Venture Debt - Iraq | Statista Market Forecast

Total Capital Raised in the Venture Debt market market in Iraq is forecasted to reach US$849.10k by 2024.
Traditional Venture Debt holds the dominant position in the market, with a projected market volume of US$849.10k in 2024.
When compared on a global scale, the United States is expected to generate the highest amount of Capital Raised, with US$22.4bn in 2024.
Iraq's growing tech scene is driving increased demand for venture debt, attracting international investors seeking opportunities in the country's burgeoning startup ecosystem.

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 Iraq is experiencing significant development and growth. Customer preferences are shifting towards alternative financing options, and this trend is driving the expansion of the Venture Debt market.

Additionally, local special circumstances and underlying macroeconomic factors are contributing to the growth of this market. Customer preferences in Iraq are changing, with a growing demand for alternative financing options. Traditional bank loans are often difficult to obtain due to stringent lending requirements and limited access to credit.

As a result, entrepreneurs and small businesses are seeking alternative sources of funding, such as Venture Debt. This type of financing allows companies to raise capital without diluting equity, making it an attractive option for businesses looking to expand and grow. The Venture Debt market in Iraq is also benefiting from global and regional trends.

Worldwide, there has been a shift towards Venture Debt as a viable financing option for startups and high-growth companies. This trend is driven by the increasing availability of venture capital and the desire to minimize equity dilution. As a result, Venture Debt has gained traction as a complementary source of funding, allowing companies to leverage their existing equity and extend their runway.

Local special circumstances in Iraq further contribute to the development of the Venture Debt market. The country has a young and dynamic entrepreneurial ecosystem, with a growing number of startups and small businesses. These companies often face challenges in accessing traditional financing, making Venture Debt an attractive alternative.

Additionally, Iraq's oil-based economy is susceptible to fluctuations in global oil prices, making it important for businesses to diversify their sources of funding. Venture Debt provides a flexible and non-dilutive financing option that can help companies weather economic uncertainties. Underlying macroeconomic factors also play a role in the growth of the Venture Debt market in Iraq.

The country is experiencing economic growth and diversification, with a focus on sectors such as technology, renewable energy, and infrastructure development. These industries often require significant upfront capital investments, and Venture Debt can help bridge the funding gap. Furthermore, the government is implementing reforms to improve the ease of doing business and attract foreign investment, creating a favorable environment for startups and small businesses.

In conclusion, the Venture Debt market in Iraq is developing due to changing customer preferences, global and regional trends, local special circumstances, and underlying macroeconomic factors. As entrepreneurs and small businesses seek alternative financing options, Venture Debt provides a flexible and non-dilutive solution. The growth of this market is supported by a dynamic entrepreneurial ecosystem, economic diversification efforts, and government reforms.

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.