Venture capital, a risky business?

Business planet is in Copenhagen to look at venture capital. An alternative to more traditional modes of financing, venture capital funds help companies through the critical start up stages of business. In Denmark, for example, Fluxome, has benefited through venture capital and from European funds. It is now a key player in its field.

Developing nutritional supplements on the nutraceuticals market requires huge investments. Fluxome, based in the suburbs of Copenhagen has been up and running since 2002. It received six million euros in its first wave of venture capital in 2006. This funding paved the way for it to bring products to market three years later.

Venture capital is usually given to innovative SMEs (small and medium sized firms) in the early stages of development but is also helps business' to expand.

Fluxome has received 23 million euros in venture capital over the last ten years. A cash injection which has enabled it to develop business internationally.

Its first product is currently being evaluated in the US by 30 of the country's largest nutritional supplement companies.

Jarne Elleholm, Chairman of Fluxome explains how venture capital has benefited Fluxome:

'So you need money, as well as the good idea, to bring it all the way through. Without that they would not have been able to create a company which today.