Capital Raising - Europe

Europe

The country in Europe is projected to see Total Capital Raised in the Capital Raising market market reach €30.95bn in 2024.
Traditional Capital Raising is expected to dominate the market with a projected market volume of €21.30bn in 2024.
In global comparison, the United States is forecasted to generate the most Capital Raised (€181,200.0m in 2024).
In Europe, the Capital Raising market in Germany is seeing a surge in interest from institutional investors seeking diverse investment opportunities.

Key regions: United States, China, India, Israel, Europe

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Analyst Opinion

The Capital Raising market in Europe has been experiencing significant growth in recent years, driven by a number of key factors.

Customer preferences: Investors in Europe have shown a growing appetite for capital raising activities, seeking opportunities to diversify their portfolios and generate higher returns. This has led to increased demand for capital raising instruments such as initial public offerings (IPOs), bonds, and private equity investments.

Trends in the market: One major trend in the European capital raising market is the rise of sustainable finance. Investors are increasingly focused on environmental, social, and governance (ESG) criteria when making investment decisions. This has led to a surge in green bonds and sustainable investment funds, as companies and governments look to raise capital for projects that have a positive impact on the environment and society. Another trend in the market is the growing popularity of alternative financing methods. Traditional bank lending has become more stringent in the wake of the global financial crisis, leading many companies to seek alternative sources of funding. Crowdfunding and peer-to-peer lending platforms have emerged as viable options, allowing businesses to raise capital directly from individual investors.

Local special circumstances: In addition to these global trends, there are also local special circumstances that are shaping the capital raising market in Europe. For example, the Brexit process has created uncertainty in the UK, leading to a slowdown in capital raising activities as companies and investors adopt a wait-and-see approach. On the other hand, countries in Central and Eastern Europe have seen a surge in capital raising activities, as they benefit from strong economic growth and favorable business environments.

Underlying macroeconomic factors: The development of the capital raising market in Europe is also influenced by underlying macroeconomic factors. The low interest rate environment in the Eurozone has made borrowing cheaper, encouraging companies to seek external financing to fund their expansion plans. Additionally, the European Central Bank's quantitative easing program has injected liquidity into the financial system, making it easier for companies to access capital. Overall, the capital raising market in Europe is experiencing significant growth due to customer preferences for diversification and higher returns, as well as trends such as sustainable finance and alternative financing methods. Local special circumstances, such as the impact of Brexit, also play a role in shaping the market. Underlying macroeconomic factors, such as low interest rates and ample liquidity, further support the development of the market.

Methodology

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on the amount of capital raised, the average of deal size and the number of deals.

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 data from OECD, 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, CPI, number of small and medium-sized enterprises (SME), new businesses registered (number) . 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.