Capital Raising - Australia

Australia

The Capital Raising market market in Australia is expected to see Total Capital Raised reaching US$1.6bn in 2024.
Traditional Capital Raising is anticipated to lead the market with a projected market volume of US$1.3bn in 2024.
When compared globally, the United States is set to generate the most Capital Raised in 2024, with US$331,800.0m.
Australia's Capital Raising market is seeing a surge in Initial Public Offerings (IPOs) as companies seek funding for expansion and innovation.

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

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Analyst Opinion

The Capital Raising market in Australia has experienced significant growth in recent years, driven by customer preferences for alternative sources of funding and favorable market conditions.

Customer preferences: In Australia, there is a growing trend among businesses to seek capital from sources other than traditional bank loans. This shift in customer preferences can be attributed to several factors. Firstly, businesses are increasingly looking for more flexible and innovative funding solutions that can meet their specific needs. This has led to a rise in the popularity of alternative financing options such as equity crowdfunding and peer-to-peer lending. Additionally, businesses are also attracted to the potential for higher returns and the opportunity to engage with a broader investor base through these alternative channels.

Trends in the market: One of the key trends in the Australian Capital Raising market is the rise of equity crowdfunding platforms. These platforms provide a way for businesses to raise capital from a large number of investors, often in exchange for equity in the company. This trend has been fueled by changes in regulations that have made it easier for businesses to access this type of funding. As a result, we have seen a significant increase in the number of equity crowdfunding campaigns and the amount of capital raised through these platforms. Another trend in the market is the growing popularity of initial coin offerings (ICOs). An ICO is a fundraising method in which a company issues digital tokens or coins to investors in exchange for funding. Australia has seen a surge in ICO activity, with many companies choosing to raise capital through this innovative method. This trend can be attributed to the increasing interest in blockchain technology and the potential for high returns associated with investing in cryptocurrencies.

Local special circumstances: Australia's Capital Raising market has been further bolstered by the country's strong entrepreneurial culture and supportive regulatory environment. The government has implemented measures to encourage innovation and investment, such as the introduction of tax incentives for early-stage investors and the establishment of innovation hubs. These initiatives have attracted both local and international investors, contributing to the growth of the market.

Underlying macroeconomic factors: The growth of the Capital Raising market in Australia is also influenced by underlying macroeconomic factors. The country has experienced a period of sustained economic growth, low interest rates, and a stable financial system. These conditions have provided a favorable environment for businesses to raise capital and investors to seek attractive investment opportunities. Additionally, Australia's proximity to the Asia-Pacific region has positioned it as an attractive destination for international investors looking to tap into the region's economic potential. In conclusion, the Capital Raising market in Australia is experiencing significant growth due to customer preferences for alternative funding sources, the rise of equity crowdfunding and ICOs, the country's supportive regulatory environment, and favorable macroeconomic conditions. These factors have contributed to a vibrant and dynamic market that offers businesses and investors a range of opportunities for capital raising and investment.

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.