The Market Development Fund backs innovative products and services in the stage between prototype and finished product. 20 percent of their investment capital is marked for the digitalization and automation of processes in small and medium-sized companies. They have industry partnerships in the areas of design-driven innovation, digital content production, and data-driven business development.

Experience

Following a streamlining process of the Danish innovation system, The Danish Renewal Fund was in 2012 restructured into The Market Development Fund. Originally focusing on green innovation in vulnerable geographical areas, the fund builds on its previous experience to support innovative projects in the Danish society.

How much do they invest?

The fund has allocated DKK 56,4 million for investments in 2016. Each portion of funding vary in accordance with the size of the company. The average amount of funding goes from DDK 1,5-DKK 5 million.

How do they work?

You can either apply separately or in collaboration with a partner. The application process is divided into a pre-screening over the phone, a written application and a presentation of the project. The project can be declined in each of the steps.

This makes a difference to them

As a company you should be at the stage between working prototype and finished product. Your business plan must include a budget of minimum DKK million 3 and be scheduled for completion within the next three years. Academic research, demonstrations, healthcare products and financial services are not backed by the fund.

It is important that the company has an established business plan, a working prototype, and an innovative product. The product’s level of innovation is assessed in accordance with the amount of risk involved in the development. With regards to software, the fund puts emphasis on functions that haven’t been seen in other software solutions.

A good pitch for them

Due to the late stage of the funding, you should be fairly specific in your application. The written application must include a business plan for the product/service, your budget, CV’s on the central actors behind the product, a signature on a test-user of the product. The applications should furthermore include a description of how your company meets the requirements for funding.