Danish investments peak in Europe

Denmark is the European country where funds donate the most money to new businesses. That is a sign of growth, reports business.dk.

Denmark is the European champion when it comes to investments in new businesses. In 2011, Danish venture funds invested DKK 1.7 billion in start-up companies.

This figure is equivalent to 0.065 percent of GDP, which is higher than in any other European country, according to a new statement of activities among European investment funds.

Last year Denmark finished second. According to Vækstfonden that has helped prepare the Danish contribution to the statement, taking the step to the top ranking is “extremely important” because it indicates a renewed desire to focus on innovation: “This is about growth and job creation, and the potential could be even bigger than what we are looking at now”, says CEO of Vækstfonden, Christian Motzfeldt.

An important reason for the improved ranking is the successive governments’ desire to maintain a focus on growth and value creation in new enterprises, estimates William Stevens, CEO of the knowledge bank of entrepreneurship, Europe Unlimited.

“Due to changing governments, most other European countries change their policy within this area every seven years. That makes those countries lag behind. The support of private investors requires political persistence. And this is Denmark capable of” says William Stevens, former director of the European Private Equity and Venture Capital Association, EVCA.

The state fund Vækstfonden is still directly or indirectly involved in about 80 percent of the Danish venture capital investments. As a result, Danish venture capital investments are primarily funded by tax revenues. If Denmark is to maintain its leadership, Danish investment funds must prove their profit capacity and thereby increase their chance of attracting more private investors.

This is an excerpt. Read the article (IN DANISH) from www.business.dk here