DENMARK Law and Practice Contributed by: Poul Guo, Martin Søndergaard, Patricia Rasch and Jonas Miller Rasmussen, Moalem Weitemeyer
1. Trends 1.1 VC Market
Deal terms have evolved, in response to the subdued global VC market. Valuations are more conservative, resulting in lower dilution for founders, while convertible notes are being used more frequently to provide flexibility. Investors are also incorporating milestone-based fund - ing structures to ensure that capital is deployed efficiently. Exit provisions, including stronger liq - uidation preferences, have gained importance, and VCs are securing greater governance rights, such as board seats or observer rights, to main - tain oversight. Additionally, ESG considerations remain a sig - nificant factor in investment decisions, with a growing focus on sustainability, particularly in clean energy and the circular economy. Overall, while the Danish VC market mirrors global trends of increased caution, it remains resilient, emphasising sustainable growth, profit - ability and clear value propositions in an increas - ingly selective funding environment. 1.3 Key Industries Between February 2024 and February 2025, Denmark’s VC activity was primarily driven by the technology, life sciences and renewable energy sectors. The technology sector – particu - larly fintech and enterprise software – attracted substantial investment, reflecting increasing digitalisation and financial innovation. Life sciences, with a strong focus on biotech - nology and health tech, continued to benefit from Denmark’s position as a hub for medical research and innovation. According to the Export and Investment Fund of Denmark, more than 60% of total Danish VC in 2023 was invested in the life sciences sector. Meanwhile, the renew - able energy sector – especially wind energy and cleantech – experienced heightened VC interest,
Notable transactions related to venture capital (VC) during the past 12 months include the fol - lowing. • Flatpay, founded in 2022 by serial founders Sander Janca-Jensen, Rasmus Busk, Ras - mus Hellmund Carlsen and Peter Lüth, is a Danish payment solutions provider for SMEs. Flatpay raised EUR45 million in a Series B funding round led by Dawn Capital, with par - ticipation from existing investor Seed Capital and other investors. • Adcendo, a biotech company focused on the development of first-in-class ADCs for the treatment of cancers, closed an oversub - scribed EUR128 million Series B financing round led by TCGX. • Orbis Medicines, a Denmark-based company involved in oral macrocycle drug discovery, announced the close of a EUR90 million Series A funding round led by New Enterprise Associated, bringing the total amount raised by the company to EUR116 million. 1.2 Key Trends Over the past 12 months, the Danish VC mar - ket has adapted to global economic uncertainty, leading to several key trends. Investment selectivity has intensified, with VCs prioritising start-ups that demonstrate clear paths to profitability and proven business mod - els, particularly in sectors such as cleantech, health tech and AI. Downrounds have become more common as valuations adjust, and there is an increased emphasis on profitability and cash flow rather than rapid growth. Due diligence processes have also become more rigorous, extending negotiation timelines.
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