Opportunity in times of crisis for Nordic tech startups

Successful entrepreneurs and business leaders in the Nordic tech space are urging a new crop of startups to do what they did in the past – turn a crisis into an opportunity.

Amid the Covid-19 coronavirus pandemic, there may be a fear among many startups that now is not the time to put their ideas into action, but to put existing businesses into safeguarding mode.

According to research from Danske Bank, tech startups in the region face having to cut staff numbers, with falling sales and a lack of funding amid the pandemic.

But three of the Nordics’ most successful tech startup founders believe that with enough planning, motivation, support and market understanding, there are actually few better times to seize an opportunity than during a crisis.

Mentimeter’s interactive presentation and meeting proposition is a prime example of adapting to the needs of a crisis climate – facilitating organisations around the world with a virtual communication platform in the new era of remote working.

However, much of the company’s success in helping businesses negotiate the current challenge derives from its own experience with crisis, according to CEO and co-founder Johnny Warström.

“In our first year of running Mentimeter, we found ourselves in a situation where half of our team resigned,” he said. “As a young and relatively inexperienced CEO and founder at the time, it is fair to say that my confidence took a blow and we were all forced to take a step back for some self-reflection.

“It hurt to learn the hard way, of course, but this crisis marked the true start of the company we are running today. In 2015, we rebooted our organisation completely to rectify what we had failed to do at the start. And over the past five years, we have grown our amazing team to almost 100 employees, with only two people leaving during this time.”

Warström attributes the 2014 challenge to a lack of internal communication, which he believes is critical for entrepreneurs to navigate difficult times.

And in a twist of fate, being able to acknowledge this early shortcoming has now led to a situation in which Mentimeter is helping companies through their own crisis.

“We are now experiencing record levels of new registrations,” said Warström. “As people are learning how to efficiently conduct meetings remotely using videoconferencing, they are realising that the need for inclusivity, engagement and data-driven insights doesn’t go away just because they suddenly find themselves working from home. If anything, this becomes even more important.

“We are making it possible for leaders to listen to their teams and make sure every voice is heard – the same idea of efficient communication that we learned the hard way in 2014.”

Konrad Bergström is a Swedish entrepreneur who had to learn an even harder lesson from the 2008 financial crisis when he watched a seemingly thriving distribution business that he had created in the 1990s descend into €500,000 of business and personal debt.

From being a “startup icon”, Bergström spent a short period sleeping in his car following the crash of his business, before attempting to rebuild his confidence and finances in the build-up to his next venture, Zound Industries, which he was to turn into one of Sweden’s fastest-growing companies of all time; and later, the 2016 unveiling of X Shore – an innovation-led manufacturer of fully electric boats.

“I first had the idea for X-Shore back in 1996, but my vision then was ahead of its time, with the requisite technology not yet available,” said Bergström. “After the collapse of my distribution company, I regained my motivation and my passion for entrepreneurship and innovation.”

Bergström’s route to recovery demonstrates a host of characteristics and traits that he has refined with brutal hindsight, which he believes are vital for entrepreneurs to safeguard their businesses.

“For me, the key to overcoming this crisis was determination and having great people around me,” he said. “Starting a business is a one-way street – once you throw the dice, you are in the game. Going through professional crises has developed my ability to think ahead before taking that plunge.

“I recommend any entrepreneur to make a really detailed plan from the start. Just having a plan B won’t do – you will need a plan A, B, C and D to succeed.”