• Sweden edition
 
Skype founder: 'cold winters' key to Swedish tech success

Skype founder: 'cold winters' key to Swedish tech success

Published: 16 Feb 2012 17:26 GMT+01:00
Updated: 16 Feb 2012 17:26 GMT+01:00

Niklas Zennström is one of Sweden’s best known and most successful tech wizards, co-founder of Skype and Kazaa, and founder of the investment company Atomico.

On Wednesday, the tech-guru spoke at Stockholm University to "encourage students to pursue entrepreneurialism", share some his esteemed insights, and to offer a few predictions about there the market for high-tech gadgets is heading.

However, on a snowy day in the Swedish capital, he claimed it wasn’t just the economic climate that was the cause of Sweden’s start-up trends.

“When the weather’s like this outside, what else is there do to besides sitting inside and creating a business?” he said, in response to why Sweden has so many startup companies today.

“But really, Stockholm is one of the places that has become more attractive to go to, and this has nothing to do with the weather. It’s because there are a lot of new, interesting, and high-quality companies here."

According to Zennström, there are several other aspects to Swedish business culture which also helps drive entrepreneurship.

“Sweden is punching way above its weight with great companies in terms of quality. We are not so hierarchical, we like to be pragmatic. It’s a culture that’s suitable for creative-ism and for getting companies off the ground,” he said.

Andreas Ehn, co-founder of streaming music company Spotify was also on hand to discuss management, leadership, and his latest collaboration with the Skype giant.

Zennström’s venture capital firm, Atomico, which has invested in over 40 international companies, has most recently endorsed Ehn's latest venture - Wrapp.

Wrapp is an online mobile application specializing in gift cards and looks set to take over the world.

The product launched in November and has already received funding for $10 million. According to Ehn, the plan is for Wrapp to be accessible worldwide.

But a good idea doesn't necessarily mean success, Zennström was quick to add.

“You have to try a lot of times to succeed. Even if you play golf – I’m a lousy player myself – but I know that if I hit the ball enough times I’m going to have one very good shot, and the ball will eventually go a long distance. It’s like this with being an entrepreneur. The statistics are against you and you’re for sure more likely to fail - but it’s important to try,” he said.

Part of this success can be put down to team management, according to Zennström.

“Don’t be afraid of hiring people smarter than yourself," he said.

"Insecure people hire people who are less intelligent, and that just creates more work. Those who are comfortable with themselves aren’t insecure about not being the smartest, and so can succeed by leading the way.”

The idea of intelligence was touched by Ehn too, who pointed out that a good leader doesn't necessarily need to be the most knowledgeable.

“Management is a support function, people who are solving problems that are in the way – the experts will always have more knowledge about the problem at hand than you do, so let them make the decisions, and just make sure you’re leading them in the right direction,” said Ehn.

During a discussion session with the audience, many audience members asked for the pair's thoughts about the future of technology.

“Today, everything is mobile, and I don’t think we’ll go backwards from this. This is a transition from two or three years ago when companies saw mobiles as a centre of their strategy," said Zennström said.

"There will be a growth increase, and a price decrease in the mobile market. There will be a change with the emerging markets which will yield different behavioral patterns. There will be smartphones in Africa or in the countryside of Brazil, and they will be able to trade with their mobile. It’s about opportunity."

Spotify founder Ehn agreed.

“Smartphones will become the default window to the internet, not the computer. It will be the first interface if you’re building something new,” he said.

As the climates change and technology is embraced, both Zennström and Ehn were interested in their respective products’ usership.

It came as no surprise that a show of hands from the audience showed what appeared to be 100 percent usage of both Skype and Spotify.

As for Wrapp, the response was a little more sluggish, but both men were confident in the product’s future in what is estimated to be a $100 billion American gift card market.

But it’s not just about the financial success, according to Zennström.

“For me, one of the reasons I worked hard was the financial reward, as that was a scorecard at the end of the day and good for competitive drive. But, I also wanted to make an impact. Just seeing that the world uses Skype to communicate is personally really rewarding,” he said.

In light of this, Zennström offered some final words of advice.

"I think it’s important to promote entrepreneurship and to encourage people, and specifically students, to consider entrepreneurship, and not to go and work for a big bank or consulting firm or engineering company – but to think of joining a startup. This is something that’s important.”

Oliver Gee

twitter.com/theuppsalakoala

Don't miss...X
Left Right

Your comments about this article

18:39 February 16, 2012 by apelsin000
Linus Torvalds also has brought up exactly the same point, so stop the global warming! LoL
22:15 February 16, 2012 by occassional
I am waiting for Jesse Jackson to kick hell about this cold weather = more entrepreneurial stuff. Wait for it.
06:00 February 17, 2012 by skatty
I prefer weather like Silicon Valley; life and business in a wonderful weather, warm and enjoyable; not cold and depressive, dark and boring for six months!

What the hell is the enjoyment of business in North Pole!
08:48 February 18, 2012 by Birbun
It's difficult to think a business in Sweden when the taxes are so high.

You're going to risk your time,money and job to practically work for the State and to keep on the parasites,the drunks,the immigrants and the welfare.

This isn't good.

The max taxation should be 10-15 % max.
12:49 February 19, 2012 by IranianAtheist
"The Skype software was created in Tallinn, Estonia by Estonians Ahti Heinla, Priit Kasesalu and Jaan Tallinn." (from Wikipedia)
13:10 February 19, 2012 by Rick Methven
The software was developed in Estonia on the design of Zennström.

The design of any software system is the key part, the programming is secondary.

I have 4 major successful software systems that I have designed. Only one have I 100% designed and developed from concept to release, the others have been programmed by contracted developers.
Today's headlines
Fit-again Ibrahimovic set for PSG return
Photo: TT

Fit-again Ibrahimovic set for PSG return

Zlatan Ibrahimovic is set to make his comeback for Paris Saint-Germain against Saint-Etienne in Ligue 1 on Sunday after two weeks on the sidelines with an abdominal muscle injury. READ  

Military raises readiness level over Ukraine
Swedish soldiers in Afghanistan. File photo: Magnus Lindstedt/Armed Forces

Military raises readiness level over Ukraine

The Swedish military said Saturday it had increased intelligence gathering and called in extra staff to its headquarters over the crisis in Ukraine, as the prime minister compared Russia's current behaviour with the Cold War. READ  

Police injured in anti-Nazi protest in Stockholm
Police and demonstrators on Saturday. Photo: Fredrik Persson/TT

Police injured in anti-Nazi protest in Stockholm

Swedish police said three officers were injured Saturday as they faced a crowd of thousands protesting against a neo-Nazi rally in central Stockholm. READ  

Boy receives cancer vaccine by mistake
Photo: Hasse Holmberg/TT

Boy receives cancer vaccine by mistake

A boy scheduled to be vaccinated against mumps, measles, and rubella instead received a vaccine against cervical cancer. His family has now reported the blunder for inspection. READ  

Sweden grants additional funds to jobs agency
Photo: Bertil Enevåg Ericson/TT

Sweden grants additional funds to jobs agency

The Swedish government has announced that it will increase funding to the jobs agency (Arbetsförmedlingen) in 2015, primarily to cover personnel costs but also to prevent long-term unemployment. READ  

Police 'powerless' against street racers
Police on E4 highway. Photo: Johan Nilsson/TT

Police 'powerless' against street racers

Stockholm police said they were powerless to react when streetracers took over at "insane speeds" on a large highway on Friday night. READ  

Saab carmaker wins receivership
Photo: Björn Larsson Rosvall/TT

Saab carmaker wins receivership

After initial rejection, a Chinese-owned company set up to take over Saab's assets after the troubled Swedish carmaker's bankruptcy said on Friday it had succeeded in being placed in receivership. READ  

Woman suffers cardiac arrest while giving birth
Photo: Tomas Oneborg/TT

Woman suffers cardiac arrest while giving birth

A 30-year-old woman went into cardiac arrest while giving birth at a Stockholm clinic - without hospital staff noticing that anything was wrong. She remains in a critical condition on Friday. READ  

Champions League
History repeats for Malmö fifty years later
Striker Magnus Eriksson during Malmö's 3-0 win over Salzburg in a Champions League qualifier. Photo: Björn Lindgren/TT

History repeats for Malmö fifty years later

Malmö's entry into the Champions League serves as a reminder of times gone by in European football. With Spain's champions bound for Sweden things just couldn't be better, writes contributor Lee Roden. READ  

Elections 2014
Löfven promises jobs to 50,000 young Swedes
Social Democrat leader Stefan Löfven. Photo: Fredrik Sandberg/TT

Löfven promises jobs to 50,000 young Swedes

Social Democrat party leader Stefan Löfven announced on Friday his "most important election promise", a 90-day job guarantee programme for young Swedes. READ  

RECEIVE OUR NEWSLETTER AND ALERTS
Gallery
People-watching August 27
Gallery
Top ten false friends in Swedish
National
Roma advocate scoops Wallenberg prize
Society
Meet the man who made a Swedish store recall its high heels for kids
Business & Money
'How I came to run my own business in Sweden'
Blog updates

25 August

Hit och dit, här och där (The Swedish Teacher) »

" Hej igen! A common challenge for Swedish language students are the location adverbs hit/här, dit/där, hem/hemma etc. Some of the location adverbs come in two versions. We should use one type of location adverb when we use a verb describes where we are, and we should use the other type of location adverb when we the verb..." READ »

 

25 August

The Dollar Store (Blogweiser) »

"A dollar store in Sweden. Blog post: http://t.co/tNuuvcP1q0 #USD #greenbacks #sweden #sverige pic.twitter.com/RHFAYf7U1k — Joel Sherwood (@joeldsherwood) August 23, 2014 There’s a chain here in Sweden called The DollarStore. This name always stood out to me in a country where they don’t use dollars. I went there for the first time this weekend. They actually accepted greenbacks..." READ »

 
 
 
Politics
Expert explains why Sweden's election oozes uncertainty
National
City plays Schindler's List theme at Nazi rally
Society
For Stockholm Fashion Week, here's the A-Z of Swedish fashion
National
'Amnesiac' man avoids deportation for ten years
Gallery
Princess Estelle through the years
Business & Money
Swedish city all set for six-hour workday trial
Business & Money
Five golden rules for the Swedish job hunt
Sponsored Article
Graduates: Insure your income in Sweden with AEA
Gallery
People-watching August 22-24
National
Armed royal guards caught (very) drunk on the job
National
Sweden orders textbook on Roma discrimination
Gallery
Violent anti-Nazi demonstrations in Malmö
Society
A closer look at Sweden's five official minority languages
Gallery
See the destruction from the southern Sweden floods
Politics
'Sweden Democrats hold the key to elections'
Society
Swedes celebrate first day of smelly fish season
Politics
Sweden elections: How do they work?
Finest.se
Gallery
People-watching August 20th
Society
Did you know the Bronx in NYC was named after a Swede?
Sponsored Article
Find out what gives this Swedish school executive appeal
Sponsored Article
Introducing...Your finances in Stockholm
Sponsored Article
Introducing...Housing in Stockholm
Latest news from The Local in Austria

More news from Austria at thelocal.at

Latest news from The Local in Switzerland

More news from Switzerland at thelocal.ch

Latest news from The Local in Germany

More news from Germany at thelocal.de

Latest news from The Local in Denmark

More news from Denmark at thelocal.dk

Latest news from The Local in Spain

More news from Spain at thelocal.es

Latest news from The Local in France

More news from France at thelocal.fr

Latest news from The Local in Italy

More news from Italy at thelocal.it

Latest news from The Local in Norway

More news from Norway at thelocal.no

743
jobs available
Swedish Down Town Consulting & Productions
Swedish Down Town Consulting & Productions is an innovative business company which provides valuable assistance with the Swedish Authorities, Swedish language practice and general communications. Call 073-100 47 81 or visit:
www.swedishdowntown.com
PSD Media
PSD Media is marketing company that offers innovative solutions for online retailers. We provide modern solutions that help increase traffic and raise conversion. Visit our site at:
http://psdmedia.se