41 initiatives to boost entrepreneurship and attract venture capital
41 initiatives to boost entrepreneurship and attract venture capital

Insight

41 initiatives to boost entrepreneurship and attract venture capital

Insight

41 initiatives to boost entrepreneurship and attract venture capital

The Danish government has unveiled 41 ambitious initiatives designed to cultivate a world-class ecosystem for entrepreneurship in Denmark. Among other things, the initiatives focus on enhancing access to venture capital domestically and internationally, implementing targeted tax reductions, and reducing administrative burdens on start-ups.

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The government aims to support Danish start-ups with growth potential in securing venture capital from both local and international sources. Whether you represent a life sciences company with an innovative idea for cancer therapies, a digital platform business with the newest technology for e-commerce, or a cleantech enterprise developing advanced solar energy solutions, you can benefit from Denmark’s ambitious strategy to boost entrepreneurship and innovation. 

 


Key initiatives of the strategy include:

  • Tax relief on dividends: Eliminating taxes on company dividends from unlisted shares. This will make investing in unlisted companies more attractive for both Danish and foreign investors and increase capital access.

  • Raised tax threshold: Raising the progression threshold for taxing individuals’ share income to encourage investment.

  • Deferred tax payments: Allowing deferred tax payments when the sales price is paid in instalments, addressing the so-called “phantom tax” issue and making it easier for entrepreneurs to scale and sell their business.

  • Realisation-based taxation: Offering the option to choose realisation-based taxation for newly listed shares for the first five years after going public, easing the immediate tax burden and potential liquidity strains. After five years, they switch to mark-to-market taxation, taxing unrealised gains accumulated during the initial period. 

  • Equity crowdfunding: Introducing the option for equity crowdfunding in private limited companies to enhance funding opportunities. This initiative creates a more accessible and flexible funding landscape and foreign businesses can more easily secure the needed capital to launch and expand operations in Denmark. Additionally, the streamlined funding process reduces barriers to entry, making Denmark an even more attractive destination for businesses seeking a dynamic, supportive environment.

  • Green venture capital: Boosting access to green venture capital by injecting DKK 2 billion into Denmark’s Export and Investment fund, EIFO.

Invest in Denmark supports these initiatives, collaborating with EIFO, municipalities, clusters, and universities among others to attract, develop, and retain foreign investments in Denmark focusing on Denmark’s stronghold sectors. With these new initiatives, Denmark is more suited than ever for welcoming innovative businesses to the country. 

Learn more about the 41 initiatives on the Ministry of Industry, Business, and Financial Affairs’ website here (in Danish). 

get in touch

Want to get advice on how you can benefit from these 41 initiatives?

Invest in Denmark provides free-of-charge confidential and tailor-made solutions for foreign companies looking to set up a new business in Denmark or expand an existing one. Please contact one of our experts here:  

Copenhagen

  • Sarina Lohmann

    Title: Special Advisor – Maritime and transport – Analysis & Partnerships

    Area: Copenhagen

    Phone: +4533920423

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