Denmark has been shouting about being a FinTech hub for some time now, even when there was little happening. However, the power of a self-fulfilling prophecy can be powerful in the world of tech startups, and the walking has now caught up with the talking. Let’s take a look at how the Danish FinTech scene has evolved over the last few years in terms of attracting investment.
- Despite the noise starting in 2014 regarding Denmark’s potential as a FinTech hub, it wasn’t until 2016 that the scene truly kicked on. This also coincided with a dedicated Copenhagen FinTech hub set up, providing companies in the space with a community, a renewed focus and additional resources.
- Still, despite the growth last year, 2017 is currently on course for a fairly flat year. This is line with the wider investment environment in the region, so it is nothing to be concerned about, but it also shows that Danish FinTech isn’t currently capable of breaking general investment trends either.
- This improvement in the number of Danish FinTech investments is enough to comfortably place Copenhagen (and Denmark) as the second most dominant FinTech hub in the Nordics after Stockholm and Sweden.
- FinTech investments accounted for 15.45% of the total Danish investments last year highlighting its importance to the overall performance of the Danish tech startup scene when it comes to attracting funding. It was also comfortably the top backed vertical, coming in 7 investments ahead of Enterprise SaaS with 12.
- 1 in 4 Nordic FinTech investments in 2016 were made into Danish FinTech startups, certainly an improvement but still not a sign of a dominant hub.
Clearly, Copenhagen and Denmark has made considerable progress in building a FinTech community and now have the foundations to build further on a promising start. Investment growth looks likely to be flat this year though, which considering the increased effort and focus that has gone into increasing this particular aspect, could be seen as a disappointment, but still, it’s fair to say that the Danish FinTech scene is continuing to push forward, with action beginning to replace the talking.