Debt - Greece | Statista Market Forecast

The total capital raised in the Venture Debt market market in Greece is projected to reach US$22.57m in 2024.
Traditional Venture Debt dominates the market in Greece with a projected market volume of US$22.57m in 2024.
In global comparison, most capital raised will be generated in Greece (US$22.4bn in 2024).
In Greece, Venture Debt is gaining traction as a financing alternative for startups amid a challenging economic landscape.

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

Venture Debt market in Greece has been witnessing significant growth in recent years.

Customer preferences: Greek entrepreneurs and startups are increasingly turning towards venture debt as a financing option. This is primarily due to the flexibility it offers compared to traditional forms of financing such as equity financing or bank loans. Venture debt allows startups to raise capital without diluting their ownership stakes, which is particularly attractive for founders who want to retain control over their companies. Additionally, venture debt provides startups with the necessary capital to fuel their growth and expansion plans, without the need to rely solely on equity financing.

Trends in the market: One of the key trends in the Venture Debt market in Greece is the increasing number of venture capital-backed startups opting for venture debt financing. As the startup ecosystem in Greece continues to mature and attract more venture capital investments, startups are looking for alternative financing options to support their growth. Venture debt provides a viable solution by allowing startups to leverage their existing venture capital funding and access additional capital to accelerate their growth plans. Another trend in the market is the growing interest from non-traditional lenders, such as specialized venture debt funds and alternative lenders. These lenders are filling the financing gap left by traditional banks, which have been more cautious in providing loans to startups. The entrance of these new players has increased competition in the market and led to more favorable terms and conditions for startups seeking venture debt financing.

Local special circumstances: Greece has a vibrant startup ecosystem, with a growing number of innovative companies emerging in sectors such as technology, biotechnology, and renewable energy. The Greek government has also implemented various initiatives to support entrepreneurship and attract foreign investments. These factors have created a conducive environment for startups to thrive and seek alternative financing options like venture debt. Additionally, the Greek banking sector has faced challenges in recent years, which has made it difficult for startups to access traditional bank loans. This has further fueled the demand for venture debt financing as startups seek alternative sources of capital to fund their growth plans.

Underlying macroeconomic factors: The Greek economy has been recovering from a prolonged recession, and this has created opportunities for startups to tap into new markets and expand their operations. The improving economic conditions, coupled with the availability of venture capital funding, have contributed to the growth of the Venture Debt market in Greece. Furthermore, low-interest rates in the Eurozone have made it more attractive for lenders to provide venture debt financing, as they can generate higher returns compared to traditional fixed-income investments. This has led to an increase in the availability of venture debt financing options for Greek startups. In conclusion, the Venture Debt market in Greece is experiencing rapid growth due to the preferences of Greek entrepreneurs, the increasing number of venture capital-backed startups, the interest from non-traditional lenders, the local special circumstances, and the underlying macroeconomic factors. This trend is expected to continue as the Greek startup ecosystem continues to mature and attract more investments.

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.