Market Insights Financial Capital Raising

Digital Capital Raising - Germany

Germany

Germany's Digital Capital Raising market market is projected to reach a total transaction value of €969.70m in 2024.
In this market, MarketMarketplace Lending (Consumer) is expected to dominate with a projected total transaction value of €732.70m in 2024.
When compared globally, the United States leads with the highest cumulated transaction value of €33,380m in 2024.
Germany is embracing digital platforms for capital raising, revolutionizing the traditional market landscape with innovative technologies and streamlined processes.

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

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Analyst Opinion

The Digital Capital Raising market in Germany is experiencing significant growth and development.

Customer preferences: German investors are increasingly turning to digital platforms for capital raising due to the convenience and accessibility they offer. These platforms provide a streamlined and efficient process for both investors and companies seeking funding. Additionally, investors are attracted to the potential for higher returns and diversification offered by digital capital raising.

Trends in the market: One major trend in the German Digital Capital Raising market is the rise of crowdfunding platforms. These platforms allow individuals to invest in a wide range of projects and businesses, from startups to real estate developments. This democratization of investment opportunities has gained popularity as investors seek to support innovative ideas and diversify their portfolios. Another trend is the emergence of digital securities, also known as security tokens. These are blockchain-based tokens that represent ownership or investment in an underlying asset, such as a company's shares or real estate. Digital securities offer advantages such as increased liquidity, fractional ownership, and automated compliance. This trend is driven by the growing acceptance and adoption of blockchain technology in Germany.

Local special circumstances: Germany has a strong economy and a well-developed financial sector, making it an attractive market for digital capital raising. The country has a large number of high-net-worth individuals and institutional investors who are actively seeking investment opportunities. Additionally, Germany has a supportive regulatory environment that encourages innovation and investment.

Underlying macroeconomic factors: The growth of the Digital Capital Raising market in Germany is influenced by several macroeconomic factors. Firstly, low interest rates have made traditional investment options less attractive, leading investors to seek alternative ways to generate returns. Secondly, the digital transformation of industries has created new investment opportunities, particularly in sectors such as technology, renewable energy, and e-commerce. Finally, Germany's position as a global leader in innovation and technology has attracted both domestic and international investors to the digital capital raising market. In conclusion, the Digital Capital Raising market in Germany is experiencing significant growth and development. This is driven by customer preferences for convenience and accessibility, as well as the emergence of crowdfunding platforms and digital securities. Germany's strong economy, supportive regulatory environment, and underlying macroeconomic factors contribute to the growth of this 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. 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.