Market Insights Financial Capital Raising

Digital Capital Raising - Europe

Europe

The Digital Capital Raising market market in Europe is projected to reach a total transaction value of €9.55bn in 2024.
MarketCrowdlending (Business) leads the market with a projected total transaction value of €5.58bn in 2024.
When compared globally, the United States is expected to reach the highest cumulated transaction value of €33,380m in 2024.
In Europe, the trend of utilizing blockchain technology for digital capital raising is gaining traction in the capital raising market.

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

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Analyst Opinion

The Digital Capital Raising market in Europe is experiencing significant growth and development due to several key factors.

Customer preferences: In today's digital age, customers are increasingly looking for convenient and efficient ways to raise capital. The traditional methods of capital raising, such as bank loans and venture capital, are often time-consuming and require extensive paperwork. As a result, there is a growing preference for digital platforms that offer streamlined processes and faster access to capital.

Trends in the market: One major trend in the Digital Capital Raising market in Europe is the rise of crowdfunding platforms. These platforms allow individuals and businesses to raise capital from a large number of investors, often through small contributions. Crowdfunding offers a more inclusive approach to capital raising, as it allows individuals who may not have access to traditional funding sources to participate in investment opportunities. This trend is particularly prominent in countries with a strong entrepreneurial culture, such as the United Kingdom and Germany. Another trend is the emergence of peer-to-peer lending platforms. These platforms connect borrowers directly with lenders, cutting out the traditional intermediaries such as banks. Peer-to-peer lending offers borrowers more flexible terms and lower interest rates, while providing lenders with higher returns on their investments. This trend is gaining traction in countries where there is a lack of access to traditional banking services, such as Eastern European countries.

Local special circumstances: The Digital Capital Raising market in Europe is also influenced by local special circumstances. For example, in countries with strict regulations on traditional capital raising methods, such as France, there is a greater demand for digital platforms that offer alternative financing options. Additionally, in countries with a large number of small and medium-sized enterprises (SMEs), such as Italy and Spain, there is a growing need for digital capital raising platforms that cater specifically to the needs of these businesses.

Underlying macroeconomic factors: The development of the Digital Capital Raising market in Europe is also driven by underlying macroeconomic factors. For instance, the low interest rate environment in the Eurozone has made it more challenging for savers to generate returns on their investments. As a result, there is a greater appetite for alternative investment opportunities, such as digital capital raising platforms. Additionally, the economic impact of the COVID-19 pandemic has led to a tightening of credit conditions, making it more difficult for businesses to access traditional funding sources. This has further fueled the demand for digital capital raising platforms as a viable alternative. In conclusion, the Digital Capital Raising market in Europe is experiencing significant growth and development due to customer preferences for convenience and efficiency, as well as the emergence of crowdfunding and peer-to-peer lending platforms. Local special circumstances and underlying macroeconomic factors also play a role in shaping the market dynamics. As the digital economy continues to evolve, it is expected that the Digital Capital Raising market in Europe will continue to expand and innovate to meet the changing needs of customers.

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.