Market Insights Financial Capital Raising Traditional Capital Raising

Venture Debt - Spain

Spain

Spain is expected to see the Total Capital Raised in the Venture Debt market market reach US$114.3m in 2024.
Traditional Venture Debt is set to dominate the market in Spain with a projected market volume of US$89.8m in the same year.
When compared globally, the United States is forecasted to generate the most Capital Raised (US$31,850.0m in 2024).
Spain's venture debt market is gaining traction among startups, offering an alternative to traditional equity financing in the capital-raising landscape.

Key regions: Brazil, Germany, United Kingdom, Singapore, China

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Analyst Opinion

The Venture Debt market in Spain has been steadily growing over the past few years, driven by several key factors.

Customer preferences: Spanish entrepreneurs and startups have shown a growing interest in Venture Debt as a financing option. This is due to the fact that Venture Debt offers a flexible and non-dilutive form of capital, allowing companies to fund their growth without giving up equity. Additionally, Venture Debt can be used to bridge the gap between equity rounds, providing startups with the necessary capital to continue scaling their operations.

Trends in the market: One of the key trends in the Venture Debt market in Spain is the increasing number of venture capital-backed companies opting for this form of financing. As the startup ecosystem in Spain continues to mature, more companies are looking for alternative funding options to support their growth. Venture Debt provides them with an attractive solution, allowing them to access capital quickly and efficiently. Another trend in the market is the growing participation of traditional banks and financial institutions in the Venture Debt space. These institutions have recognized the potential of this market and are actively seeking to provide debt financing to startups. This trend is further fueled by the low interest rate environment in Spain, which makes debt financing an attractive option for both startups and lenders.

Local special circumstances: Spain has a vibrant and dynamic startup ecosystem, with Barcelona and Madrid emerging as key hubs for entrepreneurship and innovation. This has created a favorable environment for the development of the Venture Debt market, as startups in these cities are actively seeking financing options to support their growth. Furthermore, the Spanish government has implemented several initiatives to support the startup ecosystem, including tax incentives and grants for innovative companies. These initiatives have helped to create a supportive environment for startups and have contributed to the growth of the Venture Debt market.

Underlying macroeconomic factors: The growth of the Venture Debt market in Spain is also influenced by underlying macroeconomic factors. The Spanish economy has been experiencing a period of steady growth, with low interest rates and favorable credit conditions. This has created a conducive environment for startups to access debt financing and has encouraged lenders to provide capital to the Venture Debt market. In conclusion, the Venture Debt market in Spain is experiencing steady growth, driven by customer preferences for non-dilutive financing options, the increasing participation of traditional banks and financial institutions, the vibrant startup ecosystem, and favorable macroeconomic conditions. As the startup ecosystem in Spain continues to mature, we can expect the Venture Debt market to further expand 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.