Capital Raising - Germany

Germany

The country in Germany is expected to see the Total Capital Raised in the Capital Raising market market reach US$5.8bn by 2024.
Traditional Capital Raising is set to lead the market, with a projected market volume of US$4.8bn by 2024.
When compared globally, the United States is anticipated to generate the most Capital Raised at US$331,800.0m in 2024.
Germany's Capital Raising market is witnessing a surge in interest from institutional investors, driving significant growth in private placements and IPOs.

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

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Analyst Opinion

The Capital Raising market in Germany has been experiencing significant growth in recent years. This can be attributed to several factors, including customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors.

Customer preferences: In Germany, there is a strong preference among customers for alternative sources of funding, such as venture capital and private equity. This is driven by the desire for flexible financing options and the potential for higher returns on investment. Additionally, German investors are increasingly looking for opportunities to invest in innovative and high-growth companies, which has further fueled the demand for capital raising activities.

Trends in the market: One of the key trends in the Capital Raising market in Germany is the rise of crowdfunding platforms. These platforms provide a way for individuals and businesses to raise funds from a large number of investors, often through small contributions. This trend has been driven by the increasing popularity of social media and the internet, which have made it easier for individuals to connect with potential investors. Crowdfunding has also become an attractive option for investors, as it allows them to diversify their portfolios and support innovative projects. Another trend in the market is the growing interest in sustainable and socially responsible investments. German investors are increasingly looking for opportunities to support companies that align with their values and contribute to positive social and environmental outcomes. This has led to an increase in capital raising activities in sectors such as renewable energy, clean technology, and social enterprises.

Local special circumstances: Germany has a well-developed financial ecosystem, with a strong presence of banks, investment funds, and other financial institutions. This infrastructure provides a solid foundation for capital raising activities and facilitates access to capital for businesses of all sizes. Additionally, the German government has implemented various initiatives to support entrepreneurship and innovation, which has further boosted the capital raising market.

Underlying macroeconomic factors: The strong performance of the German economy has also contributed to the growth of the Capital Raising market. Germany is known for its robust manufacturing sector, technological advancements, and highly skilled workforce. These factors have attracted both domestic and international investors, who are keen to invest in German companies and take advantage of the country's economic stability and growth potential. Furthermore, low interest rates and favorable tax policies have made it more attractive for businesses to seek external funding through capital raising activities. In conclusion, the Capital Raising market in Germany is experiencing significant growth due to customer preferences for alternative funding sources, trends such as crowdfunding and sustainable investments, local special circumstances including a well-developed financial ecosystem and government support, and underlying macroeconomic factors such as a strong economy and favorable financial conditions. This growth is expected to continue in the coming years, as more businesses and investors recognize the benefits of capital raising in Germany.

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.