Danish growth companies may be short of up to DKK 69 billion in capital through 2035, according to an analysis from EIFO, which has stepped up its efforts to keep more companies rooted in Denmark.
Over recent decades, Denmark has built a strong ecosystem for entrepreneurs and venture investment. But as companies grow larger and need significant amounts of capital to scale, there remain too few investors in the Danish market with sufficient size and risk appetite.
A new analysis from EIFO shows that Danish growth-stage companies face a funding gap of EUR 3.1 to 9.2 billion (roughly DKK 23 to 69 billion) from 2026 to 2035. Over the same period, cumulative demand for growth capital is projected at EUR 6.3 to 12.4 billion (roughly DKK 47 to 92 billion), while the dedicated growth capital expected to be available is just under EUR 3.2 billion (roughly DKK 24 billion).
"Denmark has been good at creating new companies and building a strong venture environment. But once companies reach the later growth stages, it becomes far harder to find capital in Denmark. If we don't act, the funding gap will only grow larger. That is precisely the challenge we are now working purposefully to solve," says Mads Lacoppidan, Managing Director and head of growth investments at EIFO.
Over the past year, EIFO has significantly stepped up its efforts targeting growth companies and the investment environment around them — including a DKK 1.5 billion investment in the Scaleup Europe Fund, EIFO's largest single fund investment to date, as well as a new Growth team with ten investment professionals.
The analysis points to a clear connection between where Danish growth companies raise their capital and where they end up at exit. Companies acquired by foreign buyers have generally raised markedly more foreign capital along the way — and none of the observed growth-stage exits have ended up in Danish hands.
Foreign investors continue to account for around 72 percent of total growth capital in Danish growth-stage companies, with the United States as the fastest-growing source of capital. Danish investors, by contrast, participate in 71 percent of all growth rounds but account for only 28 percent of the capital.
"Foreign capital is essential for Danish growth companies, and it should continue to be so in the future. But the analysis also shows that the Danish investor base is too narrow. If more Danish companies are to have the opportunity to grow globally while remaining rooted in Denmark, it requires a larger and stronger capital base at home," Mads adds.
Want to dig into the numbers, methodology and full conclusions? Download EIFO's Growth analysis "Danish Growth-Stage Venture Capital – Scaling Danish Companies" for the complete picture of the Danish growth capital market, including projections through 2035, the investor landscape and exit patterns.