Traditional Capital Raising - Denmark

The country of Denmark is expected to see the Total Capital Raised in the Traditional Capital Raising market market reach US$659.60m in 2024.
Venture Capital is set to dominate the market with a projected market volume of US$599.20m in 2024.
When compared globally, the United States is anticipated to generate the most Capital Raised at US$159.0bn in 2024.
Denmark's capital raising market sees a surge in traditional methods like IPOs and bond issuances to fund growth for local businesses.

Definition:

The Traditional Capital Raising market relates to venture investment in startups and emerging companies that are not yet generating positive or significant revenue but have high growth potential. The capital is mostly raised from venture financial institutions, and minorly from banks.

Structure:

The market consists of two segments:
- The Venture Capital market refers to private equity funding that is offered to startups and emerging companies.
- The Venture Debt market refers to the combination between equity and debt financing, which is used to finance the early stage and growth stage capital-backed companies.
The market data comprises of the amount of capital raised, number of deals, and average deal size.

Additional information:

Although the Traditional Capital Raising market is highly competitive in investment opportunities due to the rapidly high growth rate of startups and emerging companies, it has become more popular for these businesses who cannot get traditional loans from banks, to develop and grow their businesses or projects.
Key players in this market are companies such as Sequoia Capital and Hercules Capital.

Use the info button next to the boxes for more information on the data displayed.

Venture Capital
Venture Debt

Traditional bank loans
Digital capital raising

The Traditional Capital Raising market in Denmark has seen significant development and growth in recent years.

Customer preferences: One of the main reasons for this growth is the increasing preference among Danish companies to raise capital through traditional methods. Many businesses in Denmark still prefer to raise capital through bank loans or by issuing bonds, rather than seeking funding from venture capitalists or through crowdfunding platforms. This preference for traditional capital raising methods can be attributed to the stability and reliability associated with these options.

Trends in the market: Another trend in the Danish Traditional Capital Raising market is the increasing use of bonds as a means of raising capital. Danish companies have been tapping into the bond market to secure long-term financing at attractive interest rates. This trend can be attributed to the low interest rate environment in Denmark, which has made borrowing through bonds an attractive option for companies. Additionally, the Danish bond market has become more accessible to small and medium-sized enterprises (SMEs) in recent years, allowing them to access capital that was previously only available to larger corporations.

Local special circumstances: Denmark has a well-developed banking sector, with a number of large banks that have a strong presence in the country. These banks have a long history of providing financing to Danish businesses, and many companies have established relationships with these banks. This has created a strong network of financial institutions that are willing to provide capital to businesses in Denmark, further driving the preference for traditional capital raising methods.

Underlying macroeconomic factors: The stability of the Danish economy and the low interest rate environment have also played a role in the development of the Traditional Capital Raising market. Denmark has a strong and stable economy, with low inflation and low unemployment rates. This has created a favorable environment for businesses to raise capital, as investors have confidence in the Danish market. Additionally, the low interest rate environment has made borrowing more affordable for companies, further encouraging capital raising through traditional methods. In conclusion, the Traditional Capital Raising market in Denmark has experienced significant growth and development in recent years. The preference for traditional capital raising methods, the increasing use of bonds, the well-developed banking sector, and the stable macroeconomic environment have all contributed to this growth. As the Danish economy continues to thrive, it is likely that the Traditional Capital Raising market will continue to expand and evolve.

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on the amount of capital raised, the average of deal size and the number of deals.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use data from OECD, annual financial reports of key players, industry reports, third-party reports, publicly available databases, and survey results from primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, CPI, number of small and medium-sized enterprises (SME), new businesses registered (number) . This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

Venture capital is the term used to call the financial resources provided by investors to startup firms and small businesses that show potential for long-term growth. It has become a very important source of capital for entrepreneurs, who often have problems with financing their needs through risk-averse banks. Venture capital investments incorporate a high level of risk as only some of the VC-backed companies develop into successful and highly profitable businesses. In 2020, the leading venture capital backed company worldwide was the Manbang Group, which based in Nanjing, China.