Capital Raising - Japan

Japan

The country in Japan is expected to see the Total Capital Raised in the Capital Raising market market reach US$4.5bn by 2024.
Traditional Capital Raising is anticipated to lead the market with a projected market volume of US$3.6bn in 2024.
When compared globally, the United States is set to generate the most Capital Raised, with US$331,800.0m in 2024.
Japan's Capital Raising market is seeing a surge in corporate bond issuances as companies seek alternative funding sources amidst economic uncertainties.

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

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Analyst Opinion

The Capital Raising market in Japan has been experiencing significant growth in recent years.

Customer preferences: Japanese investors have shown a strong appetite for capital raising activities, particularly in the equity market. They are increasingly looking for opportunities to invest in companies that have the potential for high growth and returns. This preference for equity investments is driven by the desire to participate in the success of innovative and disruptive companies, as well as the potential for capital appreciation.

Trends in the market: One of the key trends in the capital raising market in Japan is the increasing number of initial public offerings (IPOs). Many companies, especially in the technology and healthcare sectors, have chosen to go public in order to raise capital and expand their operations. This trend is driven by the availability of funding from both domestic and international investors, as well as the desire of companies to take advantage of favorable market conditions. Another trend in the market is the growing popularity of crowdfunding as a means of capital raising. This allows small and medium-sized enterprises (SMEs) to access funding from a wide range of investors, including individuals and institutional investors. Crowdfunding platforms have gained traction in Japan, providing an alternative source of capital for companies that may not have access to traditional financing options.

Local special circumstances: Japan's aging population and low birth rate have created challenges for the country's economy. In response, the government has implemented policies to promote entrepreneurship and innovation, which has led to an increase in capital raising activities. The government has also introduced measures to facilitate the listing of SMEs on the stock exchange, making it easier for these companies to raise capital.

Underlying macroeconomic factors: The strong performance of the Japanese economy has also contributed to the growth of the capital raising market. Japan has experienced a period of economic stability and growth, which has attracted both domestic and international investors. Additionally, the Bank of Japan's accommodative monetary policy has created a favorable environment for capital raising activities. In conclusion, the Capital Raising market in Japan is experiencing significant growth, driven by customer preferences for equity investments and the availability of funding from both domestic and international investors. The increasing number of IPOs and the popularity of crowdfunding are key trends in the market. Japan's aging population and low birth rate, along with government policies to promote entrepreneurship, have also contributed to the growth of the capital raising market. The strong performance of the Japanese economy and accommodative monetary policy are underlying macroeconomic factors supporting this growth.

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.