This post is also available in: Danish

Friends, Family and Fools: The 3F’s are often the first lifeline for startups when it comes to funding. When this supply line is exhausted, startups often turn to business angels for additional funding.

There are an estimated 4,000-5,000 business angels in Denmark. A lot of these business angels are organized in business angel networks. The Danish startup ecosystem has seen several new business angel networks over the last few years – including networks for female business angel investors.

Business angel networks consist of individual investors who provide funding and support to startups. These networks are typically composed of high-net-worth individuals who are looking to invest in high-risk, high-reward ventures.

One pitch to hundreds of investors

The obvious reason to befriend business angels is cold, hard cash. A Danish business angel typically invests between DKK100,000-1,000,000 per startup. Business angels also often invest together in investment syndicates which could consist of a group of just a few individuals and up to sometimes 25 business angels.

Business angels are often willing to invest in startups at an early stage when other sources of funding, such as venture capital, may not be available. But as angels typically invest their own money earned through a successful business career, they are also able to bring a lot more to the table.

Startups can apply to business angel networks by submitting their pitch deck and then get a chance to pitch in front of the angel investors in the network. Some business angel networks have several hundred members so it is a very fast way to connect with a lot of potential investors.

Smart money

Business angel networks provide access to a network of experienced entrepreneurs and business people turned investors. These individuals can provide mentorship, guidance, and connections that can be invaluable to startups. For example, business angels may be able to introduce startups to potential customers, partners, or other investors.

Furthermore, business angel networks often have a diverse range of experience and expertise across different industries and sectors. This can be particularly beneficial for startups, who may need specialized knowledge and skills in order to succeed.

Another benefit of business angel networks is that they can provide a level of validation and credibility for startups. By having the support and backing of experienced investors, startups may be more likely to attract additional funding or attention.

The article is part of the magazine “The Guide – A comprehensive overview of the Danish startup ecosystem”, published by Heyfunding and

Read the full magazine here: