Key regions: Europe, Singapore, United States, India, China
Crowdinvesting, also known as equity crowdfunding, is a growing trend in Nigeria. This form of financing allows individuals to invest in startups and small businesses in exchange for equity or shares in the company.
Customer preferences: Nigerian investors are increasingly turning to crowdinvesting as a way to diversify their investment portfolios and support local entrepreneurs. This is driven by a desire for higher returns and the opportunity to invest in innovative and promising startups. Additionally, crowdinvesting provides a more accessible avenue for individuals with limited capital to invest in high-growth companies.
Trends in the market: One of the key trends in the crowdinvesting market in Nigeria is the emergence of online platforms that connect investors with startups. These platforms provide a convenient and transparent way for investors to browse and select investment opportunities. They also offer tools and resources to help investors make informed decisions, such as detailed company profiles and financial projections. Another trend is the increasing participation of institutional investors in crowdinvesting. This is driven by the potential for high returns and the opportunity to support local businesses. Institutional investors bring additional capital and expertise to the market, which can help accelerate the growth of startups and drive innovation.
Local special circumstances: Nigeria has a vibrant startup ecosystem, with a growing number of entrepreneurs launching innovative businesses. However, access to financing has traditionally been a challenge for these startups. Crowdinvesting provides an alternative to traditional funding sources, such as banks and venture capital firms, which may be more difficult for startups to access. Furthermore, Nigeria has a large and young population, with a high level of internet penetration. This creates a favorable environment for crowdinvesting platforms to thrive, as more individuals have access to online investment opportunities and are comfortable conducting financial transactions online.
Underlying macroeconomic factors: The Nigerian economy has experienced periods of volatility, with fluctuations in oil prices and currency devaluations. This has led to a cautious approach among investors, who are seeking alternative investment options that are less susceptible to economic shocks. Crowdinvesting offers the potential for higher returns compared to traditional investment options, which is appealing to investors looking to maximize their returns in a challenging economic environment. In conclusion, the crowdinvesting market in Nigeria is developing rapidly due to customer preferences for diversification and high-growth investment opportunities. The emergence of online platforms and the increasing participation of institutional investors are key trends driving the market. Additionally, Nigeria's vibrant startup ecosystem, young population, and favorable macroeconomic factors contribute to the growth of crowdinvesting in the country.
Data coverage:
The data encompasses B2C enterprises. Figures are based on transaction values / revenues / assets under management and user data of relevant services and products offered within the FinTech market.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 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, consumer spending, population, internet penetration, smartphone penetration, credit card penetration, and online banking penetration. 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.
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