Capital Raising - Uganda | Statista Market Forecast

The country in Uganda is projected to see a Total Capital Raised in the Capital Raising market market reaching US$99.91m in 2024.
Traditional Capital Raising is set to dominate the market with a projected market volume of US$98.55m in 2024.
In global comparison, the United States is expected to generate the most Capital Raised (US$195.4bn in 2024).
Uganda's Capital Raising market is witnessing a surge in private equity investments, fueling growth and innovation in the local business landscape.

Definition:

The Capital Raising market refers to the process of raising additional capital to launch, finance, and grow a business or a project. Traditional Bank Loans are not considered in the market.

Structure:

The market consists of two segments:
- The Traditional Capital Raising market refers to traditional venture financial services for startups and emerging companies that do not yet possess a positive track record, but have exceptional growth potential.
- The Digital Capital Raising market refers to digital financial services for business customers and private borrowers.
The market data comprises of the amount of capital raised, number of deals, and average deal size.

Additional information:

Besides Traditional Bank Loans, there are various alternative forms of debt and equity financing that help businesses, especially startups and emerging companies who seek additional funds to support their business' operation and growth. Nowadays, owing to the rapid growth rate of startups and emerging companies, these financial services are more attractive and popular.
Key players in this market are companies such as Squoia Capital, Hercules Capital, and Indiegogo

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Venture Capital
Venture Debt
Digital Capital Raising

Traditional Bank Loans

The Capital Raising market in Uganda 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 Uganda have been shifting towards alternative sources of financing, such as capital raising, due to limited access to traditional banking services. Many individuals and businesses in the country do not have access to formal banking institutions, making it difficult for them to secure loans or other forms of financing. As a result, there has been a growing demand for alternative sources of capital, such as private equity, venture capital, and crowdfunding.

Trends in the market have also contributed to the growth of the Capital Raising market in Uganda. The country has seen an increase in the number of startups and small businesses in recent years, driven by a growing entrepreneurial spirit and supportive government policies. These startups and small businesses often require additional capital to fund their operations and expand their businesses, leading to a greater need for capital raising services.

Furthermore, the rise of technology and digital platforms has made it easier for individuals and businesses in Uganda to access capital raising opportunities. Online crowdfunding platforms, for example, have gained popularity in the country, allowing entrepreneurs to raise funds from a large number of individuals. This has democratized the capital raising process and provided more opportunities for individuals and businesses to secure funding.

Local special circumstances also play a role in the development of the Capital Raising market in Uganda. The country has a young and growing population, which has led to an increase in entrepreneurial activity. Additionally, Uganda has a vibrant informal sector, with many small businesses operating outside of the formal economy.

These businesses often face challenges in accessing traditional financing, making capital raising an attractive option for them. Underlying macroeconomic factors have also contributed to the growth of the Capital Raising market in Uganda. The country has experienced steady economic growth in recent years, which has created a favorable environment for capital raising.

Additionally, the government has implemented policies to promote investment and entrepreneurship, further supporting the development of the capital raising market. In conclusion, the Capital Raising market in Uganda is developing rapidly due to customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors. The shift towards alternative sources of financing, the increase in startups and small businesses, the rise of technology and digital platforms, the young and growing population, and the favorable macroeconomic environment have all contributed to the growth of the market.

As Uganda continues to experience economic growth and foster a supportive environment for entrepreneurship, the Capital Raising market is expected to continue to expand in the coming years.

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.