The VC Market in Denmark
When a business reaches a certain level it is common for it to require more funding to be able to make the necessary expansions. Providing this type of funding is just one of the benefits offered by the venture capital sector. By making this kind of investment into a business the venture capitalist is committing to provide the necessary funding as well as the expertise and experience needed to help make the business successful. As a venture capitalist, Efraim Landa has offered many companies expertise about successfully building a business as well as the funding needed to ensure the business has a fair chance of taking off and becoming profitable. The venture capitalist is an active investor in the business and may end up investing many years into the company before they realize a profit. The VC investor makes their money back plus a sizable profit when the business grows to the point of making a public offering or a sellout. Each region of the world has its own VC market that contributes to the economy of the area.
History of Denmark’s Venture Capital Market
The VC market opened up wide in Denmark in the late 80s and the number of venture capitalists has continued to increase. Denmark’s economy is open, dynamic but small and it is comprised of mostly small and medium sized businesses. Before 2000 Denmark had an entrepreneurship policy which was aimed at priming the economy for entrepreneurship. Over the years, the region has instituted several different programs that were aimed at promoting entrepreneurship. It appears that the overall climate for entrepreneurship is positive and there are many healthy businesses. In recent years the VC market in Denmark has continued to grow steadily. In 2008 the VC market in Denmark had 45 investors but over the last 5 or 6 years there has been substantial growth and maturity. Not only have there been more startups, but businesses have been growing as well so that companies are closing at larger sums than ever before. Over the last decade the VC market in Denmark has become very well established.
Future of the Denmark VC Market
Presently, the VC market is providing good access to funding for startups but funding for later endeavors is very difficult to secure. Venture capitalists are focusing on fewer companies which may put some constraints on the market at a later date. However, Denmark does have access to many of the more lucrative sections of the EU and they have over 100 million consumers which can help drive the market. One thing that Denmark has going for them is that the population is very well educated and most are multilingual. Much of the nation’s population has obtained a degree from a university. Denmark has very little red tape or bureaucracy so that means that each person can spend the effort focusing on their business. This safe environment for the business person creates a ripe environment that feels safe for the venture capitalist to invest funding and time into. One aspect of this is sure to spawn more startups since a business can be established in a matter of a few hours and at a very little expense. These factors are likely to help the growing trends in Denmark and businesses are expected to continue to grow and offer much larger closings. They already have the infrastructure in place to become an economic hub. Over the years the Danish government has initiated many programs and taken steps to help ensure Denmark is attractive for the venture capitalists, investments and brand new business ventures. Its solid infrastructure is certain to continue encouraging growth within the private sector.
Posted on August 26, 2013, in Business Financing, Effi Enterprise, History of Venture Capital, Venture Capital, Venture Capital Markets and tagged International Finance, VC History, VC Market, venture capital market, venture capitalist. Bookmark the permalink. Leave a comment.