Market Insights Financial Capital Raising Digital Capital Raising

Crowdinvesting - Asia

Asia

The Crowdinvesting market in Asia is projected to reach a total transaction value of €404.20m in 2024.
When comparing globally, it is evident that the United Kingdom leads with a transaction value of €564m in 2024.
In Japan, Crowdinvesting in the Capital Raising market is gaining traction, with a growing number of startups turning to this alternative funding source.

Key regions: Europe, Australia, Brazil, China, Israel

Mercado

Región

Comparación de regiones

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Analyst Opinion

Crowdinvesting, also known as equity crowdfunding, has been gaining traction in Asia in recent years. This alternative form of financing allows individuals to invest in startups and small businesses in exchange for equity or a share of the company.

Customer preferences: The rise of crowdinvesting in Asia can be attributed to several customer preferences. Firstly, investors are increasingly looking for opportunities to diversify their investment portfolios and seek higher returns. Crowdinvesting provides them with the chance to invest in promising startups and potentially earn substantial profits in the long run. Secondly, many individuals in Asia are eager to support local entrepreneurs and contribute to the growth of their economies. Crowdinvesting platforms offer a convenient way for them to invest in local businesses and be part of their success stories.

Trends in the market: One of the key trends in the crowdinvesting market in Asia is the growing popularity of sector-specific platforms. These platforms focus on specific industries such as technology, real estate, or renewable energy, catering to investors with a particular interest or expertise in those sectors. This trend has emerged as a way to streamline the investment process and provide investors with more targeted opportunities. Another trend is the increasing participation of institutional investors in crowdinvesting. As the market matures and regulations become more favorable, institutional investors such as venture capital firms and corporate investors are starting to recognize the potential of crowdinvesting. Their involvement brings additional credibility and expertise to the market, attracting more investors and startups.

Local special circumstances: Asia is a diverse region with unique local circumstances that influence the development of the crowdinvesting market. In countries like Japan and South Korea, where traditional financing options may be limited for startups, crowdinvesting has emerged as a viable alternative. The supportive regulatory environment and strong investor interest have contributed to the growth of the market in these countries. In contrast, countries like China and India have seen a surge in the number of crowdinvesting platforms due to their large populations and vibrant startup ecosystems. These platforms are catering to the growing demand for investment opportunities and providing a platform for entrepreneurs to raise capital.

Underlying macroeconomic factors: The crowdinvesting market in Asia is also influenced by underlying macroeconomic factors. Economic growth, technological advancements, and the increasing number of high-net-worth individuals in the region have created a favorable environment for crowdinvesting. As more individuals become financially literate and have disposable income, they are seeking alternative investment options beyond traditional stocks and bonds. Furthermore, the rise of digital platforms and advancements in financial technology have made it easier for individuals to participate in crowdinvesting. Online platforms provide a seamless and user-friendly experience, allowing investors to browse and invest in startups with just a few clicks. In conclusion, the crowdinvesting market in Asia is experiencing significant growth due to customer preferences for diversification, support for local businesses, and the desire for higher returns. The market is characterized by sector-specific platforms, increasing participation of institutional investors, and unique local circumstances in different countries. Underlying macroeconomic factors such as economic growth and technological advancements are also driving the development 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.

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.