A recent analysis by EIFO reveals a significant decline in the number of business angels in Denmark, dropping from 934 in 2024 to 745 in 2025. The invested capital has also decreased, reflecting a broader sense of uncertainty among investors.
The decline in business angel activity is part of a broader market contraction, with uncertainty around AI and global economic conditions contributing to investor hesitation. However, Copenhagen’s strong software ecosystem and dedicated clusters continue to make it a natural fit for business angel investments.
“Business angels are where the Danish venture ecosystem begins. They provide the early-stage capital, expertise, and conviction that drive innovation and shape the companies that later attract institutional financing,”
said Lars Horsholt Jensen, Managing Director, Head of SME Startup & Innovation, EIFO
TechSavvy reported on this, where Kenneth Larsen, CEO of Keystones, a network for business angels, attributes this trend to underlying global uncertainties, despite stable economic conditions like controlled inflation and employment rates.
Kenneth Larsen acknowledges that the difficulty in distinguishing between AI startups, given the fast-paced nature of the industry, may have created a reluctance to invest in AI-driven ventures.
Despite the overall decline, Copenhagen remains a leader in startup investments. The Region Hovedstaden (Capital Region of Denmark), which includes Copenhagen, accounts for 63 percent of the total invested capital from business angels. Enterprise software is the dominant sector for both the number of investment rounds and the amount of capital invested, benefiting from Denmark’s strong national software ecosystem.
The report also highlights that the top 10% of business angels deploy nearly 60% of all invested capital, with the top 1% standing out further in terms of ticket size, founder experience, and graduation outcomes. For Copenhagen, this concentration of capital and expertise underscores its position as the primary hub for early-stage investments in Denmark.
