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Financing, investment and government support

Government support

Does the government provide any incentives or support programmes to promote fintech innovation in your jurisdiction (eg, tax incentives, grants and regulatory sandboxes)?

The Danish government's support schemes are primarily organised through the following funds:

  • The Innovation Fund Denmark – ( currently operates several schemes the most relevant of which are:
    • InnoBooster offers grants of up to Dkr5 million to "knowledge-based innovative projects from small and medium sized companies, start-ups and scientists"; and
    • Grand Solutions offers grants to "highly ambitious research and innovation projects across the entire research and development value chain with regards to economic value, creation of new jobs innovative approaches to societal challenges".
  • The Danish Growth Fund – ( also operates several different schemes including:
    • loans where the Danish Growth Fund makes subordinated loans of Dkr1 million or more to economically sound small and medium-sized enterprises as part of "an integral part of a complete financing solution that includes financing from banks and other financial institutions", but where the company's own collateral is insufficient to obtain the full financing from private sources;
    • loans for entrepreneurs which are subordinated loans of Dkr1 million or more to "young, established companies" who have live products, positive turnover and a customer base but whose collateral is no longer sufficient to secure full financing from private sources. It is a requirement that there is a minimum of 50% private co-financing that that the entrepreneurs owning the company assume personal liability for the outstanding debt; and
    • subordinated loans which are made for the purpose of supporting a company's equity. The minimum amount of a subordinated loan is Dkr2 million and it "must be part of a complete financing solution that includes financing from banks or other lenders". Among the eligibility criteria are that the company must generally have a turnover and a balance sheet of at least Dkr20 million and the solidity must be at least 10% (and preferably 25% or more after obtaining the subordinated loan).
  • Venture capital which is venture capital from the Danish Growth Fund's venture capital arm VF Venture.

In addition to the above funding schemes, the Financial Supervisory Authority will open its newly created regulatory sandbox in 2018. In terms of purpose and eligibility criteria, the new sandbox is similar to the existing sandbox operated by the UK Financial Conduct Authority.

Has the government concluded any international cooperation agreements to promote and facilitate the cross-border expansion of fintech businesses?

The Financial Supervisory Authority has entered into an agreement for a ‘fintech bridge’ with the Monetary Authority of Singapore the purpose of which is to aid Danish and Singapore fintech firms in accessing each other's markets.

The Financial Supervisory Authority also participates in a newly created "Nordic roundtable" focusing on fintech and EU Payment Services Directive 2 in the Nordic region.

Financing and investment

What private financing and investment schemes are available and commonly used for fintech start-ups in your jurisdiction?

Denmark has traditional business angel, venture capital and private equity communities based on individual private contracts. No widely used private multilateral or open door funding schemes are available in Denmark.

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