Despite a slight decline, Danish startups continue to attract significant venture capital, although competition for the largest funding rounds has intensified. This is one of the key findings of EIFO’s annual report, From Startup to Scaleup 2026.
The findings were highlighted at TechBBQ 2026 in Copenhagen, where the strong position of life science was also emphasised, with the sector remaining the largest recipient of venture capital in Denmark.
Danish startups continue to attract substantial amounts of venture capital. Although venture investment declined slightly in 2025 and during the first half of 2026, Danish startups attracted approximately EUR 3.4 billion in venture funding between 2023 and 2025. This places Denmark among Europe’s five most venture-intensive economies relative to GDP.
Life Science remains the largest recipient of Danish venture capital: Venture Investments by top 12 Verticals, 2020–2026H1 (Source: EIFO)
Venture Capital Investment Volumes in Danish Companies by Stage, 2019–2025H1 (Source: EIFO)
These findings come from ‘From Startup to Scaleup 2026’, EIFO’s annual report of developments in the Danish capital markets for startups and scaleups.
Global venture capital investment increased by 31 percent in 2025, driven largely by strong growth in North America.
Growth in Europe was more moderate, yet Denmark maintained its position among the five most venture-intensive countries, behind Sweden, the United Kingdom, Finland, and Switzerland.
According to the analysis, Danish investments remain concentrated in the early stages of growth.
We have seen a slight decline, but Denmark has nevertheless maintained its position as a strong
venture market. This demonstrates that investors continue to believe in the growth potential of
Danish companies, and so do we.Erik Balck Sørensen, Chief Investment Officer at EIFO.
More than four out of five venture investments were made in pre-seed, seed, and early-stage companies, underlining investors’ continued willingness to finance new and innovative businesses. Investors are becoming more selective in the later growth phases While the majority of investments continue to flow to startups in the early stages of growth, the report also shows that more mature growth companies continue to attract substantial capital.
Growth-stage funding rounds accounted for 50 percent of all venture capital invested in 2025.
At the same time, the analysis points to a more cautious market for larger growth companies. The share of the largest investment rounds, exceeding EUR 6.7 million, fell from 34 percent in 2024 to 27 percent in 2025 and further to 22 percent in the first half of 2026. According to the report, this reflects a market in which investors have become more selective in later-stage funding rounds.
“In Europe, we have become much better at financing new startups. Today, the challenge is increasingly found in the later growth stages, where companies need to raise larger amounts of capital to scale globally. At the same time, investors have become more selective, intensifying competition for capital,” says Erik Balck Sørensen, Chief Investment Officer at EIFO, who therefore welcomes the recent launch of the Scaleup Europe Fund, in which EIFO is among the anchor investors.
“We see strong potential for Danish scaleups in the Scaleup Europe Fund, but more is of course needed, and we are also working on additional solutions,” he adds.
This year’s report also shows that financing conditions for Danish small and medium-sized enterprises have gradually improved.
Following a period of elevated interest rates and more challenging access to financing, lower inflation and interest rate cuts have made it easier and less expensive for companies to borrow for investment and growth. However, the picture has become more nuanced in 2026, as rising energy prices have pushed inflation upwards again and renewed geopolitical uncertainty is affecting the economic outlook.
Developments in financing conditions point in several directions. On the one hand, Danish banks expect to ease credit standards for SMEs further in the third quarter of 2026. On the other hand, the interest rate increases introduced by the European Central Bank and Danmarks Nationalbank in June may dampen demand for financing during the second half of the year. This makes it difficult to assess how financing conditions will develop over the coming year, while also highlighting the importance of ensuring that innovative companies have access to multiple sources of funding.
One example is EIFO’s Match Loan, which is widely used by early-stage startups. Through Match Loans, EIFO can match investments from business angels and other early-stage investors, thereby providing additional capital to companies in the early phases of their development.
We are pleased that EIFO has strengthened its position in supporting the commercialisation of innovative startups. Our ability to match investors’ capital contributions in early-stage companies helps accelerate their development. At the same time, we reduce the risk for investors and attract a broader group of investors who can invest in early, innovative companies,
Signe Thustrup Kreiner, Chief Commercial Officer at EIFO.
Since the Match Loan programme was relaunched in March last year, EIFO has disbursed 151 Match Loans with a total value of DKK 207 million.
The analysis is being presented in connection with TechBBQ, the annual gathering of the Nordic tech startup ecosystem, held at Bella Center Copenhagen.
Picture: Chief Investment Officer, Erik Balck Sørensen, and Chief Commercial Officer, Signe Thustrup Kreiner.
Source
eifo.dk
