The Danish Startup Ecosystem Guide 2024 - Magazine - Page 63
International market dominance
requires deep pockets
If you’ve created a startup that earns
DKK 5 for every DKK 1 spent, you’re
well on your way to an international
position of strength. However, the
amount of capital requirement
increases as the startup grows.
Fast-growing companies often face the
same challenge: it usually takes time before
a paying customer is actually pro昀椀table.
This means investors with big wallets are
needed to continue growing rapidly while
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paying the growing operation bills—a
challenge that only gets bigger as startups
approach and surpass unicorn status.
Large investments in established,
fast-growing companies are often
referred to as late-stage capital. The
company has already achieved signi昀椀cant growth and has established itself as
a leader in its industry.
Late-stage capital is used to fund the
company’s next phase of growth, which
often involves expansion into new
markets, acquiring other companies or
preparing for an initial public offering
(IPO). The amount of funding available
for late-stage capital is signi昀椀cant, often
ranging from double-digit millions to
hundreds of millions.
More opportunities than ever before
Late-stage capital allows companies to
continue growing and expanding beyond
their current revenues even after they have
exhausted their early-stage funding.
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