Aalborg is Denmark’s best kept secret

This post is also available in: Danish

The water creeps through the city and under the iconic Limfjord Bridge, connecting Aalborg with Nørresundby and Vendsyssel. Along the fjord, the traditional heavy industry that has been part of the city’s DNA for centuries dominates – cement production, shipyards and not least the liquor and tobacco factories. Parts of the old industry have long since closed, and while the buildings are now used by Aalborg University, some of the production mentality still lingers.

“There is a huge entrepreneurial spirit in Aalborg and North Jutland, but the mindset is quite traditional – we need to produce a tangible product. It’s often an expensive way to start a business, as you have to buy machines and hire employees for production. When it succeeds, it creates more jobs, but I think Aalborg will transform more towards knowledge-based entrepreneurship,” says Mads Bang, Innovation Director for AAU Innovation at Aalborg University.

Mads Bang experiences great enthusiasm among the students. Most students at Aalborg University come from Aalborg and the surrounding area in North and West Jutland, where it’s not unusual to have self-employed people in your network. There is therefore a lot of drive, so even though Aalborg University is far from the largest in Denmark in terms of student numbers, they try to turn their size into an advantage.

“There are some unique opportunities to match students with different backgrounds and skills. We have everything from humanities and engineers to business administration and doctors under the same roof. It provides some great opportunities to put together some strong startups,” says Mads Bang.

Huge potential for investment in early-stage startups

But there is room for improvement in the local ecosystem so that more Aalborg startups can get off the ground. Venture capitalFuel for startups' rocket ride. Venture capital is pro investors who create pool funds to seek innovation, and to mentor. It is high risk, high reward journeys.... More can be few and far between for local investors, who prefer to go after established companies that are already doing well.

“We have a lot of startups in Aalborg, but statistically we don’t get the share of investments that we should.”

“We have a lot of startups in Aalborg, but statistically we don’t get the share of investments that we should. We need more investment in those that have just started and are building up. This is where we have huge potential – especially for investors who want to get in early and sell out on the way up,” says Innovation Director Mads Bang.

Mads Bang has a background as co-founder of several energy startups since 2005, so he knows the challenges new startups face in attracting investment. The small gestures in North Jutland should therefore be a little bigger, so that they can attract some more investment money.

“We need to prepare startups better to seek investment and make themselves interesting to investors. I’ve been in New York myself and had to pitch for an investment, and it’s a whole new language that startups need to learn. We need to get better at believing in ourselves so we can take the next step. There is so much untapped startup potential in Aalborg,” says Mads Bang.