Investment patterns

Investment activity

Since 1998 the Danish venture capital market has experienced stronger development than its international counterparts.

Major fluctuations have been seen in the international venture capital markets as a consequence of the extreme transaction levels up to the burst of the dot.com bubble. However it is important to note that Denmark stabilizes at a higher level compared to 1998 as oppose to both Europe and USA.

Types of investments and sectors targeted

In the period 2002-2004 the investors have been decreasingly focused on initial investments while placing increasing emphasis on follow-up investments. However this development has turned in 2005 where initial investments rose by 5 percentage points however not reaching the level from 2000 and 2001.

As regards the sector-wise distribution of venture investments, the Life Sciences sector and the ITC sector, respectively, are the primary targets for venture investments as illustrated below.

Geographical allocation

Companies located in the Greater Copenhagen area administer more than 90 per cent of the total capital under management, and approximately 60 per cent of all investments are allocated to projects placed in this region. The region especially attracts investments in the early development phases (i.e. seed and start-up) due to its high concentration of universities and innovative research environments.

For more information, download the fact sheet ”Venture Capital” here

Last updated on: 28-08-2007	<< Back   Top