Denmark has one of the lowest levels of venture capital investment as a share of GDP among OECD countries. The Danish government tried a number of supply-side initiatives in the 1990s with varying degrees of success. Problems stem from a lack of equity investment culture, the high levels and complexity of taxes, a dominant role played by banks in venture financing, and few contributions from other institutional investors. A new strategy focuses on providing seed capital to start-ups through a reorganised government equity fund and technology incubators. The challenge is to build on this momentum to further diversify early-stage financing and deepen the entrepreneurial culture. This paper analyses trends in Danish venture capital markets and makes policy recommendations which have been developed through an OECD peer review process.
Venture Capital Policies in Denmark
