Venture Debt - Sweden | Statista Market Forecast

The country of Sweden is expected to see the Total Capital Raised in the Venture Debt market market reach US$197.00m in 2024.
Traditional Venture Debt is set to dominate the market with a projected market volume of US$171.10m in 2024.
When compared globally, the United States will generate the most Capital Raised, with US$22.4bn in 2024.
Sweden's growing tech scene is driving an increase in venture debt deals, making it a hotspot for capital raising in the Nordic region.

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 Sweden is experiencing steady growth due to customer preferences for alternative financing options, trends in the market, local special circumstances, and underlying macroeconomic factors. Customer preferences in Sweden are shifting towards alternative financing options like venture debt.

This is driven by the desire for flexibility and lower dilution compared to equity financing. Startups in Sweden are increasingly looking for ways to fund their growth without giving up a significant portion of their equity. Venture debt offers an attractive solution by providing capital in the form of loans, allowing startups to retain ownership and control while still accessing the funds they need to expand.

Trends in the market also contribute to the development of the Venture Debt market in Sweden. The startup ecosystem in the country is thriving, with a growing number of innovative companies emerging in sectors such as technology, healthcare, and clean energy. These startups often require additional capital to fuel their growth, and venture debt provides a viable option.

Furthermore, venture capital investors are becoming more comfortable with venture debt as a complementary financing tool, leading to increased demand for such services in Sweden. Local special circumstances further support the growth of the Venture Debt market in Sweden. The country has a well-established and supportive ecosystem for startups, with a strong network of incubators, accelerators, and venture capital firms.

This infrastructure provides startups with the necessary resources and support to succeed, making Sweden an attractive market for venture debt providers. Additionally, the Swedish government has implemented policies and initiatives to foster innovation and entrepreneurship, creating a favorable environment for startups and alternative financing options. Underlying macroeconomic factors also play a role in the development of the Venture Debt market in Sweden.

The country has a stable and robust economy, with low interest rates and a strong financial sector. This provides a conducive environment for venture debt providers to operate and attract investors. Furthermore, Sweden has a highly skilled workforce and a culture of innovation, which contributes to the growth of the startup ecosystem and the demand for alternative financing options.

In conclusion, the Venture Debt market in Sweden is growing due to customer preferences for alternative financing options, trends in the market, local special circumstances, and underlying macroeconomic factors. Startups in Sweden are increasingly turning to venture debt as a flexible and less dilutive way to fund their growth. The supportive ecosystem for startups, favorable government policies, and strong macroeconomic fundamentals further contribute to the development of the Venture Debt market in Sweden.

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.