How Business Angels Shape the Danish Startup Ecosystem (EIFO - Export and Investment Fund of Denmark)

Summary

• The top 10% of investors account for roughly 60% of total invested capital.p.3
• About 8% of business-angel-backed companies graduate to venture capital within five years.p.3
• Business angels alone accounted for around 13% of total invested capital in 2025.p.6
• After a decade of growth peaking in 2023, both invested capital and the number of active business angels declined sharply in 2025.p.7
• The Capital Region received DKK 9,671 million (63%) of regional invested capital.p.10
• Around 30% of business-angel-backed companies go bankrupt while an equal share achieve significant growth.p.13

Key insights

1. A business angel is defined as a private individual who invests personal wealth directly into early-stage companies and participates in at least one investment round of minimum DKK 1 million.p.5
2. A weak first half for Danish venture capital, rescued only by a handful of large rounds in the second half, suggests the decline in business angel activity is part of a wider market contraction.p.7
3. Enterprise software and design consistently raise the most rounds, as both verticals are capital light with limited upfront investment needs.p.9
4. Energy and CCUS held firm in 2025 despite a broader fall in green investment.p.9
5. The most active 10% of business angels deploy nearly 60% of all business angel invested capital.p.11
6. The top 1% of angels stand apart on ticket size, founder experience and graduation outcomes.p.12
7. Most graduations to venture capital happen in year 2 and 3 after the first business angel investment.p.13
8. Business angels who participated in at least 1 round of DKK 1 million or more are included in the analysis.p.15