Malmo: Sweden’s small but sturdy tech ecosystem

Sweden’s reputation as a hospitable breeding ground of “unicorn companies” is well documented. However, while the capital Stockholm is, understandably, pinpointed as the leading stable, Malmo’s more humble and understated herd of innovators continue to jump global fences from the south.

There is a consensus that while Stockholm continues to rely on the reputations and talent pools of Spotify, Klarna and Skype et al, Malmo is thriving upon a well-rounded, diverse and feel-good vibe; subsequently generating a startup ecosystem that bridges the best of the Nordics with the rest of the world.

“Stockholm’s tech startup scene may be more mature and it is entrepreneurial, but it’s not as flexible or inviting as Malmo is right now,” said Vedrana Högqvist Tabor, CEO at health-tech company Boost Thyroid, which provides scientific information and tools to support preventive management of Hashimoto’s, an autoimmune condition causing an under-active thyroid.

“Maybe it’s the smaller city, or southern feel. It also doesn’t have the curse of being a capital. Either way, Malmo is perhaps where Stockholm was around 10 years ago, showcasing its flexible innovation to the rest of the continent, and indeed the world.”

Some of the city’s leading startups are based in Malmo; not because that’s where they were born or where their idea was fostered, but by choice. One leading tech-driven company making waves in the global energy space overlooked London, Berlin and Stockholm in favour of the city.

“Why? Because it’s where the diversity is, it’s where the hardware talent is, and it’s where the best access to the rest of the world – the market we’re targeting – is,” said Mehrdad Mahdjoubi, CEO at Orbital Systems, which developed a digitally powered shower to cut water waste.

The theme of internationality is reflected in the city too, with a large propotion of its population made up of non-Swedish natives thanks to the number of corporates headquartered there, like Ericsson’s, and indeed the port being situated there.

It therefore makes the recruitment of different nationalities, genders, ideas and outlooks on life “very easy”, said Boost Thyroid’s Tabor.

“These entrepreneurs and talented individuals all know each other well, and there’s very little competitiveness between them,” said Tabor, who, as a champion of the Fast Track Malmo accelerator programme, and as a woman in her early 40s, is very thankful for the openness and diversity the city exudes from its startup ecosystem.

“It’s not a demographic you’d expect a startup to be associated with, but it’s never been an issue here,” she said. “Everyone’s seemingly in this together, enthusiastic about the diversity of skills and outlooks available, wanting to push the ecosystem to another level.”

Notions of collaboration, inclusivity and friendliness naturally align with many of the tech-driven startups emanating from Malmo. Eco solutions and healthcare propositions are joined by science and education as prime environments to channel digital innovation in the city.

“People in Malmo just really want to solve things,” said Tabor. “I’ve lived in Amsterdam, Stockholm and Berlin before, but Malmo thrives from being smaller, and by having all of the startups practically on top of each other.”