Did you know that...

... Vækstfonden is one of the largest investors in the Danish venture market with total commitments of DKK 3.7 billion to 20 venture funds.

Vækstfonden in Brief

Vækstfonden is a state investment fund, which aims to create new growth companies by providing venture capital and competence. Since 1992 Vækstfonden has, in cooperation with private investors, co-financed growth in more than 4,000 Danish companies with a total commitment of more than DKK 7.7 billion. Vækstfonden invests equity or provides loans and guarantees in collaboration with private partners and Danish financial institutions. The companies which Vækstfonden has co-financed since 1992 represent a total turnover of more than DKK 25 billion and employ approx. 27,000 people all over the country.

Vækst-Invest Nordjylland, a regional investment fund operating in the Northern part of Jylland, was founded in 2008.

The Impact on Society – Higher Growth

Venture backed companies is an engine for growth and development in the Danish economy.

Venture capital is important in generating economic growth. Many surveys have found that venture backed companies have a significant positive impact on the Danish economy. The same dynamic applies also to many other national markets.

The market for venture capital makes up a modest, but increasing, part of the Danish economy. Of the 15,000 to 20,000 new companies that are founded in Denmark each year, venture capital investors fund around 0.2%.

But the effect on the economy is much greater. Venture backed companies account for 1.2% of total private sector employment; a ratio which is expected to increase to 3% by 2010. They represent 1.2% of total GDP and expect to account for 5% by 2010.

Thus, successful venture backed companies grow significantly faster than most other companies:

Employment in Danish venture backed companies grows by approx. 20% annually.
Revenue increases by a good 30 % on an annual basis.
Exports by venture backed expand by a stunning 37% each year.