Market Insights Financial Capital Raising

Digital Capital Raising - Brazil

Brazil

The Digital Capital Raising market market in Brazil is projected to reach a total transaction value of €73.31m in 2024.
MarketMarketplace Lending (Consumer) leads the market with a projected total transaction value of €53.04m in 2024.
When compared globally, the United States achieves the highest cumulated transaction value of €33,380m in 2024.
Brazil is embracing digital platforms for capital raising, revolutionizing the market landscape with increased accessibility and efficiency.

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

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Analyst Opinion

The Digital Capital Raising market in Brazil has been experiencing significant growth in recent years, driven by customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors. Customer preferences in Brazil have shifted towards digital capital raising platforms due to their convenience and accessibility.

Investors are increasingly looking for alternative investment options beyond traditional avenues such as stocks and bonds. Digital capital raising platforms provide a wide range of investment opportunities, including crowdfunding, peer-to-peer lending, and real estate investment trusts. These platforms allow investors to diversify their portfolios and potentially earn higher returns.

Trends in the market also contribute to the development of the Digital Capital Raising market in Brazil. The rise of technology and the internet has made it easier for companies to connect with potential investors and raise capital online. Startups and small businesses, in particular, have benefited from digital capital raising platforms as they can access funding that may not be available through traditional channels.

Additionally, the increasing popularity of social media and online communities has created a network effect, where successful fundraising campaigns attract more investors and increase the visibility of the platform. Local special circumstances in Brazil further drive the growth of the Digital Capital Raising market. The country has a large population and a growing middle class, which creates a significant pool of potential investors.

Additionally, Brazil has a vibrant entrepreneurial ecosystem, with many startups and small businesses looking for funding to fuel their growth. Digital capital raising platforms provide an opportunity for these companies to access capital quickly and efficiently. Underlying macroeconomic factors also play a role in the development of the Digital Capital Raising market in Brazil.

The country has experienced economic volatility in recent years, with periods of recession and slow growth. This has made it more challenging for companies to secure traditional financing from banks and other financial institutions. Digital capital raising platforms offer an alternative source of funding that is not as dependent on macroeconomic conditions.

In conclusion, the Digital Capital Raising market in Brazil is growing due to customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors. The convenience and accessibility of digital capital raising platforms, coupled with the rise of technology and the internet, have made them an attractive option for investors and companies alike. The large population and entrepreneurial ecosystem in Brazil, as well as the economic volatility, further contribute to the growth of the market.

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.