Capital Raising - Germany

Germany

The country in Germany is expected to see the Total Capital Raised in the Capital Raising market market reach €4.04bn by 2025.
Traditional Capital Raising is set to lead the market, with a projected market volume of €3.07bn by 2025.
When compared globally, the United States is anticipated to generate the most Capital Raised at €187,100.0m in 2025.
Germany's Capital Raising market is witnessing a surge in interest from institutional investors, driving significant growth in private placements and IPOs.

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

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Analyst Opinion

The Capital Raising market in Germany is currently experiencing a mild decline, influenced by factors such as regulatory changes, evolving investor preferences, and the increasing shift towards digital fundraising platforms, which are reshaping traditional investment approaches.

Customer preferences: Investors in Germany are increasingly gravitating towards sustainable and socially responsible investment opportunities, reflecting a broader cultural shift towards environmental consciousness and ethical considerations. This trend is particularly pronounced among younger demographics, who prioritize transparency and impact over traditional profit-driven motives. Additionally, the rise of digital platforms has democratized access to investment opportunities, appealing to a tech-savvy audience eager for innovative financing solutions. As a result, traditional capital raising methods are being challenged by this evolving landscape.

Trends in the market: In Germany, the Capital Raising Market is experiencing a significant shift towards sustainable investment strategies, with a notable increase in green bonds and ESG-focused funds gaining traction among investors. The surge in interest from younger investors is driving demand for transparency in corporate governance and social impact, prompting companies to adopt more responsible practices. Additionally, the emergence of crowdfunding platforms is democratizing access to capital, enabling startups and SMEs to tap into a broader investor base. This evolving landscape is reshaping traditional fundraising methods, compelling industry stakeholders to adapt to changing investor preferences and regulatory frameworks.

Local special circumstances: In Germany, the Capital Raising Market is shaped by a strong regulatory framework that emphasizes corporate responsibility and sustainability, influenced by the country’s commitment to environmental goals. The cultural emphasis on social impact and ethical investing resonates with a growing cohort of investors who prioritize ESG criteria. Furthermore, Germany's robust financial infrastructure supports innovative funding mechanisms, such as green bonds and crowdfunding platforms, making it easier for startups to access diverse capital sources. These local factors uniquely position Germany as a leader in sustainable finance within Europe.

Underlying macroeconomic factors: The Capital Raising Market in Germany is significantly influenced by macroeconomic factors such as national economic stability, global market trends, and fiscal policies. A strong economy, characterized by low unemployment and robust industrial output, fosters investor confidence and encourages capital inflows. Additionally, Germany's commitment to sustainable development aligns with global trends favoring green investments, attracting a diverse range of investors. Fiscal policies that support innovation and entrepreneurship, including tax incentives for startups, further enhance access to capital. This conducive environment positions Germany as a pivotal player in the European sustainable finance landscape, driving growth in capital raising activities.

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.