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Home > Country fiches > Country fiche for Denmark

Country fiche for Denmark

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General information

As the Danish market for Crowdfunding is very limited, there is currently no regulatory regime that is specifically adapted to Crowdfunding in Denmark. However, the Danish Financial Supervisory Authority’s guidance from November 2013 has brought guidance on the interpretation of the financial regulation with regard to Crowdfunding.

AF market volume per capita
Do you know about crowdfunding in Denmark? Tell us what you know using the comment below.
  • Role of alternative finance
  • Regulatory Context
  • Support policies
  • Additional insight

Role of alternative finance

Overall size of the market: 

In Denmark € 24m were raised through crowdfunding in 2015.

Zhang, B. et al (2016): Sustaining Momentum. The 2nd European Alternative Finance Industry Report. Cambridge University. https://www.jbs.cam.ac.uk/fileadmin/user_upload/research/centres/alterna...

Total Transaction Value in the "Crowdfunding" segment amounts to mUSD 9.4 in 2016.
https://www.statista.com/outlook/335/133/crowdfunding/denmark#market-tra...

Trend:
Total crowdfunding platforms: 

7 crowdfunding platforms were active in the country in 2014.
source: European Commission (2015). Crowdfunding: mapping EU markets and events study. 30th of September

  Evidence
Equity-based crowdfunding

The first Equity-based crowdfunding platform has been launched in 2016. The platform is Crowdinvest (https://www.crowdinvest.dk/).
(Source: expert opinion, Flemming Binderup Gammelgaard)

Reward and donation-based crowdfunding

Rewards-based Crowdfunding (€ € 2.5m in 2015)
Donation-based Crowdfunding (€ 2.3m in 2015)
Zhang, B. et al (2016): Sustaining Momentum. The 2nd European Alternative Finance Industry Report. Cambridge University. https://www.jbs.cam.ac.uk/fileadmin/user_upload/research/centres/alterna...

Lending crowdfunding

Peer-to-Peer Business Lending (€ € 7.8m in 2015)
Zhang, B. et al (2016): Sustaining Momentum. The 2nd European Alternative Finance Industry Report. Cambridge University. https://www.jbs.cam.ac.uk/fileadmin/user_upload/research/centres/alterna...

Others

The volume of Invoice Trading amounted to € 11.8m in 2015.

Source:(Zhang, B. et al (2016): Sustaining Momentum. The 2nd European Alternative Finance Industry Report. Cambridge University. https://www.jbs.cam.ac.uk/fileadmin/user_upload/research/centres/alterna...)

In the country, there is a platform for real estate crowdfunding. The platform is BrickShare (http://www.brickshare.dk/ ).
(Source: expert opinion, Flemming Binderup Gammelgaard)

Regulatory Context

  Evidence
Is there a specific national regulation in place applying to crowdfunding?

No

General regulation

The Danish regulatory framework remains as outlined in a 2013 memorandum from the Danish Financial Services Authority (FSA) and a 2015 report from the Ministry of Business and Growth. They focus on:
-Prospectus requirements
-Platform registration requirements (including capital requirements)
- Company requirements (private limited companies are not permitted to equity crowdfund as opposed to public limited companies)
- AML & CFT (Anti-Money Laundering & Combating the Financing of Terrorism)

According to the 2015 report from the Ministry of Business and Growth, lack of transparency on the regulatory framework is the biggest obstacle to crowdfunding in Denmark. However, it identifies no other barriers and therefore no need for further regulation of the industry 

(Source: expert opinion, Flemming Binderup Gammelgaard)

- If a Crowdfunding platform facilitates the offering of securities or investment products, the operator of the platform renders financial services which are subject to a licensing requirement.
- Donations or Rewards Models do not involve any form of financial investment or financial return and therefore are not within the scope of the Danish financial regulation, but only subject to additional regulation.

Osborne Clarke Germany (2016): Review of Crowdfunding Regulation & Market Developments. In: CrowdFundRES - Unleashing the potential of Crowdfunding for Financing Renewable Energy Projects. Deliverable 3.1 (PU).
http://www.crowdfundres.eu/wp-content/uploads/2016/06/CrowdFundRES-Crowd...

Prospectus requirement

Prospectus requirement for the offering of securities or investment products.
Threshold: EUR 1.000,000 per issuer within 12 months.

Osborne Clarke Germany (2016): Review of Crowdfunding Regulation & Market Developments. In: CrowdFundRES - Unleashing the potential of Crowdfunding for Financing Renewable Energy Projects. Deliverable 3.1 (PU).
http://www.crowdfundres.eu/wp-content/uploads/2016/06/CrowdFundRES-Crowd...

Support policies

Overview: 

The new strategy from the Danish Venture Capital and Private Equity Association (“Iværksætter Nation 4.0”) is proposing to turn seed investment into a national cause through crowdfunding. More specifically, the DVCA is proposing the adoption of investment schemes like the British Seed Enterprise Investment Scheme (SEIS), and match funding by way of government loans or grants to crowdfunded startups.

(Source: expert opinion, Flemming Binderup Gammelgaard)

Main policy institution responsible in the country (ministry in charge of alternative finance): 

Ministry of Business and Growth

  Evidence
Matching funds initiatives

A programme from the Danish central government explored how crowdfunding can be used to support startups. As part of the scheme, companies which have raised approximately €67,000 (500,000 Danish kroner) through a rewards-based platform of their own choosing were enabled to seek a matchfunding grant of between €67,000 and €207,497.

State-aid

A programme from the Danish central government is currently exploring how crowdfunding can be used to support startups. This scheme, amongst others, includes matching funds initiatives.

(source: http://www.nesta.org.uk/blog/matched-crowdfunding-new-ways-people-and-in...)

Tax benefits
Crowdfunding guidelines for entrepreneurs / investors

The Danish Ministry of Business and Growth has disclosing guidance for investors.

Osborne Clarke Germany (2016): Review of Crowdfunding Regulation & Market Developments. In: CrowdFundRES - Unleashing the potential of Crowdfunding for Financing Renewable Energy Projects. Deliverable 3.1 (PU).
http://www.crowdfundres.eu/wp-content/uploads/2016/06/CrowdFundRES-Crowd...

Guidelines for researchers on crowdfunding for R&I

Additional insight

Success story of crowdfunding platfroms for R&I: 

NAME: boomerang
DESCRIPTION: it is a rewards-based crowdfunding platform that, amongst others, supports crowdfunding for R&I projects. It was founded in 2011.
LINK: https://www.booomerang.dk/

Success story of crowdfunding projects for R&I: 

PROJECT NAME: Velocator
PLATFORM: Boomerang
DESCRIPTION: Velocator is a GPS tracker for bikes, working with an App specifically developed for it. The success of this project lies in its simplicity - it provides an App which is easy to use and a GPS Tracker which features a set of lights. Moreover, the Tracker works well, giving not only the coordinates, but also the address where the bike is located..
AMOUNT RAISED: € 53,949 out of € 33,587.

Best practice initiatives: 

The Danish Ministry of Business and Growth is offering guarantees through the Danish Growth Fund, in order to advance the application of crowdfunding in Denmark. This is a way to strengthen the trust of investors and boost the growth of crowdfunding activities.
The Market Development Fund (Markedsmodningsfonden) supports market maturation of novel and innovative products.

http://www.techfunding.eu/market-development-fund-markedsmodningsfonden

Policy measures: 

The Danish Ministry of Business and Growth is offering guarantees through the Danish Growth Fund, in order to make progress in the application of crowdfunding in Denmark .

The Market Development Fund (Markedsmodningsfonden) supports develop the market for novel and innovative products. In 2016, the fund has allocated DKK 56,4M.
Companies can apply for co-financing to test and adapt their products under real-life conditions.

http://www.techfunding.eu/market-development-fund-markedsmodningsfonden

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