While it is still the biotech and IT industry that draws the largest venture investments to Denmark, there is another profession that catches the eye of Vækstfonden’s CEO, Rolf Kjærgaard.
Vækstfonde’s figures show a historically large number of investments in food and agricultural start-ups this year.
According to Børsen, Rolf Kjærgaard states that there are a lot of opportunities as well as a need for efficiency and green transition in the food and agricultural sector. Further, he adds that these are the opportunities that entrepreneurs see and go after.
DKK 433 million to six companies
Six companies in the food and agricultural sector received venture money in the first four months of the year. Among these is Bactolife, located in DTU Science Park. The other five companies are Too Good To Go, Biophero, Simple Feast, Nordetect and Zymoscope.
This represents 24 per cent of the total number of investments over that period, which is well above 3 per cent that the sector has accounted for as the total number of venture capital investments in the period 2016-2020.
In total, the six companies received DKK 433 million.
Rolf Kjærgaard believes that startups in food and agriculture have particularly good conditions in Denmark because large companies such as Arla and Danish Crown are based here. He compares the situation to the biotech industry, which is being pulled up by giants such as Novo Nordisk, Lundbeck and Leo Pharma.
He further states that the presence of strong research capabilities and large companies is an important part of the breeding ground for the entrepreneurial environment biotech has. Those two factors also apply in the food and agriculture sector.
The Swedish venture fund Kinnevik invested earlier this year in the food and agricultural sector in Denmark since it listed a £70m investment in the vegan meal box company Simple Feast.
Andreas Bernström, director of nordic investments at Vækstfonden, sees considerable potential in investing in these types of companies. He states that if you view plant-based diet, vegetarianism and veganism as megatrends today, you have the opportunity to invest in a solid business that pushes that development.