Market Insights Financial Capital Raising

Traditional Capital Raising - Italy

Italy

The Total Capital Raised in Italy's Traditional Capital Raising market market is expected to reach US$463.2m in 2024.
Venture Capital is set to lead the market with a projected market volume of US$363.5m in 2024.
When compared globally, the United States is anticipated to generate the most Capital Raised (US$296,400.0m in 2024).
Italy's traditional capital raising market shows a resurgence in interest from local investors seeking to support domestic businesses.

Key regions: China, India, Europe, Israel, Australia

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Analyst Opinion

The Traditional Capital Raising market in Italy has been experiencing significant growth and development in recent years.

Customer preferences: Italian investors have traditionally shown a strong preference for investing in traditional capital raising methods, such as initial public offerings (IPOs) and private placements. They value the transparency and regulatory oversight that these methods offer, as well as the potential for long-term returns. Additionally, Italian investors tend to have a conservative investment approach and prefer to invest in well-established companies with a proven track record.

Trends in the market: One of the key trends in the Italian capital raising market is the increasing popularity of crowdfunding platforms. These platforms provide an alternative way for companies to raise capital by allowing individuals to invest in their projects or businesses. This trend has been driven by the rise of digital technology and the increasing use of online platforms for financial transactions. Crowdfunding offers a more accessible and inclusive way for individuals to invest, and it has gained traction particularly among younger investors who are looking for innovative investment opportunities. Another trend in the market is the growing interest in sustainable and socially responsible investments. Italian investors are increasingly concerned about the environmental and social impact of their investments and are seeking out companies that align with their values. This has led to a rise in the number of companies raising capital for sustainable projects, such as renewable energy initiatives and social enterprises.

Local special circumstances: Italy has a strong entrepreneurial culture, with many small and medium-sized enterprises (SMEs) playing a vital role in the economy. However, these companies often face challenges when it comes to accessing traditional sources of capital, such as bank loans. This has led to a greater reliance on alternative sources of funding, including traditional capital raising methods. The Italian government has also introduced various initiatives to support SMEs and encourage investment, such as tax incentives and grants.

Underlying macroeconomic factors: The development of the traditional capital raising market in Italy is also influenced by broader macroeconomic factors. The country has experienced a period of economic recovery in recent years, which has created a more favorable environment for capital raising. Low interest rates and favorable market conditions have made it more attractive for companies to raise capital through IPOs or private placements. Additionally, the European Union's Capital Markets Union initiative, which aims to create a single market for capital in Europe, has also had an impact on the Italian market by increasing cross-border investment opportunities. In conclusion, the Traditional Capital Raising market in Italy is developing in response to changing customer preferences, including the increasing popularity of crowdfunding and the growing interest in sustainable investments. Local special circumstances, such as the importance of SMEs in the Italian economy and the government's support for entrepreneurship, also play a role in shaping the market. Furthermore, underlying macroeconomic factors, such as economic recovery and the European Union's initiatives, contribute to the development of the market.

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.