Market Insights Financial Capital Raising Traditional Capital Raising

Venture Debt - Southern Europe

Southern Europe

The country in Southern Europe is projected to reach a Total Capital Raised in the Venture Debt market market of US$457.2m in 2024.
Traditional Venture Debt is set to dominate the market with a projected market volume of US$420.7m in 2024.
When compared globally, the United States will generate the most Capital Raised, with US$31,850.0m in 2024.
In Southern Europe, Venture Debt is gaining traction as a flexible financing option for startups in countries like Spain and Italy.

Key regions: India, United Kingdom, China, Europe, Israel

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Analyst Opinion

The Venture Debt market in Southern Europe has been experiencing significant growth in recent years. This can be attributed to several factors, including customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors.

Customer preferences in Southern Europe have shifted towards alternative financing options, such as Venture Debt. Entrepreneurs and startups in the region are increasingly looking for ways to finance their growth without diluting their ownership stakes. Venture Debt offers a viable solution, allowing companies to access capital while maintaining control over their businesses.

This preference for non-dilutive financing has contributed to the growth of the Venture Debt market in Southern Europe. Trends in the market have also played a role in the development of the Venture Debt market in Southern Europe. The region has seen a rise in the number of startups and entrepreneurial activity, particularly in technology and innovation-driven sectors.

These companies often require additional capital to fuel their growth and expansion plans. Venture Debt provides an attractive option for these companies, as it allows them to access funding quickly and efficiently. Additionally, the increasing presence of venture capital firms and private equity investors in Southern Europe has created a favorable environment for Venture Debt providers.

Local special circumstances have further contributed to the growth of the Venture Debt market in Southern Europe. The region has a rich entrepreneurial culture and a strong focus on innovation. Countries like Spain, Italy, and Portugal have seen a surge in startup activity, fueled by government support and initiatives to promote entrepreneurship.

This vibrant startup ecosystem has created a demand for alternative financing options, including Venture Debt. Underlying macroeconomic factors have also played a role in the development of the Venture Debt market in Southern Europe. The region has experienced economic recovery in recent years, following the global financial crisis.

This has led to increased investor confidence and a favorable investment climate. Additionally, low interest rates and ample liquidity in the financial markets have made it easier for Venture Debt providers to raise capital and offer competitive financing terms to startups and growth-stage companies. In conclusion, the Venture Debt market in Southern Europe has experienced significant growth 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 non-dilutive financing option, while the growing startup ecosystem and favorable investment climate have created a demand for such financing. With these factors in play, the Venture Debt market in Southern Europe is expected to continue its upward trajectory in the coming years.

Methodology

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.