Capital Raising - Worldwide | Statista Market Forecast

The total capital raised in the Capital Raising market market worldwide is projected to reach US$390.50bn in 2024.
Traditional Capital Raising is expected to dominate the market with a projected market volume of US$322.90bn in 2024.
When compared globally, the United States is anticipated to generate the most capital raised, with US$195.4bn in 2024.
Worldwide, the trend in the Capital Raising market shows a surge in innovative crowdfunding platforms, revolutionizing access to capital for entrepreneurs across the globe.

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 Worldwide is experiencing significant growth and development, driven by various factors such as customer preferences, market trends, local special circumstances, and underlying macroeconomic factors.

Customer preferences: In today's globalized economy, customers are increasingly seeking opportunities to invest their capital in order to generate returns. With low interest rates and a volatile stock market, many investors are turning to the Capital Raising market as an alternative investment avenue. Additionally, the rise of crowdfunding platforms has made it easier for individuals to participate in capital raising activities, further fueling the market's growth.

Trends in the market: One of the key trends in the Capital Raising market is the increasing popularity of Initial Public Offerings (IPOs). Companies are choosing to go public in order to raise capital and expand their operations. This trend is particularly evident in emerging markets, where companies are looking to tap into the potential of a growing middle class and the increasing demand for goods and services. Another trend in the market is the rise of private equity and venture capital investments. These types of investments provide companies with the necessary capital to fund their growth and innovation initiatives. In addition, private equity and venture capital firms are actively seeking opportunities in emerging markets, where the potential for high returns is often greater than in developed markets.

Local special circumstances: The Capital Raising market is also influenced by local special circumstances in different countries and regions. For example, in countries with a strong entrepreneurial culture, such as the United States, there is a high demand for capital raising activities. This is driven by the presence of a large number of start-ups and innovative companies that require funding to bring their ideas to market. In contrast, in countries with more restrictive regulations and a less developed financial infrastructure, the Capital Raising market may be less developed. However, these countries are increasingly recognizing the importance of capital raising activities for economic growth and are taking steps to create a more conducive environment for such activities.

Underlying macroeconomic factors: The development of the Capital Raising market is also influenced by underlying macroeconomic factors. For example, in countries with strong economic growth and stable political environments, there is often a greater demand for capital raising activities. This is because companies are more likely to invest in expansion and innovation when the economic conditions are favorable. Additionally, the availability of capital and the cost of borrowing also play a role in the development of the market. When capital is readily available and borrowing costs are low, companies are more likely to engage in capital raising activities. Conversely, when capital is scarce and borrowing costs are high, companies may be more hesitant to raise capital. In conclusion, the Capital Raising market in Worldwide is experiencing significant growth and development, driven by customer preferences, market trends, local special circumstances, and underlying macroeconomic factors. As investors seek alternative investment avenues and companies look to raise capital for expansion and innovation, the market is expected to continue to grow 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.