The Danish Startup Ecosystem Guide 2024 - Magazine - Page 64
LATE STAGE CAPITAL
This can be particularly important
for companies that operate in highly
competitive markets, face signi昀椀cant
regulatory or technological challenges,
or simply want to capture the market
before their competitors do.
Because late-stage companies have
already established a track record of success and often generate signi昀椀cant revenues, the risk associated with investing
in these companies is lower than with
early-stage investments. Often it’s not a
64
question of failure or success, but rather
how successful they will be.
Larger and more established companies
with more predictable earnings streams
make late-stage companies attractive to
investors as they are more likely to provide a stable return on investment.
Late-stage capital can be structured as equity or debt and is typically provided by institutional investors such as private equity
昀椀rms, hedge funds or large venture capital
昀椀rms. In addition, investors typically pro-
vide skills and networks to the companies
they invest in. Some investors therefore
focus on speci昀椀c industries and typically invest to help with growth activities,
internationalization, generational change,
management buyouts, turn-around, etc.
While the amount of traditional latestage capital has grown in line with the
startup ecosystem, new opportunities are
also emerging. Opportunities such as an
IPO on growth or venture exchanges or
secondary investors.
The Guide
