Market Insights Financial Capital Raising Digital Capital Raising

Crowdinvesting - Australia

Australia

Australia is expected to see the Crowdinvesting market's total transaction value reach €41.85m by 2024.
When comparing globally, the United Kingdom is projected to achieve the highest transaction value of €558m in the same year.
Australia's vibrant crowdinvesting scene is fueling innovation and growth in the capital raising market, attracting both local and international investors.

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

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Analyst Opinion

The Crowdinvesting market in Australia 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: Australian investors have shown a growing interest in alternative investment opportunities, seeking higher returns than traditional investment options such as stocks and bonds. Crowdinvesting provides a unique avenue for individuals to invest in startups and early-stage businesses, allowing them to diversify their portfolios and potentially benefit from the success of innovative ventures.

Trends in the market: One of the key trends in the Australian Crowdinvesting market is the rise of equity crowdfunding platforms. These platforms enable entrepreneurs to raise capital by offering equity stakes in their businesses to a large number of investors. This trend has been facilitated by regulatory changes that have made it easier for companies to raise funds through crowdfunding. Another trend is the increasing popularity of real estate crowdfunding. Australian investors have been attracted to the opportunity to invest in property development projects, which traditionally required large amounts of capital. Real estate crowdfunding platforms allow individuals to pool their resources and invest in projects that were previously inaccessible to them.

Local special circumstances: Australia has a thriving startup ecosystem, particularly in sectors such as technology, fintech, and renewable energy. The country's innovative and entrepreneurial culture has created a fertile ground for Crowdinvesting, as investors are eager to support promising startups and contribute to their growth. Furthermore, the Australian government has implemented supportive policies and regulations to foster the growth of Crowdinvesting. The introduction of equity crowdfunding regulations has opened up new avenues for startups and small businesses to raise capital, encouraging more entrepreneurs to explore Crowdinvesting as a financing option.

Underlying macroeconomic factors: Australia's stable economy and relatively high disposable income levels have contributed to the growth of the Crowdinvesting market. With a strong financial sector and a culture of entrepreneurship, Australia has become an attractive destination for both local and international investors. Additionally, low interest rates in Australia have made traditional investment options less appealing, leading investors to seek alternative ways to generate returns. Crowdinvesting offers the potential for higher yields, making it an attractive option for those looking to diversify their investment portfolios. In conclusion, the Crowdinvesting market in Australia has been flourishing due to customer preferences for alternative investment opportunities, the rise of equity and real estate crowdfunding platforms, the country's supportive startup ecosystem and government policies, as well as underlying macroeconomic factors such as a stable economy and low interest rates. This trend is expected to continue as more investors recognize the potential of Crowdinvesting and entrepreneurs continue to seek innovative ways to raise capital.

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.