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Factsheet for measure DK-1992-18/2615 – measures in Denmark

The Growth Fund


Country Denmark , applies nationwide
Time period Open ended, started on 01 May 1992
Context COVID-19, Restructuring Support Instruments
Type Legislations or other statutory regulations
Category Reorientation of business activities
– Change of production/Innovation
Author Carsten Jørgensen (FAOS, University of Copenhagen), Anders Randrup (Oxford Research)
Measure added 23 June 2022 (updated 17 November 2022)

Background information

The purpose of the Growth Fund is to promote growth and innovation in small and medium enterprises in all industries as a way to achieve greater socio-economic returns.

To face the COVID-19 crisis, the state introduced two schemes in the framework of the Growth Fund:

  • one relating to the SMEs
  • one relating to the large companies

Another measure introduced to face the pandemic early 2020 is the COVID-19 Start Loan. It consists of a loan targeted at young businesses.

Content of measure

To face the COVID-19 crisis, the state introduced two schemes in the framework of the Growth Fund, each of them providing an overall available support of DKK 25 billion (€3.36 billion):

  • one relating to the SMEs (companies with fewer than 250 employees and having a turnover of no more than DKK 372 (€50 million) million/year or a total annual balance sheet of a maximum of DKK 320 million/year (€43 million); and
  • one relating to the large companies (250 or more employees or a revenue of more than DKK 372 million/year (€50 million) and a balance sheet total of more than DKK 320 million/year (€43 million).

The Growth Fund is a state investment fund which aims to encourage growth in companies by providing venture capital, loans and guarantees to selected companies that can present a potential for growth and job creation based on a concrete project. The strategy of the fund is implemented in three main focus areas, the fund:

  • invests in funds that subsequently invest the capital in companies. The investments in funds take place in close cooperation with private investors
  • invests with own capital in start-up companies that present a strong growth potential, but have difficulty in securing sufficient risk capital.
  • provides loans directly to small and medium-sized companies with reasonable growth plans that cannot provide adequate security or do not have sufficient own capital to get a loan at the bank.

With reference to SMEs, the instrument allows the state to provide a guarantee of 80% of new bank loans issued to companies affected by the COVID-19 crisis. In relation to large companies based in Denmark, the Growth Fund can guarantee 70% of the loans or credit issued to cover company's losses as a consequence of the COVID-19 crisis. Both schemes were valid until 1 October 2020 and has been prolonged without an end date.

The main characteristics of the third instrument implemented to face the COVID-19 crisis, that is to say the COVID-19 Start Loan, are:

The loan is on DKK 0.4 - 2 million (€0.05 - 0.27 million); There is a requirement for cofinancing from other actors (no specifications about the actors) in a ratio of up to 1:3; The interest rate is based on Cibor 3 + 5%; The duration is up to six years; The scheme ran in the first place until 30 September 2020, but has been prolonged without a new fixed end date (as at October 2020).

Use of measure

The Growth Fund is evaluated every three years. An evaluation of the Growth Fund from 2021, shows that the Growth Funds activities in 2020 has been a part of creating and maintain 20.000 workplaces, and has increased the BNP with 15 billion DKK (€2 billion), and contributed with 8 billion DKK (€1 billion) by tax revenue.

In the spring of 2019, the supported companies employed more than 65,500 employees and had a total turnover of more than DKK 107 billion (€14.4 billion). In 2017 a total of 1,652 companies benefited from cofinancing via the fund. Overall DKK 4.9 billion (€653 million) was invested.

Target groups

Workers Businesses Citizens
Does not apply to workers SMEs
Larger corporations
Does not apply to citizens

Actors and funding

Actors Funding
National government
National funds

Social partners

Social partners' role in designing the measure and form of involvement:

Trade unions Employers' organisations
Role Unknown Unknown
Form Not applicable Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

  • Unknown
  • Main level of involvement: Unknown



Views and reactions




Eurofound (2022), The Growth Fund, measure DK-1992-18/2615 (measures in Denmark), EU PolicyWatch, Dublin,


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Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.