The venture capital market in Denmark is relatively young compared to other European countries, but the kingdom has made a strong leap forward over the past 20 years. Local startups compete with each other in attracting investment, and they do so quite fiercely. The article, The Startup Kingdom: How Denmark Became an Entrepreneur’s Paradise, will tell you how to enter the Danish market.
H2 Register a startup in 15 minutes? Easy!
The Danish government not only supports big companies, but also develops startups, encouraging entrepreneurs to generate new ideas, create innovative projects and jobs.
In Denmark it is possible to register your own company quickly and without start-up capital with just 1 kroner, and it is tax exempt until its working capital exceeds 50 thousand kroner.
A company can be registered online within 15 minutes by submitting an electronic application and filling in all the required documents.
Related: Scandinavia Ranking High for Startups in Europe
The country’s government provides financial support to the most technologically advanced and innovative start-ups. Thus, assistance to companies over four years amounted to 128 million euros. The government’s initiative has also stimulated private investors, the amount of investment in startups has already exceeded the state 5 times.
By the way, Jean Hartley of custom writing service shared, that the Danish government appointed the world’s first “digital” ambassador of the Danish Foreign Ministry to interact with the world leaders of the IT-business, as the Danish government believes that the global IT-companies have become something like new countries and the state should respond accordingly.
The corporations themselves responded positively to the initiative. For example, IBM opens in Copenhagen a center for software development, and Apple and Facebook are building large data-centers in the country.
The corporations themselves responded positively to the initiative. For example, IBM is opening a software development center in Copenhagen, and Apple and Facebook are building large data centers in the country.
Related: What Scandinavians Can Teach Us About Work Culture
The interest of foreign corporations in Denmark is explained by:
- A low tax rate of 22% for foreign investors;
- Lower wage costs for employees;
- Energy benefits from renewable energy sources.
H2 How does startup support work?
Acceleration support for startups does exist in Denmark, and it works quite effectively. The kingdom has a number of acceleration programs and industry startup incubators. As a rule, these programs and gas pedals are not graded by country.
If a startup fits into a certain program and is promising, it will definitely be supported.
Danish acceleration programs help foreign entrepreneurs with special startup visas, office rentals and housing.
Startups that qualify for the three-month acceleration program receive €15,000 each to live in, a free office, and exclusive contracts from Google, Amazon, HubSpot, and SendGrid – for an average of €450,000.
How Denmark became an Entrepreneur’s paradise, read on….
H2 Examples of Accelerators
Gas pedals and business incubators in Denmark consolidate the best startups and provide them with conditions for growth – a co-working area, the opportunity for close interaction with the startup community, business angels, large venture private and public funds, and the corporate sector not only in Denmark but also in other countries.
The most demanded clusters are in IT, FinTech, CleanTech, HealthCare, BioTech.
- Founders House/Startup Village is an association of Scandinavian startups specializing in IT and high technology. Its residents are more than 100 innovative companies. A number of large Danish companies and organizations – Danske Bank and Nordea, NETS (mobile payment operator), Index Ventures – conduct regular workshops with the gas pedal residents and choose the best ones for cooperation.
- Copenhagen FinTechLab is Scandinavia’s leading financial technology incubator. It brings together more than 40 fintech start-ups. The incubator provides residents with not only office space and consulting services, but also an opportunity to present their projects to investors in the global hubs of fintech: Silicon Valley, London, Oslo, Helsinki, Stockholm and Singapore.
- European Blockchain Center. The center could be called an incubator for IT training with a course in blockchain technology. It developed a training course for Harvard Business School. In addition to theory, it includes cases of integrating blockchain solutions into business processes, using Deutsche Bank as an example.
H2 What do you need to know before entering the Danish market?
- Research the country;
- Get the necessary certificates and permits;
- Remember the Danish mentality.
The Danes are pragmatic and value their time, so during business negotiations focus on the main aspects – the economic benefits of the project, its features and advantages.
Related: Norwegian Startup Creation Platform in New York
We recommend not to drag out negotiations for more than 45-50 minutes, be punctual and have qualified specialists in your staff who are able to professionally conduct a dialogue in English or the language of the host country.
The Startup Kingdom: How Denmark Became an Entrepreneur’s Paradise, written exclusively for Daily Scandinavian by Jean Hartley. Jean is a professional writer for write my paper service. For 6 years now, she has been helping students learn to write correctly, and also assists in preparing for exams.
Feature image (on top) Photo by Brooke Cagle / Unsplash