ByFounders is a new venture capital company from Copenhagen, Denmark.

ByFounders is a newly-announced venture investment firm based in Copenhagen, Denmark.

The company is managed by Tommy Andersen and Eric Lagier and sits on a 10-year investment fund of DKK 750M ($120M), looking for making investments in about 40 companies from the Nordic area.

The money comes from a range of 30 local angel investors, including Claus Moseholm, Peter Mühlmann, Jacob Jønck, Tommy Ahlers and Danny Lange, as well as from institutional investors (Vækstfonden) and will be invested in promising early stage startups from Scandinavia and the Baltics.

The Danish early stage investment is heavily dominated by the government-owned SEED Capital, which made 29 investments in 2016. However, Seed Capital has been criticized for a now blocked option model, which enabled it to make follow-up investments in its portfolio companies on favorable terms.

According to Tommy Andersen, unfavorable investment agreements have long been a general problem for Danish entrepreneurs.

"Earlier access to capital has been bound by some conditions that were not beneficial to companies. We have been in situations where it has been hard and therefore we want to create a model with the smoothest terms for entrepreneurs," says Tommy Andersen.