EIF IN
DENMARK
Investing in the future of Danish SMEs
Small and medium-size enterprises are the heart of the Danish economy.
Representing 99% of all businesses and more than two thirds of the workforce, Denmark's 233,000 SMEs are responsible for driving innovation as well as spurring on growth, and their daily routine is what ensures the competitiveness of the Danish economy. But to do that, they often need finance.
At the same time, as the smallest actors in the economy, they are often the hardest hit when the economy encounters turbulence, which is why it is so crucial for them to have financial options in order to maintain and eventually grow their businesses.
At the EIF, our mission is to improve access to finance for small businesses across the EU. In Denmark, we have been supporting SMEs using a broad range of instruments, including many tailored to the needs of the Danish market and designed with the Danish government and local authorities.
As a result, we've been able to support more than 4,500 Danish businesses, ranging from companies developing novel medicines for inflammatory diseases, a local Copenhagen café, and art-buying services, making sure they have the financial fuel they need to pursue their ambitions.
Our intention is to continue to extend this type of support to the Danish market, making access to finance easier as we collectively move towards a greener, digital and more inclusive Europe.
Success stories
UNION Therapeutics
Success stories
UNION Therapeutics
“In the course of our research, we discovered that niclosamide has very interesting properties in that it reduces the ability of overactive cells to produce energy. We saw how it could also be used for both anti-inflammatory and anti-viral purposes, and we were keen to explore this more,” explains Dr Rasmus Toft-Kehler, co-founder of UNION, a Danish bio-pharmaceutical company dedicated to the discovery and development of novel medicines targeting inflammatory and infectious diseases.
When studies identified niclosamide in 2020 as the most potent FDA-approved inhibitor of SARS-Cov-2 - the virus causing COVID-19, UNION shifted gears, launching a programme to test the salt form of niclosamide as a treatment for COVID-19 in collaboration with Institut Pasteur Korea. “What’s interesting is that niclosamide works on the host cell, not the virus, so it’s difficult for the virus to develop resistance. This could be the perfect stockpiling product and can be easily scaled to cover all of Europe. Ultimately, this can help to avoid lockdowns and the economic disasters we’ve seen,” Rasmus notes.
Sophiagård Elmehøjen
“All people need to feel some kind of meaning in what they are doing,” explains head mistress Anja Grage. “It’s important that they see they have a role in society, that society needs the work they can do.” Sophiagård Elmehøjen is one such place—a home and working community for persons with intellectual disabilities in the village of Ølsted in Funen. “We have a series of workshops for our residents and they can also work on the farm, enhancing their confidence and helping to create a sense of purpose and identity."
Anja is flanked by 40 co-workers, pedagogues, administrative and technical staff who make the organisation tick on a daily basis, supporting its residents 24/7: “We always focus on what they are able - not unable - to do. Sometimes they need guidance, or pedagogical support, or maybe we might have to adapt the machinery for them. But with a bit of patience, we can help them evolve and develop. It makes all the difference.”
Artboost
“Historically, art has been largely reserved for a small elite. We want to change that and democratise art,” says Anders Cederholm, co-founder of Artboost, an online platform that connects buyers directly to artists, boasting 8000 artists and users in 130 countries. By-passing galleries and auction-houses, Anders wants to make art more affordable and accessible to everyone.
Anders grew up surrounded by art – his uncle a collector “with art from the floor to the ceiling of his house. Whenever I paid a visit, I was always fascinated.” This passion stayed with him, resulting in Artboost. “It’s not just a marketplace, it’s an ecosystem to get more art into the world. The platform uses AI to generate more traffic for artists’ pages, matching users with artwork they might.” Since launching in 2014, the company have sharpened their B2B offering. “The art-for-offices business is thriving. Scientifically, it’s a proven way to raise employees’ productivity. It makes them more creative and less stressed.”
Fuglekvarterets Fælleskafé
“The point is to inspire people to expand their perspectives, to think differently foodwise—not in a didactic, educational way, but really through inspiration,” says Paula Taina, Manager of Fuglekvarterets Faelleskafe, a café in Nordvest, Copenhagen founded in 2019 as an association of 15 local individuals with a vision to make a difference.
“We wanted to create a place where all people could get together to enjoy a good coffee, in a sustainable environment. There’s very few other eatery or coffee places in this neighbourhood, so we saw ourselves as a cultural meeting point too. We do a lot more than just serve coffee, from knitting café to lectures, choir practice or events for kids – all for free.” now manages the café in conjunction with being a mum, and particularly enjoys being creative in the kitchen: “We’re very anti-food waste, so we have a rule that all ingredients need to go into at least two items.”
Reform Furniture
“Design is at the heart of Reform”, says Michael Andersen, co-founder of Reform furniture, “Buying a kitchen used to mean choosing between affordability and style. Our goal was to overcome that and allow people with an interest in stylish kitchens to be able to get one with an affordable price tag.”
Launched in 2014, Reform guides people through the process of purchasing an Ikea kitchen. Next, they strip down the cabinets and replace the Ikea surfaces with luxury finishings, creatively delivering a designer kitchen at a fraction of the price. “Many designers just want to make kitchens for normal people,” he adds.
Today, the company has employees spread across numerous countries and is on a growth trajectory. “The hardest part is probably now,” Michael explains, “We’ve now gone from start-up to running a big business and we have to deal with all the organisational and management issues that come with that. This is a new challenge. In comparison starting up was not that hard.”
Vrigsted Efterskole
Dyslexia, a learning difficulty affecting many people’s ability to read and write, can also have psychological impacts. “Students know that they have a disability that holds them back, so they often feel inferior inside and outside the classroom, and their self-esteem drops,” explains Kirsten Weile, the headmistress of Vrigsted Efterskole, a specialised private high school for dyslexic students.
“We adapt the national curriculum to the specific needs of our students and give them the tools to deal with their dyslexia outside our premises,” explains Kirsten. “Our aim is to help our students bring out their best and provide an environment in which they feel comfortable to make mistakes and learn from them. Does it work? No doubt about it. Our kids go back into the main educational system, and they achieve good results. They are able to succeed in national examinations and get into technical schools or even university,” Kirsten adds.
Key figures
Over
of EIF financing
Transactions with financial intermediaries
Equity investments since inception
Guarantees support since inception
made available for
Danish businesses
Mandates in focus
The EIF continues to deploy capital in Denmark under a wide range of strategic programmes and mandates. Below are brief summaries of our main initiatives in Denmark.
InvestEU
The InvestEU programme provides the EU with crucial long-term funding by leveraging substantial private and public funds in support of a sustainable recovery. It is helping to mobilise private investments for the EU's policy priorities, such as the European Green Deal and the digital transition. The InvestEU Programme brings together under one roof the multitude of EU financial instruments previously available to support investment in the EU, making funding for investment projects in Europe simpler, more efficient and more flexible. The programme consists of three components: the InvestEU Fund, the InvestEU Advisory Hub and the InvestEU Portal. The InvestEU Fund is implemented through financial partners that will invest in projects using the EU budget guarantee of €26.2 billion. The entire budget guarantee will back the investment projects of the implementing partners, increase their risk-bearing capacity and thus mobilise at least €372 billion in additional investment.
RCR
The EIB’s Risk Capital Resources (RCR) is the core pillar of the EIF’s equity activity. It has enabled us to pursue our equity strategy in the venture capital and growth segments for more than 25 years. In 2023, RCR accounted for 25% of our equity activity, committing €1.4bn to financial intermediaries.
EFSI
The European Fund for Strategic Investments formed part of the EU's Investment Plan for Europe, launched by the European Commission in 2015. EFSI addressed market gaps in financing - whether in infrastructure, research, energy efficiency or risk finance for SMEs – and mobilised private investment into these areas. Through EFSI the EIF deployed €10.5bn in resources of the European Commission, the EIB and the EIF to improve access to finance for SMEs and small midcaps.
REPowerEU
The EU launched REPowerEU in 2022 to reduce dependence on fossil-fuel imports and accelerate the green transition. To support the plan, in October 2022, the EIB Group developed a package of measures focussing on renewable energy, energy efficiency, electricity networks and on deepening its engagement in green innovation and breakthrough technologies. Under REPowerEU, the EIF will invest €4.5bn by 2027 through EIF equity products.
EGF
The European Guarantee Fund was created by the EIB Group with contributions from Denmark and other Member States to protect companies struggling in the crisis caused by COVID-19. With almost €25bn in guarantees, the EGF allowed the EIB and EIF to swiftly offer companies, mostly SMEs and mid-caps, access to loans, guarantees, asset-backed securities, capital and other financial instruments. The EGF forms part of the package of recovery measures put in place by the EU, with the objective of providing a total of €540bn to support the hardest hit sectors of the European economy.
EAF - Denmark
EAF - Denmark is a DKK 200m co-investment initiative funded by the EIF and Vækstfonden (now the Export and Investment Fund of Denmark - EIFO). Established in 2016, it represents the component of the European Angels Fund (EAF) focusing on investments in Denmark. The initiative is advised by the EIF in cooperation with Vækstfonden as a sub-advisor and aims at providing equity to Business Angels and other non-institutional investors to finance innovative or technology-oriented companies in the form of co-investments.