EIF and The Danish Growth Fund to launch DKK 200m Business Angels Fund in Denmark

EIF and The Danish Growth Fund have signed an agreement to launch the Danish compartment of European Angels Fund (EAF Denmark) this year, which will support business angels’ SME financing activities through co-investments. The Fund will be advised by EIF in cooperation with The Danish Growth Fund as a sub-advisor and is part of the pan-European initiative European Angels Fund (EAF).

EAF Denmark is a co-investment fund and therefore funds Business Angels and other non-institutional investors wanting to invest into innovative small and medium-sized enterprises (SMEs).

The European Angels Fund establishes Co-investment framework agreements (CFAs) granting a predefined amount of equity for co-investments upfront to each Business Angel for future investments. All investment decisions will be taken by the Business Angels and their investments will be matched on a pari-passu basis, i.e. by the same amount by the European Angels Fund. The volumes available in total under an individual CFA range between EUR 250k and EUR 5m.

EIF Chief Executive, Pier Luigi Gilibert said: “We are delighted to be partnering with The Danish Growth Fund in launching the EAF in Denmark. Business Angels can benefit from significant financial support for their investment activity while maintaining maximum freedom to operate. Through the European Angels Fund, Business Angels can draw on the expertise and network of the European Investment Fund. In addition to our support for micro-companies and larger innovative SMEs with The Danish Growth Fund we are pleased that another funding source can be made available in Denmark for the benefit of Danish businesses which can further develop the Danish venture capital and entrepreneurship ecosystem.”

Christian Motzfeldt, CEO of the Danish Growth Fund said: “The goal of the fund is to bring risk capital to the market as well as make it more attractive for Danish Business Angels to invest in Danish small and medium-sized enterprises. In recent years we have seen Danish Business Angels and entrepreneurs create such successful companies that they now have the opportunities to both invest and utilize their knowledge in new companies. These are some of the competencies we wish to bring into play with this new fund”.

The establishment of the program is still subject to regulatory approval, however, The Danish Growth Fund and EIF have already started sourcing and would invite experienced BAs to apply via its website at: www.eif.org/eaf.

More information

About the EIF

The European Investment Fund (EIF) is part of the European Investment Bank group. Its central mission is to support Europe's micro, small and medium-sized businesses (SMEs) by helping them to access finance. EIF designs and develops venture and growth capital, guarantees and microfinance instruments which specifically target this market segment. In this role, EIF fosters EU objectives in support of innovation, research and development, entrepreneurship, growth, and employment.

About The Danish Growth Fund (Vækstfonden)

The Danish Growth Fund is a state investment fund that contributes to the creation of new companies by providing capital and expertise. Since 1992, The Danish Growth Fund has, together with private investors, co-financed growth in more than 6000 Danish companies with a total commitment of more than DKK 17 billion. The Danish Growth Fund invests equity and provides loans and guarantees for small as well as medium-sized enterprises in collaboration with private partners and Danish financial institutions.

Press contacts:

EIF: David Yormesor
Tel.: +352 24 85 81 346, e-mail: d.yormesor@eif.org

Peter Bruun, Head of Communication at the Danish Growth Fund
Tel.: +45 40 81 35 46, e-mail: pbr@vf.dk