As part of the Government's latest aid package, Innovation Fund Denmark has been assigned to distribute an additional DKK 350 million to knowledge-based and innovative entrepreneurs and small and medium-sized businesses that have been affected by the corona crisis. In particular, the funding shall protect innovative and knowledge-based workplaces – and ensure that the companies continue their development and innovation projects.
The Government and the parties in the Danish Parliament have agreed to provide an extraordinary lift of Innovation Fund Denmark's budget of DKK 350 million which shall help to ensure that innovation projects and knowledge-based workplaces are not lost among the country's small and medium-sized companies and entrepreneurs in the current crisis situation.
Innovation Fund Denmark will invest the funds as quickly and efficiently as possible to knowledge-based entrepreneurs, start-ups and SMEs for whom it is presently extremely difficult to get access to private investments and customers.
Funding for new projects and retention of employees
The new funding will be made available this week by increasing the risk willingness and funding opportunities in Innovation Fund Denmark's Innobooster programme. In addition, companies or entrepreneurs who have received an investment from the Fund's start-up programmes in 2020 will have the opportunity to apply for additional funding.
Later in May, especially promising start-ups which have existed for less than five years may also apply for an investment in order to retain or recruit new development or knowledge employees.
- We are very aware that there are many otherwise promising knowledge-based companies, start-ups and entrepreneurs throughout Denmark who are in a very serious situation right now. The earnings may be gone and the liquidity may be squeezed to the limit. That is the reason why we are doing whatever we can to pay out the additional funding as quickly as possible so we can help to keep the most promising of the important knowledge companies and entrepreneurs alive, says Anne-Marie Levy Rasmussen, CEO of Innovation Fund Denmark.
Easier access to financing for more companies
Innovation Fund Denmark will make it easier for more knowledge-based companies to apply for additional funding, and it will be a high priority to pay out the funding to the companies as soon as possible.
Specifically, Innovation Fund Denmark will distribute the DKK 350 million pool through the following initiatives:
- Greater risk willingness and the opportunity to obtain funding for more market maturing activities via the Fund's Innobooster programme.
- Financing the recruitment of new employees and retaining development/knowledge employees in promising knowledge-based start-ups.
- Opportunity for entrepreneurs to apply for a funded extension of the Innofounder course.
- Opportunity for additional funding for start-ups and SMEs that have an active grant through the Fund's Innobooster programme.
- A stronger interaction between Innovation Fund Denmark and the Danish Growth Fund targeted at entrepreneurs, start-ups and SMEs.
- Extension of the opportunity to apply for funding for innovation projects in rural areas through Innovation Fund Denmark's Rural Growth Pilot Programme.
- The normal summer closure of the Innobooster programme from 3 June to 14 August has been abolished this year, and applications may be submitted throughout the summer period.