CrowdLending (Business) - Israel

  • Israel
  • The country in Israel is projected to reach a total transaction value of US$59.3m in 2024 within the Crowdlending (Business) market market.
  • When compared globally, it is notable that China leads with a transaction value of US$15,970m in 2024.
  • Israel's CrowdLending market is rapidly growing, attracting both local and international investors seeking alternative capital-raising opportunities in the innovative Israeli business landscape.

Key regions: United States, Singapore, Brazil, Europe, Germany

 
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Analyst Opinion

The CrowdLending (Business) market in Israel has experienced significant growth in recent years, driven by changing customer preferences and favorable local special circumstances.

Customer preferences:
In Israel, business owners are increasingly turning to CrowdLending platforms as a source of financing for their ventures. This is partly due to the convenience and efficiency offered by these platforms, which allow borrowers to access funds quickly and easily. Additionally, many business owners appreciate the transparency and flexibility of CrowdLending, as they can set their own loan terms and interest rates. This level of control is particularly appealing to small and medium-sized enterprises (SMEs) who may struggle to secure traditional bank loans.

Trends in the market:
One of the key trends in the CrowdLending (Business) market in Israel is the rise of sector-specific platforms. These platforms focus on lending to businesses in specific industries, such as technology or real estate. This specialization allows lenders to better understand the risks and opportunities associated with these sectors, and enables borrowers to access funding tailored to their specific needs. This trend reflects the growing maturity of the CrowdLending market in Israel, as platforms seek to differentiate themselves and cater to the unique requirements of different industries. Another trend in the market is the increasing participation of institutional investors. As CrowdLending platforms in Israel have gained credibility and a track record of successful loans, institutional investors such as banks and asset managers are becoming more comfortable investing in this asset class. This influx of institutional capital has helped to fuel the growth of the CrowdLending market, providing a larger pool of funds for businesses to borrow from.

Local special circumstances:
Israel's vibrant start-up ecosystem and entrepreneurial culture have contributed to the growth of the CrowdLending (Business) market. With a high concentration of innovative and technology-driven companies, there is a strong demand for alternative financing options. CrowdLending platforms have emerged as a viable solution for these businesses, offering a faster and more accessible way to raise capital compared to traditional avenues. Additionally, the Israeli government has implemented supportive policies and initiatives to encourage the growth of the CrowdLending market, recognizing its potential to drive economic development and job creation.

Underlying macroeconomic factors:
The growth of the CrowdLending (Business) market in Israel is also influenced by underlying macroeconomic factors. Low interest rates in the country have made traditional bank loans less attractive for borrowers, leading them to explore alternative financing options. Additionally, the increasing digitization of financial services has made it easier for CrowdLending platforms to reach a wider audience and connect borrowers with lenders. This trend is expected to continue as technology continues to advance and more businesses embrace digital solutions for their financing needs. In conclusion, the CrowdLending (Business) market in Israel is experiencing significant growth due to changing customer preferences, favorable local special circumstances, and underlying macroeconomic factors. The rise of sector-specific platforms and the participation of institutional investors are key trends driving this growth. With a supportive government and a thriving start-up ecosystem, Israel is well-positioned to continue its development as a leading market for CrowdLending in the region.

Methodology

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.

Overview

  • Capital Raised
  • Average Deal Size
  • Global Comparison
  • Number of Deals
  • Analyst Opinion
  • Methodology
  • Key Market Indicators
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