Market Insights Financial Capital Raising Digital Capital Raising

Crowdinvesting - Brazil

Brazil

The projected total transaction value in the Crowdinvesting market in Brazil is expected to reach €8.36m in 2024.
When considering a global comparison, it is evident that the United Kingdom leads with a transaction value of €564m in 2024.
Brazil's crowdinvesting in the capital raising market is gaining traction, offering diverse opportunities for investors seeking exposure to the country's dynamic economy.

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

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Analyst Opinion

Crowdinvesting, also known as equity crowdfunding, is a growing trend in Brazil. This alternative form of financing allows individuals to invest in startups and small businesses in exchange for equity or shares in the company.

Customer preferences: In Brazil, there is a strong entrepreneurial spirit, with many individuals looking for opportunities to invest in innovative and promising startups. Crowdinvesting provides a platform for these investors to support local businesses and potentially earn a return on their investment. Additionally, the ease and convenience of online platforms make it attractive for individuals to participate in crowdinvesting campaigns.

Trends in the market: One of the key trends in the crowdinvesting market in Brazil is the increasing number of platforms and campaigns. As more entrepreneurs and startups recognize the benefits of crowdinvesting, they are turning to these platforms to raise capital. This has led to a wider range of investment opportunities for individuals, allowing them to diversify their portfolios. Another trend is the focus on social impact and sustainability. Many crowdinvesting campaigns in Brazil are centered around businesses that have a positive social or environmental impact. This resonates with investors who are not only looking for financial returns but also want to support companies that align with their values.

Local special circumstances: Brazil has a large population and a growing middle class, which provides a strong customer base for crowdinvesting platforms. The country also has a vibrant startup ecosystem, with a number of successful companies emerging in recent years. This has created a favorable environment for crowdinvesting, as investors are eager to support the next big success story. Furthermore, the Brazilian government has implemented regulations to promote crowdinvesting and protect investors. This has increased trust and confidence in the market, attracting more individuals to participate.

Underlying macroeconomic factors: Brazil has experienced economic volatility in recent years, with periods of recession and slow growth. This has made it challenging for startups and small businesses to access traditional financing options. Crowdinvesting offers an alternative source of capital, allowing these companies to raise funds and grow their businesses. Additionally, low interest rates in Brazil have made traditional investment options less attractive. Crowdinvesting provides an opportunity for individuals to potentially earn higher returns on their investments, making it an appealing option in the current economic environment. In conclusion, the crowdinvesting market in Brazil is developing due to customer preferences for supporting local startups, the increasing number of platforms and campaigns, the focus on social impact and sustainability, the country's favorable startup ecosystem, government regulations, and underlying macroeconomic factors such as economic volatility and low interest rates. This trend is likely to continue as more individuals recognize the benefits of crowdinvesting and as the market matures.

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.