Market Insights Financial Capital Raising Digital Capital Raising

CrowdLending (Business) - Germany

Germany

Germany is expected to see the total transaction value in the Crowdlending (Business) market market reach €127.10m by 2024.
When comparing globally, it is evident that China is projected to reach the highest transaction value, amounting to €14,810m in 2024.
Germany's CrowdLending market for Capital Raising is seeing a surge in investor interest, reflecting the country's strong economy and tech-savvy population.

Key regions: China, United Kingdom, Brazil, Israel, India

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Analyst Opinion

The CrowdLending (Business) market in Germany is experiencing significant growth and development.

Customer preferences: In Germany, businesses are increasingly turning to CrowdLending as a source of financing. This is due to several factors. Firstly, CrowdLending offers businesses a flexible and efficient way to access funding, without the need for traditional banks or financial institutions. Secondly, it provides an opportunity for businesses to engage directly with investors, allowing for a more personalized and transparent lending experience. Finally, CrowdLending platforms in Germany often offer competitive interest rates, making it an attractive option for businesses looking to borrow.

Trends in the market: One of the key trends in the CrowdLending market in Germany is the rise of platform specialization. As the market becomes more crowded, platforms are increasingly focusing on specific industries or sectors, such as real estate, renewable energy, or small businesses. This specialization allows platforms to better understand the needs and risks of these industries, and tailor their lending offerings accordingly. Additionally, it provides businesses with access to lenders who have expertise and interest in their specific sector, increasing the likelihood of successful funding. Another trend in the market is the integration of technology and data analytics. CrowdLending platforms in Germany are leveraging advanced technologies to streamline the lending process and improve risk assessment. For example, some platforms are using machine learning algorithms to analyze borrower data and make more accurate lending decisions. This not only speeds up the funding process but also reduces the risk of default for lenders.

Local special circumstances: Germany's strong economy and business-friendly environment contribute to the growth of the CrowdLending market. The country has a large number of small and medium-sized enterprises (SMEs) that often struggle to access traditional financing options. CrowdLending provides these businesses with an alternative source of funding, enabling them to grow and thrive. Additionally, the German government has been supportive of the fintech industry, creating a favorable regulatory environment that encourages innovation and investment in CrowdLending platforms.

Underlying macroeconomic factors: Germany's stable economic conditions and low interest rates have also played a role in the development of the CrowdLending market. With interest rates at historic lows, investors are seeking alternative investment opportunities that offer higher returns. CrowdLending provides an attractive option for investors looking to diversify their portfolios and earn a competitive yield. Furthermore, the German economy's resilience and strong creditworthiness make it an attractive market for both domestic and international investors. In conclusion, the CrowdLending (Business) market in Germany is experiencing growth and development driven by customer preferences for flexible financing options, specialization in specific industries, and the integration of technology and data analytics. The country's strong economy, business-friendly environment, and low interest rates also contribute to the market's growth. Overall, CrowdLending is becoming an increasingly popular choice for businesses in Germany seeking funding, and the market is expected to continue to expand in the coming years.

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.