How does that translate to software startups? I haven't seen many on HN, for whatever that means.
European software startups that need a huge infusion of capital tend to move some of their business to Silicon Valley while sometimes maintaining a development department back home (e.g., Unity is now headquartered in San Francisco while having its chief development department in Copenhagen, AFAIK).
edit: I count 249 startups,
Lots of Danish companies go bankrupt without it affecting the personal finances of the owners. It all depends on the kind of company you form.
you have to pay your employees 6 months wages if you go under.
Source? AFAIK, as long as your business is alive and well you pay a small amount of money each month to an organization which will make sure that if you go bankrupt, your employees will get paid anyway. This means you don't have to pay anything if you go bankrupt. https://lifeindenmark.borger.dk/Pages/Compensation-if-employ...
http://www.economist.com/node/21559618
(middle of the article, graph titled "Life Sentences")