Market Insights Financial Capital Raising

Traditional Capital Raising - Brazil

Brazil

The Traditional Capital Raising market market in Brazil is expected to reach €4.75bn in 2024.
Venture Capital is set to lead the market with a projected volume of €4.44bn in 2024.
When compared globally, most Capital Raised is anticipated to be generated the United States (€145,900.0m in 2024).
Brazil's traditional capital raising market is increasingly turning to local investors for funding due to economic uncertainties affecting foreign investment.

Key regions: Israel, Brazil, United States, Europe, United Kingdom

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Analyst Opinion

The Traditional Capital Raising market in Brazil has been experiencing significant growth in recent years, driven by customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors. Customer preferences in Brazil have shifted towards traditional capital raising methods due to their perceived stability and reliability.

Investors are attracted to the security provided by traditional capital raising, such as initial public offerings (IPOs) and bond issuances. This preference is driven by a desire for long-term investments with steady returns, especially in a market that has experienced volatility in recent years. Trends in the market also contribute to the development of the Traditional Capital Raising market in Brazil.

Companies in Brazil are increasingly looking to raise capital through IPOs to fund their expansion plans and take advantage of favorable market conditions. The growing number of successful IPOs in recent years has further fueled interest in traditional capital raising among both companies and investors. Local special circumstances in Brazil, such as a large and diverse economy, also contribute to the growth of the Traditional Capital Raising market.

Brazil has a robust and well-regulated financial market, which instills confidence in investors and encourages companies to consider traditional capital raising options. Additionally, the Brazilian government has implemented policies to promote capital market development and attract foreign investors, further supporting the growth of the market. Underlying macroeconomic factors play a crucial role in the development of the Traditional Capital Raising market in Brazil.

The country's stable economic growth, low interest rates, and inflation control measures create a favorable environment for capital raising activities. These factors attract both domestic and international investors, who are eager to participate in Brazil's growing economy and take advantage of the potential returns offered by traditional capital raising instruments. In conclusion, the Traditional Capital Raising market in Brazil is developing due to customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors.

Investors and companies in Brazil are increasingly turning to traditional capital raising methods, such as IPOs and bond issuances, due to their perceived stability and reliability. The favorable market conditions, well-regulated financial market, and supportive government policies further contribute to the growth of the market. With Brazil's stable economic growth and attractive investment opportunities, the Traditional Capital Raising market is expected to continue its upward trajectory in the coming years.

Methodology

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on the amount of capital raised, the average 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), and 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. 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.