Market Insights Financial Capital Raising

Digital Capital Raising - United Kingdom

United Kingdom

The total transaction value in the Digital Capital Raising market market in the United Kingdom is projected to reach €4.74bn in 2024.
MarketCrowdlending (Business) leads the market with a projected total transaction value of €3.92bn in 2024.
When compared globally, the United States boasts the highest cumulated transaction value, reaching €33,380m in 2024.
The United Kingdom is experiencing a surge in digital capital raising through innovative crowdfunding platforms and blockchain technology integration.

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

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Región

Comparación de regiones

Moneda

Analyst Opinion

The Digital Capital Raising market in United Kingdom has been experiencing significant growth in recent years.

Customer preferences: Investors in the United Kingdom are increasingly turning to digital platforms for capital raising due to the convenience and accessibility they offer. These platforms allow investors to easily access a wide range of investment opportunities and make informed decisions. Additionally, digital capital raising platforms often provide a more streamlined and efficient process, reducing the time and effort required for investors to participate in capital raising activities.

Trends in the market: One of the key trends in the Digital Capital Raising market in the United Kingdom is the rise of crowdfunding platforms. These platforms allow individuals to invest in a variety of projects and start-ups, ranging from technology companies to real estate developments. Crowdfunding has become particularly popular among younger investors who are looking for alternative investment opportunities and want to support innovative projects. Another trend in the market is the increasing use of blockchain technology for capital raising. Blockchain provides a secure and transparent way to raise funds, allowing investors to track their investments and ensuring that transactions are recorded accurately. This technology has the potential to revolutionize the capital raising process by eliminating intermediaries and reducing costs.

Local special circumstances: The United Kingdom has a well-established financial services industry, which has played a significant role in the development of the Digital Capital Raising market. The presence of major financial institutions and a robust regulatory framework has helped to build trust and confidence among investors. Additionally, the United Kingdom has a strong start-up ecosystem, with a high number of innovative companies seeking funding. This has created a fertile ground for the growth of digital capital raising platforms.

Underlying macroeconomic factors: The growth of the Digital Capital Raising market in the United Kingdom can also be attributed to underlying macroeconomic factors. The low interest rate environment has made traditional forms of investment less attractive, leading investors to seek higher returns elsewhere. Additionally, the uncertainty surrounding Brexit has created a more cautious investment climate, with investors looking for opportunities that are less exposed to the risks associated with the UK's withdrawal from the European Union. These factors have contributed to the increased demand for digital capital raising platforms as investors search for alternative investment options. In conclusion, the Digital Capital Raising market in the United Kingdom is experiencing significant growth due to customer preferences for convenience and accessibility, as well as the rise of crowdfunding platforms and the use of blockchain technology. The local special circumstances, including the presence of a strong financial services industry and a vibrant start-up ecosystem, have also contributed to the market's development. Furthermore, underlying macroeconomic factors, such as the low interest rate environment and the uncertainty surrounding Brexit, have driven investors to seek alternative investment opportunities.

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.