Denmark’s life science industry is a cornerstone of the Danish economy and a global innovation leader. In 2024, life science accounted for 20% of all Danish goods exports, amounting to €23 billion, a figure that has more than tripled since 2008. Venture capital activity has followed suit: investments in Danish life science startups have nearly tripled since 2018, reaching €391 million in 2024. By 2035, EIFO (the Danish Sovereign Fund) estimate that total VC investments will surpass €1.1 billion, with health tech expected to grow fastest, rising almost fivefold.

Despite a solid development and promising projections, many health tech startups still struggle to raise the funds they need. But, if the money and appetite are there, why are startups still left waiting?

To answer that question, BioInnovation Institute, Health Tech Hub Copenhagen and Danish Life Science Cluster commissioned Rambøll to conduct an international Investor Survey. Ninety-two health tech investors responded, representing a combined €14.7 billion in capital – with nearly one in three allocating more than 25% of their portfolio to health tech. So, investor appetite is clearly not the problem. Investability is.

Where startups fall short

The survey highlights two core weaknesses that repeatedly prevent investments:

• Lack of market traction (cited by 60%)
• Unclear or unconvincing business models (cited by more than half of respondents)

Beyond this, the differences between investor types are striking:

• Business Angels focus on the people behind the company. Their biggest concern is whether the founding team has the necessary competencies.
• VCs are deterred primarily by insufficient traction.

But both groups agree that the second biggest barrier to invest is the lack of a convincing business model. Although, the findings are not surprising considering the usual stages that VCs and Business Angels invest in, the findings underlines the need for startups to tailor their strategy: prove team strength and a solid business model to attract angels and show clear evidence of early traction and a convincing/scalable business model to win over VCs.

Barriers beyond the startup

The survey also reveals barriers on the investor side:

• 30% say they lack exposure to enough health tech opportunities
• 33% lack co-investment partners
• 28–33% report insufficient knowledge of healthcare systems and regulation

Together, these gaps show that it’s not a lack of capital, but a lack of confidence, networks and visibility that holds back investments. And these gaps matter. Health tech is complex, and without the right networks and market knowledge, even well-capitalised investors may hesitate to engage.

But the most frequently cited investment barriers are structural frictions in the healthcare market itself:

• 69% emphasise the complex regulatory environment
• 67% point to a lack of innovation incentives in the public sector
• 58% cite long public-sector sales cycles

None of the above are surprising, but all of them are complex to solve. However, we are optimistic that technology can help bringing new technologies through approval faster and less resource-intensive, thereby reducing that uncertainty for investors. That is why Health Tech Hub Copenhagen recently received a grant from the Novo Nordisk Foundation to launch the Health Tech Pathway project. The goal is to facilitate the regulatory journey, by reducing complexity, and shorten timelines for startups navigating the approval processes. By providing clearer guidance and support, the project aims to turn regulation from a barrier into a more predictable, manageable step in the innovation journey.

A visibility gap at home and abroad

The survey also points to an awareness challenge. Even among investors already within partner networks, 51% of Danish investors and only 7% of international investors describe themselves as very familiar with Denmark’s health tech ecosystem. This is a clear signal that Denmark is still new on the radar of many international investors.

With this limited visibility risks Denmark being overlooked. Not due to lack of innovation, but due to lack of recognition. With international investors, particularly from the US, already dominating late-stage rounds, it is essential to strengthen Denmark’s brand as a health tech nation to attract the right partners and prevent scaleups from relocating abroad.

From barriers to breakthroughs: three priorities for action

1. Tailor investment-readiness to investor type

Different investors care about different things. Early-stage startups must demonstrate team strength and early proof points to attract Business Angels. Scaleups must show traction, scalability, and clear exit strategies to win over VCs. Incubators and accelerators can help by preparing startups for these distinct conversations.

2. Build stronger investor networks and knowledge-sharing platforms

Denmark’s VC market is becoming more international, and international funds are increasingly looking towards Denmark. But the gaps remain clear. We need structured matchmaking, cross-border syndication platforms, and regular regulatory briefings that give investors the confidence to back complex health tech opportunities.

3. Turn the healthcare system into a launchpad

Too many investors view Denmark’s healthcare system as a bottleneck. That is why Policymakers must turn the healthcare system into a springboard, through pilot programmes, faster procurement and real incentives for adoption. Success stories in the public sector will also enhance Denmark’s international reputation as a launchpad for global growth.

The bigger picture

Trends including ageing populations, rising healthcare costs and lack of hands, create long-term demand for innovative health tech solutions. The international investors are already looking on our direction, but if Denmark wants to keep and scale its best health tech companies, we need to close the gap between capital available, and capital invested. That means supporting startups in building companies rather than just products, aligning them with the right investors, addressing structural barriers such as regulation and procurement, and amplifying Denmark’s visibility on the global stage.

The surveys provide a clear blueprint. The capital is ready. The innovations are here. So, the question is not whether Denmark has the potential, but whether we have the will to turn capital into commitment.