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Digital Capital Raising - Worldwide

Worldwide
  • The total transaction value in the Digital Capital Raising market market worldwide is expected to hit US$69.81bn by 2025.
  • MarketCrowdlending (Business) is set to lead the market with a projected total transaction value of US$33.70bn in 2025.
  • When looking at a global scale, the United States is anticipated to achieve the highest cumulated transaction value, reaching US$37bn by 2025.
  • Amidst global economic uncertainty, Worldwide sees a surge in digital capital raising, revolutionizing the traditional capital raising market landscape.

Definition:

The Digital Caiptal Raising segment relates to digital financial services for business customers, and private borrowers. Included are Crowdinvesting models, which focus particularly on start-ups exchanging investment for company shares (equity-based), and Crowdfunding solutions, which are used for non-monetary compensation, for example product launches, music, art & film financing (reward-based). The market also includes bank-independent loan allocation for SMEs (Crowdlending) and for personal loans (Marketplace Lending or so-called Peer-to-Peer lending) through private or institutional investors via online platforms. In view of processing complexity, this market is focused on small and medium-sized enterprises (SMEs), freelancers and private persons. Bank financing is not considered, neither are any financial aspects that reach beyond the scope of small and medium-sized enterprises or donation-based Crowdfunding models.

Structure:

Digital Capital Raising consists of Reward-Based Crowdfunding, Crowdinvesting, Crowdlending and Marketplace Lending.

Additional Information:

The market comprises of transaction values, campaigns, average funding per campaign.
In-Scope
  • Alternative financing for SMEs and freelancers
  • Equity-based Crowdfunding (or Crowdinvesting)
  • Reward-based Crowdfunding (or Crowdfunding)
  • Alternative lending for SMEs and freelancers (bank-independent loans)
  • Online marketplaces for personal loan applications and private investors
  • Peer-to-Peer loans with interest rates depending on internal credit scoring of the platform provider
Out-Of-Scope
  • Traditional bank loans
  • Traditional venture capital investments by institutional or private investors
Digital Capital Raising: market data & analysis - Cover

Market Insight report

Digital Capital Raising: market data & analysis
CONTENTBOX_CAPTION_STUDY_DETAILS

    Capital Raised

    NOTES: Data was converted from local currencies using average exchange rates of the respective year.

    MOST_RECENT_UPDATE: Mar 2024

    SOURCE: Statista Market Insights

    NOTES: Data was converted from local currencies using average exchange rates of the respective year.

    MOST_RECENT_UPDATE: Oct 2024

    SOURCE: Statista Market Insights

    MOST_RECENT_UPDATE: Dec 2024

    SOURCE: Statista Market Insights

    Key Players

    MOST_RECENT_UPDATE: Feb 2025

    SOURCE: Statista Market Insights

    Average Deal Size

    MOST_RECENT_UPDATE: Oct 2024

    SOURCE: Statista Market Insights

    Global Comparison

    MOST_RECENT_UPDATE: Oct 2024

    SOURCE: Statista Market Insights

    Number of Deals

    NOTES: Data was converted from local currencies using average exchange rates of the respective year.

    MOST_RECENT_UPDATE: Oct 2024

    SOURCE: Statista Market Insights

    Analyst Opinion

    The Digital Capital Raising Market is witnessing mild growth globally, influenced by factors such as increasing investor interest in alternative funding sources, the rise of innovative platforms, and the growing acceptance of digital investment solutions among businesses and consumers.

    Customer preferences:
    Investors are increasingly gravitating towards digital capital raising platforms, driven by a desire for transparency and accessibility in funding opportunities. This shift is particularly pronounced among younger, tech-savvy demographics who prioritize convenience and speed in their investment decisions. Additionally, the rise of impact investing reflects a cultural shift towards socially responsible funding, as consumers seek to align their financial choices with their values. This evolving landscape underscores the importance of innovative digital solutions that cater to diverse investor preferences.

    Trends in the market:
    Globally, the Digital Capital Raising Market is experiencing a surge in the adoption of crowdfunding platforms, as startups and SMEs leverage these tools to attract a wider range of investors. In North America, there's an increasing focus on equity crowdfunding, enabling companies to raise funds from non-accredited investors. Meanwhile, in Europe, regulatory advancements are facilitating cross-border investments, enhancing market accessibility. In Asia-Pacific, blockchain technology is being integrated into fundraising processes, promoting security and transparency. These trends highlight a shift towards democratized investment opportunities, posing significant implications for traditional fundraising methods and necessitating adaptation among industry stakeholders.

    Local special circumstances:
    In the United States, the Digital Capital Raising Market thrives on a robust entrepreneurial ecosystem and a strong venture capital presence, fostering innovation and attracting diverse investments. In China, government support for fintech and a rapidly expanding digital economy has propelled equity crowdfunding, particularly in tech sectors. The United Kingdom benefits from a well-established regulatory framework that encourages investment while ensuring investor protection, enhancing market trust. In Indonesia, a youthful population and increasing internet access are driving the adoption of crowdfunding platforms, enabling local startups to tap into broader funding sources.

    Underlying macroeconomic factors:
    The Digital Capital Raising Market is significantly shaped by macroeconomic factors such as technological innovation, regulatory frameworks, and economic stability. Countries with supportive regulations and investment in digital infrastructure are witnessing accelerated growth in capital raising activities, as they attract both domestic and foreign investors. Global economic trends, including shifts towards digitalization and remote funding solutions, further influence market dynamics. Additionally, national economic health, characterized by GDP growth and employment rates, plays a crucial role in investor confidence, while fiscal policies that promote entrepreneurship foster a conducive environment for startups to thrive in the digital fundraising landscape.

    Methodology

    Data coverage:

    The data encompasses B2C enterprises. Figures are based on transaction values / revenues / assets under management and user data of relevant services and products offered within the FinTech market.

    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 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, consumer spending, population, internet penetration, smartphone penetration, credit card penetration, and online banking penetration. 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. The scenario analysis is based on a Monte Carlo simulation approach generating a range of possible outcomes by creating random variations in forecasted data points, based on assumptions about potential fluctuations in future values. By running numerous simulated scenarios, the model provides an estimated distribution of results, allowing for an analysis of likely ranges and confidence intervals around the forecast.

    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.

    Finance

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    Digital Capital Raising: market data & analysis - BackgroundDigital Capital Raising: market data & analysis - Cover

    Key Market Indicators

    NOTES: Based on data from IMF, World Bank, UN and Eurostat

    MOST_RECENT_UPDATE: Jan 2025

    SOURCE: Statista Market Insights

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    Crowdfunding - statistics & facts

    Crowdfunding is the collective effort of a large number of individuals who network and pool small amounts of capital to finance a new or existing business venture. Each campaign is set for a goal amount of money and a fixed timeframe, each day is counted down and the money raised will be tallied up for visitors to follow its success. The size of the global crowdfunding market is growing and the largest markets are North America and Asia.
    OUTLOOK_MORE_DATA_ON_TOPIC

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