The concept of Fintech got a breakthrough in Denmark in 2015, reaching both the press and the political environment. However, the scene is not mainstream yet, and it can be difficult for outsiders to maintain an overview of the scene. In this short piece of writing, I have tried to map out the most relevant players within the Danish fintech industry. I am aware that some companies might be missing, but I have had to prioritize. Ping me if I have missed your company.
Peer to business platforms
With the origin of interconnected web platforms it is possible for companies to communicate directly with potential investors or supporters. Some platforms have seen an opportunity in facilitating partnerships between privates and companies. These new partnerships made possible by platforms, are disrupting the established financing scene.
Crowdfunding refers to a company or a person raising money through an internet platform from a crowd of people. Crowdfunding is an umbrella term that covers the following types of crowdfunding:
1. Lending-based crowdfunding
Lending-based crowdfunding is investing in loans to businesses or people in exchange for an interest. Measured in dollars (or kroner) it is the most popular type of crowdfunding globally. It is also very popular in Denmark, where two of the biggest players are:
2. Reward-based crowdfunding
Reward-based crowdfunding is probably the most well-known type of crowdfunding. Here, backers of a project invest in products that have not been made. In exchange for the entrepreneur developing the product and delivering in the future. Popular platforms include Kickstarter and Indiegogo. Combined, the platforms have funded billions of dollars worth of projects since 2008. The local Danish platform is www.boomerang.dk, specializing in projects for creatives.
3. Equity-based crowdfunding
Equity crowdfunding also known as crowdinvesting, is the sale of shares in a company to a crowd of investors. Investors buy the right of becoming shareholder in the company, which means the right to vote on decisions, participate in the general assembly and to earn from potential buyout. While equity crowdfunding is immensely popular in neighbouring countries, it is due to legislative red tape not widespread in Denmark. However, Danish investors can invest freely in UK and Sweden based platforms. Some of them have a Danish office:
Invoice trading enable companies to enhance liquidity and overcome long payment terms from customers. It translates invoices into an available asset class for investors who earn on the invoice discount from the selling company. In Denmark, you can start invoice trading using
Dansk Faktura Børs https://www.danskfakturabors.dk/
Tracking performance of unlisted portfolio company can be challenging for both professional and non-professional investors. Large portfolios increase the challenge. Portfolio management platforms enable owners of unlisted shares to compile their investments and connect with companies all in one place. Copenhagen based CapDesk is a platform offering those services to investors. See www.capdesk.com.
(FULL DISCLOSURE: I am the founder of Capdesk)
Alternative Banking Platforms
With current interest levels, traditional banks are threatened on their core business. Bank customers are experiencing this with the increase of various service fees. The low interest level is pushing banks to find new business models. This has created market opportunities for fintech startups around the World. Here follows an overview of Danish companies pursuing services related to banking.
Personal Mobile Banking
Lunarway www.lunarway.com is a danish startup, operating as a mobile bank for private consumers. It is an alternative to your traditional bank, making banking more personal and enable users more involvement in their private financing.
Many self employed, startups and small companies have a hard time understanding and managing their business-related expenses. Holvi www.holvi.com is a bank made for them. It is backed by the Danish investor Thomas Madsen-Mygdal and is operating from Finland. However, it is not regulated to operate on the danish market.
Have you ever thought about taking a mortgage loan without a bank or a mortgage credit institution? Udenombanken www.Udenombanken.dk is a platform for mortage lending, providing consumers with access to professional investors bidding to provide the mortgage. Financing your next house have never been more transparent.
Coderstrust www.coderstrust.com is a danish startup that allows privates to lend and sponsor a coding education for unemployed in India and Bangladesh. In return, the lender gets an interest once the student starts earning money thanks to his/her skills developed.
The stock exchange has not seen much innovation the last 30 years. However, some companies are trying to innovate with new technologies .
If you are dedicated trader, you probably enjoy to discuss trades in spare time with friends. So why not to follow each others trades? The phenomenon of combining a social platform with trading was made popular by the Israel based eToro. However, Danish Saxo Bank has developed a solution on its own called TradingFloor. www.tradingfloor.com
If you can put a technological overlay on top of the regular stock exchange, that places your trades for you. Then, it is possible to automate your trades as well as to build and test strategies. Danish Tradeworks www.tradeworks.io has made such a platform for FOREX trading.
There is a lot to be improved in the way we handle our currency. The most disrupting phenomenons within currency is blockchain technology, the emergence of crypto and bitcoins. Danish Coinify is amongst the leading companies globally in the field of bitcoins. Using their platform, everyone can trade bitcoins. See www.coinify.com.
Customer payment solutions
The boom in internet business have created an immense need for innovations within payment solutions. The early creators, Paypal, are being challenged by new companies such as Swedish Unicorn Klarna and a few very interesting Danish startups. Here are a couple:
The established danish company www.Clearhaus.com has made a platform that lets all companies easiliy setup and handle a payment system that can be used with Visa and Mastercard.
Loyalty Card Links
Remembering discount codes or making sure to redeem the right discount is close to impossible. Danish Birdback www.birdback.com have developed a solution that link credit cards directly discount codes, avoiding to redeem the wrong discount.
As a company, it can be resourceful to setup a system that allows customers to pay using bitcoins. Coinify coinify.com has created a platform that allows companies to easily get started.
Managing and invoicing suppliers can be a tedious task for companies. Danish Tradeshift, backed by Morten Lund, launched a platform that allows companies to manage all their suppliers. It is considered today as one of the most successful danish Fintech companies. See tradeshift.com.
Need help with corporate housekeeping, accounting and shareholder management? You are not alone. Many companies, are burdened by administration and wish to minimize resource spending. Several platforms have appeared to help them.
Keeping track of bookkeeping, invoices and expenses is a pain for most companies. Accounting platforms such as danish Dinero www.dinero.dkbacked by Martin Thorborg as well as Billys Billing https://www.billy.dk/help reducing many of these administration problems to companies.
Keeping track of ownership, dilution, different types of shares, shares value, documents and investor communication is a big pain and many companies struggle with their corporate housekeeping. Capdesk www.capdesk.com is a platform that enable companies to manage their shares and shareholders. (FULL DISCLOSURE: I am the founder of Capdesk)
I started this overview with the belief that I could create it in couple of hours. But due to all the great things happening and all the promising things happening in the Danish Fintech sector, it took way longer than that. It is truly amazing to follow and take part in this sector. To all working in the sector -Keep up the good work!