Venture Debt - Poland | Statista Market Forecast

Poland is expected to see the Total Capital Raised in the Venture Debt market market reach US$27.69m by 2024.
Traditional Venture Debt is set to lead the market with a projected market volume of US$27.15m in 2024.
When compared globally, the United States will generate the most Capital Raised, amounting to US$22.4bn in 2024.
Poland's Venture Debt market is gaining traction among startups seeking non-dilutive financing options to fuel growth in the Capital Raising 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 Poland has been experiencing significant growth in recent years.

Customer preferences: Polish entrepreneurs and startups have shown a strong preference for Venture Debt as a financing option. This is driven by several factors, including the desire to maintain control and ownership of their businesses, as well as the flexibility that Venture Debt offers compared to traditional equity financing. Additionally, the relatively lower cost of capital associated with Venture Debt makes it an attractive option for entrepreneurs looking to fund their growth.

Trends in the market: One of the key trends in the Venture Debt market in Poland is the increasing number of venture capital-backed startups seeking debt financing. This trend is driven by the growing number of startups in the country and the need for additional capital to fuel their expansion. Venture Debt allows these startups to access the funds they need without diluting their equity ownership. Another trend in the market is the emergence of specialized Venture Debt providers in Poland. These providers understand the unique needs of startups and offer tailored financing solutions that are more aligned with the growth trajectory of these companies. This specialization has contributed to the increased availability of Venture Debt in the market and has made it a more viable option for entrepreneurs.

Local special circumstances: Poland's strong entrepreneurial ecosystem and supportive government policies have also contributed to the growth of the Venture Debt market. The country has seen a rise in the number of incubators, accelerators, and venture capital firms, which has created a favorable environment for startups to thrive. Additionally, the Polish government has introduced initiatives and programs to support entrepreneurship and innovation, further fueling the demand for Venture Debt financing.

Underlying macroeconomic factors: The strong economic growth in Poland has also played a role in the development of the Venture Debt market. The country has experienced stable economic growth in recent years, which has created a favorable environment for startups to scale and attract investment. Additionally, the low interest rate environment in Poland has made debt financing more affordable for startups, further contributing to the growth of the Venture Debt market. In conclusion, the Venture Debt market in Poland is experiencing significant growth due to customer preferences for flexible financing options, the increasing number of venture capital-backed startups seeking debt financing, the emergence of specialized Venture Debt providers, the strong entrepreneurial ecosystem and supportive government policies, and the underlying macroeconomic factors such as strong economic growth and low interest rates.

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.