Market Insights Financial Capital Raising

Traditional Capital Raising - Israel

Israel

The Total Capital Raised in the Traditional Capital Raising market market in Israel is expected to reach €11.13bn by 2024.
Venture Capital is set to dominate the market with a projected market volume of €10.48bn in 2024.
When compared globally, the United States is anticipated to generate the most Capital Raised, amounting to €145,900.0m in 2024.
Israel's traditional capital raising market is experiencing a surge in interest from international investors seeking innovative tech opportunities in the Start-up Nation.

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

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Analyst Opinion

The Traditional Capital Raising market in Israel has been experiencing significant growth in recent years, driven by various factors such as customer preferences, market trends, local special circumstances, and underlying macroeconomic factors.

Customer preferences: In Israel, there is a strong preference among investors for traditional capital raising methods, such as initial public offerings (IPOs) and private placements. This is due to the perceived stability and long-term growth potential offered by these traditional methods. Investors in Israel tend to have a conservative approach to investing and prefer established companies with a proven track record.

Trends in the market: One of the key trends in the Traditional Capital Raising market in Israel is the increasing number of technology companies opting for IPOs. Israel is known for its thriving technology sector, and many startups are choosing to go public to raise capital and expand their operations. This trend is driven by the high demand for technology stocks and the potential for significant returns on investment. Another trend in the market is the growing interest in cross-border capital raising. Israeli companies are increasingly looking to raise capital from international investors, particularly in the United States and Europe. This trend is fueled by the globalization of markets and the desire for Israeli companies to access larger pools of capital.

Local special circumstances: Israel has a unique startup ecosystem known as the "Startup Nation. " The country has a high concentration of innovative and technology-driven companies, which attracts both domestic and international investors. This ecosystem fosters a culture of entrepreneurship and innovation, making Israel an attractive destination for capital raising activities. Additionally, Israel has a well-developed regulatory framework that provides investor protection and transparency. This regulatory environment instills confidence in both local and international investors, further fueling the growth of the Traditional Capital Raising market in Israel.

Underlying macroeconomic factors: The Israeli economy has been experiencing steady economic growth, fueled by sectors such as technology, healthcare, and defense. This economic growth creates a favorable environment for capital raising activities, as companies seek to take advantage of the positive market conditions. Furthermore, the Israeli government has implemented various policies and initiatives to support the growth of the Traditional Capital Raising market. These include tax incentives for investors and measures to attract foreign investment. These initiatives contribute to the overall development and expansion of the market. In conclusion, the Traditional Capital Raising market in Israel is developing rapidly due to customer preferences for traditional methods, the increasing number of technology companies opting for IPOs, the growing interest in cross-border capital raising, the unique startup ecosystem, the well-developed regulatory framework, and the underlying macroeconomic factors. These factors combined create a favorable environment for capital raising activities and contribute to the overall growth of the market.

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.