The Danish have done well from investing in new, small-scale Danish entrepreneurial companies. The study shows that one dollar invested by the state into growth companies generates eight dollars in return for private investors.

The analysis has been carried out by Seed Capital, which invests in brand new companies within the IT, telecommunications, biotechnology and environmental technology.

The analysis shows that over the last four years more than DKK 350 million has been invested in growth companies through the governmental innovation agencies and specialized seed capital funds. The government and governmental agencies contributed DKK 190 million, but follow-up investments from other  private investors reached an impressive DKK 1.4 billion.

This highlights the importance of signal investors in the venture and seed capital markets.