Vækstfonden

Vækstfonden, also known as the Growth Fund, is a Danish state-owned investment fund established to promote growth and innovation in Danish small and medium-sized enterprises (SMEs). It provides financing to enable scaling, including direct equity investments, loans, guarantees, and co-investments with private investors. The fund focuses on growth-oriented companies with potential for export, internationalization, or technological development.

Operations and programs: Vækstfonden makes direct investments in growth-stage companies and also participates in venture capital funds and other financing arrangements. It offers growth loans to strengthen working capital, risk-bearing capital for research and development, and guarantees to reduce collateral requirements. It often collaborates with banks, regional development bodies, and EU financing schemes to mobilize private capital.

Governance and scope: The fund is owned by the Danish state and operates under government oversight, with a board and a chief executive. It reports to the Ministry of Industry, Business and Financial Affairs and maintains transparency through regular reporting. By design, Vækstfonden complements private finance, aiming to bridge equity and credit gaps for early- and scale-up companies.

Impact and reception: Since its inception, Vækstfonden has supported thousands of Danish companies, aiming to create jobs, spur innovation, and accelerate growth. It participates in public–private financing instruments and adheres to EU state aid rules and reporting requirements.