Market Insights Financial Capital Raising

Digital Capital Raising - Hong Kong

Hong Kong

The country of Hong Kong is projected to reach a total transaction value of €41.88m in the Digital Capital Raising market market by 2024.
In the same year, MarketReward-Based Crowdfunding is expected to dominate the market with a projected total transaction value of €25.47m.
When comparing globally, the United States leads with the highest cumulated transaction value of €33,380m in 2024.
In Hong Kong, 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

Hong Kong has witnessed a significant development in its Digital Capital Raising market in recent years.

Customer preferences: Investors in Hong Kong have shown a growing preference for digital capital raising platforms due to their convenience and accessibility. These platforms allow investors to participate in fundraising activities from anywhere, at any time, without the need for physical presence. This has attracted a wide range of investors, including retail investors and institutional investors, who are looking for opportunities to diversify their portfolios and access new investment opportunities.

Trends in the market: One of the key trends in the Digital Capital Raising market in Hong Kong is the rise of Initial Coin Offerings (ICOs). ICOs have gained popularity as a method for companies to raise funds by issuing digital tokens or coins. This trend has been driven by the increasing interest in blockchain technology and cryptocurrencies. Companies in various sectors, including technology, finance, and real estate, have embraced ICOs as a way to raise capital quickly and efficiently. Another trend in the market is the emergence of crowdfunding platforms. These platforms allow individuals and businesses to raise funds from a large number of people, often through small individual contributions. Crowdfunding has become a popular alternative to traditional financing methods, as it provides access to capital without the need for extensive documentation or collateral. This trend has been particularly beneficial for startups and small businesses in Hong Kong, who may struggle to secure funding through traditional channels.

Local special circumstances: Hong Kong's status as a global financial hub has played a significant role in the development of the Digital Capital Raising market. The city's well-established regulatory framework and strong investor protection measures have instilled confidence in investors and businesses alike. This has attracted a large number of companies to choose Hong Kong as their base for digital capital raising activities. Furthermore, Hong Kong's proximity to Mainland China has provided additional opportunities for companies looking to raise capital. The city's close ties with the Mainland have allowed Hong Kong-based companies to tap into the vast Chinese market, which has a growing appetite for digital investments. This has further fueled the growth of the Digital Capital Raising market in Hong Kong.

Underlying macroeconomic factors: The development of the Digital Capital Raising market in Hong Kong can also be attributed to the city's strong economic fundamentals. Hong Kong has a robust financial system, supported by a stable currency and a well-regulated banking sector. These factors have created a favorable environment for digital capital raising activities, as investors have confidence in the stability and transparency of the market. Additionally, Hong Kong's strategic location in the Asia-Pacific region has made it an attractive destination for companies looking to expand their operations in the region. The city's strong connectivity and infrastructure have facilitated the flow of capital and investment, further supporting the growth of the Digital Capital Raising market. In conclusion, the Digital Capital Raising market in Hong Kong has experienced significant growth in recent years, driven by customer preferences for convenience and accessibility, the rise of ICOs and crowdfunding platforms, the city's status as a global financial hub, its proximity to Mainland China, and its strong economic fundamentals. These factors have created a favorable environment for companies and investors to participate in digital capital raising activities, positioning Hong Kong as a key player in the global 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.

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.