Venture Debt - Malta | Statista Market Forecast

The country in Malta is expected to see a Total Capital Raised in the Venture Debt market market of US$440.80k by 2024.
Traditional Venture Debt is set to maintain dominance in the market, with a projected market volume of US$440.80k in 2024.
When compared globally, the United States will lead in Capital Raised, with US$22.4bn anticipated in 2024.
Malta's Venture Debt market is gaining traction among startups seeking alternative capital raising options in the competitive entrepreneurial 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

The Venture Debt market in Malta has been experiencing steady growth in recent years, driven by customer preferences for alternative financing options and the favorable local special circumstances. Customer preferences in Malta have shifted towards seeking alternative financing options, such as venture debt, as a way to fund their businesses.

This is due to the increasing difficulty in accessing traditional bank loans, which often require collateral or have strict lending criteria. Additionally, entrepreneurs and startups are attracted to the flexibility and lower dilution of equity that venture debt offers compared to equity financing. As a result, there has been a growing demand for venture debt in Malta.

Trends in the Venture Debt market in Malta reflect the global trend of increasing interest in alternative financing options. Venture debt provides an attractive solution for startups and high-growth companies that need additional capital to fund their operations or expansion plans. The availability of venture debt in Malta has increased as more financial institutions and specialized lenders recognize the potential of this market.

This has led to a wider range of options for businesses seeking venture debt, including both local and international lenders. Local special circumstances in Malta have contributed to the development of the Venture Debt market. The country has a vibrant startup ecosystem, with a growing number of innovative companies and entrepreneurs.

The government has also implemented policies and initiatives to support entrepreneurship and attract foreign investment. These factors have created a conducive environment for the growth of the Venture Debt market in Malta. Underlying macroeconomic factors have also played a role in the development of the Venture Debt market in Malta.

The country has experienced steady economic growth in recent years, with a strong focus on sectors such as technology, finance, and tourism. This has attracted both local and foreign investors, who are looking for investment opportunities in high-growth industries. The availability of venture debt provides an additional source of capital for these investors, enabling them to support the growth of businesses in Malta.

In conclusion, the Venture Debt market in Malta is developing due to customer preferences for alternative financing options, the global trend of increasing interest in venture debt, local special circumstances that support entrepreneurship, and underlying macroeconomic factors that drive investment in high-growth industries. As the market continues to evolve, it is expected that the demand for venture debt in Malta will continue to grow.

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.