Know More About “Alternative Financing Market 2022-2028” Growth Worldwide…..|Grand View Research, Inc.Posted by Mrudula Karmarkar on January 2nd, 2023 The global alternative financing market size was projected to reach USD 10.18 billion by 2028 and is expected to witness a CAGR of 6.3% from 2022 to 2028, according to a new report by Grand View Research, Inc. Easy availability of funds as compared to the traditional funding is the vital factor that drives the growth of the market. The rising use for alternative finance platforms, easy accessibility of the financing services, and the cost saved by the customers are driving the growth of the market. However, security threats related to alternative financing are the key factor restraining the growth of the market. Most of the key players working in the market are adopting the strategy of new product launches, mergers, and acquisitions to gain maximum share in the market. The COVID-19 pandemic has positively impacted the market. Alternative financing platforms have helped the start-up companies and small businesses impacted by the COVID-19 pandemic. According to the Journal of Medical Internet Research, the overall GoFundMe campaigns related to the COVID-19 increased by 736% on the week of March 16, 2020, and another 510% in the next week. Wefunder, an equity crowdfunding platform, experienced a rise of 35% in investor volume in February-April 2020. Thus, the COVID-19 pandemic has played an important role in pushing the growth of the market. The crowdinvesting segment contributed to the global market revenue share of around 85% in 2021. The crowdinvesting platform offers entrepreneurs a comparatively economical way to raise funds. Crowdinvesting has been developed as a useful platform for small businesses and start-ups that may find it difficult to raise initial seed funding. Therefore, the demand for crowdinvesting is more and contributed largely to the market revenue. Easy access to capital in comparison with traditional funding is the key driver for the market. Moreover, increasing acceptance of alternative finance instruments, the convenience of the financing services, and the cost saved by the consumers are driving the market. The COVID-19 outbreak positively impacted the market. All over the world, small businesses have been hit very hard by the influence of the COVID-19 pandemic. To overcome this crisis, businesspersons and investors shifted to alternative financing to pursue funding and to invest, correspondingly, while staying safe from the COVID-19. To Request Sample Copy of this report, click the link: https://www.grandviewresearch.com/industry-analysis/alternative-financing-market-report/request/rs1 Alternative financing refers to financial products and services that are mainly developed outside of the traditional, controlled banking and capital market sectors often accessible to customers using digital platforms, instruments, and systems. The market segment basically relates to online financial services for business customers. Globally, alternative financing activities have observed a largely mounting trajectory over the years, with China leading the global alternative finance market. Alternative finance has made raising funds a lot easier as well as less time-consuming. For smaller businesses and startups looking to expand, alternative finance providers are often well aligned to their requirements not only because they can provide less strict measures than traditional lenders such as banks, but also because they can be more flexible and responsive while providing superior customer service. Alternative Financing Market Report Highlights
Alternative financing is rapidly becoming a more promising financing choice for businesses of all kinds. Some fresher forms of alternative finance are largely established outside the U.S., mainly in the UK and Australia. Community shares, in use in the U.K., have been defined as “a way for co-operatives as well as community benefit societies to increase capital from individuals, who in return obtain a direct equity stake in the company.” China, U.K., and the U.S. continuously have the major online alternative finance markets for businesses. In terms of individual markets, China still had a large alternative finance volume by nation followed by the U.S. and UK derived in second and third correspondingly. The COVID-19 pandemic had a positive effect on the market. With COVID-19 effects felt all over the world, businesses all over have required help in debt relief and financial support. During the COVID-19 pandemic, alternative financing has been mostly used by small businesses and startups to increase capital for their creative projects as well as businesses. China is extrapolated due to a restriction on lending by non-banks by specialists in recent years. SME-focused P2P marketplace and balance sheet lenders stated the maximum development in terms of institutional funding volumes. According to Enventys Partners data, the number of Kickstarter campaigns from January 2020 to April 2020 observed an increase of 8.93% over the last year in spite of the COVID-19 pandemic. List of Key Players in Alternative Financing Market
Like it? Share it! More by this author |