The Startup Ecosystem of Denmark

Denmark is well known as a progressive country with a high quality of life and talented entrepreneurs, backed by lean regulations that provide tax benefits and minimize red tape. It’s no coincidence that global leaders in various fields, like shipping giant Maersk, are based in Denmark; the potential of Danish entrepreneurs to lead global companies is high. Danish founders are fully capable of building massive startups with global impact, evidenced by the success of Danish companies like Zendesk and Unity. When reaching maturity, however, such companies tend to move their operations to other countries, mainly the United States.
According to the European Commission, Denmark is regarded as an innovation leader in Europe, thanks to extensive research and development programs focused on innovation and entrepreneurship, as well as a pool of intelligent, aspiring people. Denmark is also the most digital country in Europe, according to the UN’s E-Government Survey 2022, and the home of many knowledge-intensive industries such as ICT, Life Science, and Cleantech. Denmark’s capital, Copenhagen, connects Europe, Scandinavia, and the Baltic nations, creating a link to a market with more than a hundred million consumers.
Startups in Denmark have access to a range of both private and public funding opportunities. Publicly funded initiatives include Innovation Fund Denmark, which invests in new initiatives to create growth and employment, and The Danish Growth Fund, aimed at promoting the creation and growth of new companies through investments, loans, and guarantees. The Danish government has also initiated Startup Denmark, a startup visa scheme, as the one-point-of-entry for talented non-EU/EEA entrepreneurs to relocate and grow high-impact start-ups in Denmark. Moreover, Digital Hub Denmark connects and facilitates relationships between ecosystem stakeholders in an effort to make the country Europe’s leading digital hub.
The Danish startup ecosystem, however, has yet to fulfill its true potential. Some of this missed potential can be attributed to an increased focus on topics such as gender balance and employee rights, which are critical for established businesses, yet delay the growth of startups working in a chaotic environment. In addition, the high cost of living and the costs of wages come as a drawback for entrepreneurs.
However, the Danish public sector is supportive of its entrepreneurs, even to the point of introducing them to investors and potential partners.
Outstanding innovation initiatives are happening in Denmark. One of the notable examples is the city of Odense, which has become a key innovation hub for robotics, drones, and automation, and has also caught the attention of international investors. Moreover, the startup ecosystem of Aarhus is flourishing as its startups attract more funding. Backed by multiple support organizations such as The link and Startup Aarhus, this ecosystem keeps producing highly valued startups. Denmark is also attracting the spotlight through its growing startup tech event TechBBQ, which gives a boost to the local startup ecosystem and its connection to the world.