Denmark ranks among Europe’s leading countries when it comes to venture capital. But move south towards Lolland-Falster and South Zealand, and the investments become few and far between.
In 2025, venture capital was invested in Danish companies across 135 funding rounds, while EIFO’s ongoing venture list records a further 73 transactions from January to July this year.
Since the beginning of 2025, however, just one registered venture investment has gone to a company in Lolland, Guldborgsund or Vordingborg. That investment went to Insutex, which produces insulation materials from recycled textile waste, primarily cotton. The Nykøbing Falster-based company raised DKK 2.5 million from Antler and EIFO in February this year.
According to EIFO, however, there is a straightforward explanation for the geographical imbalance.
- Many venture-backed companies emerge in environments around universities and research institutions, where there is broader and better access to talent, research, capital and networks, says Sara Sande, Partner and Head of Thematic Venture Investments at EIFO.
As a result, venture-backed companies are often concentrated around the largest cities. According to EIFO, creating more local companies with the potential to attract this type of capital requires stronger business and innovation environments around them.
- If you want to see more growth companies locally, the first priority is to create strong environments where entrepreneurs can find capital, expertise and networks. Venture investors generally follow strong companies rather than geography, says Sara Sande.
Signs of progress
EIFO also stresses that venture capital is only relevant to a small proportion of businesses, and that other forms of financing will be more suitable for the vast majority of companies.
The geographical imbalance does not, however, mean that EIFO has abandoned its ambitions outside the major cities.
- We have a clear ambition to support growth and entrepreneurship across the whole country, which is why this is also one of the five strategic priorities in EIFO’s 2030 strategy, says Sara Sande.
And in Lolland-Falster in particular, she sees signs that some of the environments capable of creating new growth companies are beginning to emerge.
- There are currently some exciting developments in Lolland-Falster. The Fehmarn Belt project, for example, has prompted DTU to establish activities in the area, which is already helping to build bridges between education, research and business.
EIFO also highlights the work of Business Lolland-Falster to encourage more entrepreneurship in the area.
