Tallinn, Riga, Vilnius, Helsinki - We Have A Problem
Allan Martinson, one of the most best known and experienced investors from Estonia (currently the founding and managing partner of MTVP), has cast concern about the amount of new accelerators and different support programs for startups. He states a valid point, that if every town and your brother has an accelerator they will fail to attract critical mass to support their functions. Martinson states that Baltics really need one big accelerator with strong financing and a strong team to make a splash in the global pond of startup activities.
There really cannot be too much discussion around this topic, and therefore we have included Allan Martinson's original statement from his public Facebook status below.
This Is Why I Don't Give You A Job
Editorial note: This is a guest post by Andor Jakab from Hungary. In fact, this is a cross post from his blog. The post outlines well many of the challenges early stage entrepreneurs face. Even though things aren't quite as bad here in the Nordics and Baltics, it's good to understand the realities. Towards the end, we also talked to Jakab about the recent laws and changes in the country regarding its future. It's a chilling read and a reminder to us all.
I could hire 12 people with €760 net salary, but I don't. I tell you why. You could work for my service provider company in a nice office. It's not telemarketing, it's not a scam. You would do serious work that requires high skills, 8 hours daily, only weekdays. I would employ you legally, I would pay your taxes and social security. I could give such a job to a dozen people, but I will not, and here I explain why.
Estonian Master’s Degree Programme Focuses On Tech Entrepreneurship
Do you dream about creating your own digital startup but lack the business know-how to get everything going? Then an international master’s degree programme in Design and Development of Virtual Environments (DDVE) may just be the thing for you.
DDVE is a new inter-discliplinary initiative at the University of Tartu in Estonia that combines three key study areas; design, business and ICT. Taught in English, the two-year programme provides students with advanced skills in entrepreneurship for creating innovative digital products and services.
Entrepreneurship Visa In Finland? Not Unless Your Startup Is Profitable!
Due to the nature of this post we have agreed to publish the content under a pseudonym.
The path to becoming an entrepreneur anywhere is wrought with obstacles. Most of the concerns come down to money and time but if you happen to live outside of your home country you also need to think of visas. One often hears horror stories about getting an entrepreneurship visa to the US. Here is my experience with Finland.
The story starts similar to many foreigners: I moved to Finland from the safety and comfort of my home country because of my girlfriend. I was lucky enough to find work despite my non-existent Finnish in a big international company. All was good until I started being more and more interested in entrepreneurship. Besides, things at work were not going so well, there was a lot of hushed-up talk about job cuts.
Finland Takes First Steps To Tolerate Failure
Finland has one of those peculiar western cultures where failure isn't tolerated. Failure isn't tolerated socially nor is it tolerated in the society at large. One of the most common outcomes of starting high growth businesses is that most of them go bankrupt. This means, that failure is at the core of high risk entrepreneurship. This is something that hasn't been accepted in Finland and the National Fail Day (in Finnish), celebrated today, is the first public awareness act to change this.
Finnish Awesomeness and Entrepreneurship
Editor's note: This is written by a Finnish entrepreneur Riitta Raesmaa, who wanted to cast her voice about her home country. We're glad to publish similar articles from any other country in our region - please get in touch with us, if you'd like to get your content published. This post was originally published at Riitta Raesmaa's personal blog.
Something exceptional is happening here in Finland. However I think that the foundation for that has existed a long time, only to wait its time to come. And it seems that the time is here and now. Let me explain.
I am a startup entrepreneur and I am considering myself very lucky that I have had the opportunity to follow somewhat amazing chain of events happening in the startup scene of Finland. The young crew from the Aalto University, so-called Aalto Entrepreneurship Society, has worked hard for two and half years, and finally this week they publicly proved that their vision and the actions taken truly are a very powerful force.
Golden Rules Of PR By Christina Forsgård
Tech start-ups come up with great ideas and build brilliant products but often lag behind marketing them. Main reason for that is usually lack of resources: entrepreneurs would rather spend their limited funds on developing a product than on marketing it. However, most agree that it’s important for your product to be known and talked about. We talked with one the main PR gurus in Finland Christina Forgård (founder and Chairman of the Board of Netprofile) who shed light on the world of PR and shattered some common myths and misconceptions.
Entrepreneurs Become Men's Biggest Role Models
Who do today's men look up to as role models? According to a recent survey by AskMen, it's entrepreneurs! Out of over 2,000 surveyed men, more then a third (35%) identified famous entrepreneurs as their role models. The article explains the trend with two main things: men consider wealth and freedom key to happiness. Entrepreneurship can offer both, especially if you succeed. Interestingly enough, almost as many respondents identified themselves as their own role-models, which is consistent with another trend the article identified - men's eagerness to start companies has been trending upward since 2001. Thus, we have to thank the likes of Steve Jobs and Mark Zuckerberg for making entrepreneurship cool even in the mainstream.
TechStars Outshines Y-Combinator As The Top Startup Accelerator Program In The US
When you mention startups, funding, mentoring and networking are the most essential ingredients needed by each aspiring founder. There are great ideas waiting to be put into practicality and the only thing that keeps them from shooting from their roots has been the absence of incubators and accelerator programs. Things have been changing and a number of startup accelerator programs and incubators have surfaced, this is where ideas are carved into reality, founders are provided guidance, the essential tips to direct them towards success and the ever needed funding.
What The New Top Three Parties In Finland Think Of Entrepreneurship
The three largest parties to gain power in last night's Finnish parliamentary elections have dramatically different political agendas. Fortunately for entrepreneurs, employment and entrepreneurship is one of the areas with the fewest differences overall. However, there are differences and depending on how the new government will be formed - these might have significant effects on entrepreneurs and their incentives as well. Below are some of the key areas of change these three parties are trying to achieve (from an entrepreneurial point of view).
Yandex.Factory To Finance Startups
Russian firm, Yandex is waking up to assist startups with funding with the initiation of Yandex.Factory. Yandex.Factory is a startup investment program that will provide funding to startup projects in Russia as well as those from the International arena and this investment is by no means small.
Garage48 Goes Africa Times 5!
We at ArcticStartup heart the Garage48 event for all the rush and enthusiasm that comes forth in the 48 hours of pure innovation. But the weather at the events here in the Nordics and Baltics was perhaps just a bit too cold and needed some equatorial treatment, which is exactly the treatment Garage48 will be getting. Garage48 has announced that they will be holding 5 events in Africa.
Looking Past "Finland Post Welfare"
Students in Finland have come a long way in a few years. Last night, Finland saw one of its most impressive events in support of growth entrepreneurship - all organised by a small group of passionate students. What makes this all the better, is that the event was covered by numerous national media and the panelists at the actual event included the hotshots of Finnish business environment; a mix of very influential business people and a group of startup entrepreneurs. The event was called "Finland Post Welfare", questioning the things Finland should work on to sustain its welfare status. It was put together by Aalto Entrepreneurship Society.
We live blogged the event last night in English as the event itself was held in Finnish. As it's not the best use of anyone's time to suggest that you go through the logs - we'll do our best to summarise the event in this post.
Estonian Development Fund Keen At Exploring Business Opportunities In India
How or why do you expand into new markets? There is one simple word that justifies all this; opportunities. Emerging markets might have the uncertainty of ensuring a successful startup or a business venture but they have all the room for growth over time. India, for example has become one of the fastest growing economies and in my opinion a hub to be of all innovation. Guess this is exactly what has been identified by the Estonian Development Fund when they announced a call upon entrepreneurs, universities and investors to explore business opportunities in the worlds second most populous country.
Making Growth Entrepreneurship Political
Finland will be having its parliamentary this April. Naturally, entrepreneurship and welfare are on the agenda, but one aspect of entrepreneurship that has been missing is the lobbying of growth entrepreneurship. On 21st of March, Aalto ES will be putting together an event together with a whole bunch of organisations to promote growth entrepreneurship for the candidates running for parliament. The event is controversially called Finland Post Welfare.
Project Getaway: Adventurous Entrepreneurs Living A Life In Paradise
Soon the Nordic summer will be over, and then the ice cold winter only gets closer day by day. So what is an adventurous entrepreneur to do? Well, how about going to Bali, live in luxury villas, and join 15 young, successful, fun and adventurous entrepreneurs?
This is exactly what Project Getaway is all about, and during September and October this year, we have organized a trip, which is designed to be a "dream come true" for any entrepreneur.
Scientist! You Are Far Better Off If You Set-Up A Company
Founding a company does not equal to selling your soul to the devil. It is the best way to move your science forward.
This is what I try to convince the most brilliant scientists to believe in.
The best researchers became researchers as they love to make new science and are really good at it. Business is seen as a distraction to science, something to stay out of. It is evil -- either a prime one or a necessary one. Of course I am exaggerating, but at the same time I am sure that many scientists find themselves thinking along these lines - at least for a moment sometimes.
The Unsung Hero
In the stories, the hero fights for the people, faces failure and great uncertainty, and ultimately wins.
In Finland, we think he’s a fool who thinks he’s better than everyone else, disrespects the rules and is probably Finnish-Swedish.
Entrepreneurs are the same. They are opportunists and idealists. In its original French, the word means: somebody who will attempt to create something.
On one hand it’s a risky, lonely and difficult endeavor. But on the other hand, it’s thrilling, challenging and potentially offers great returns (value, jobs). I believe we Europeans, and especially in Finland, spend too much time focusing on the former and not enough on the latter.
Finland Gets its Startup School this Summer
Nordic media, take note. Finland is notorious for its lack of entrepreneurs. A collaboration between student-run associations from the top 3 schools in Helsinki (Aaltoes, Hankenes and Hues) has raised 50,000 euros in public funding, to encourage students to create startups during the Summer.
Summer of Startups will take place during July and August and will provide 750 euros per month in funding to each team member, regardless of their school or country of origin. This is the first time such a program does not take any equity, unlike programs such as Y-Combinator, Techstars, or Startup Bootcamp Denmark. The goal is purely educational, in order for students to try entrepreneurship without having to fear from failure. Stanford started a similar initiative called SSE Labs, which will run from June 15th-Sept 15th.
Disclaimer: I am the main coach of this program.
How To Raise Your Kids As Entrepreneurs
I watched a terrific TEDx video from Edmonton where entrepreneur Cameron Herold shares his advice to parents around the world for raising your kids with entrepreneurial thinking. He himself did not do too well in school and was left questioning at a very young age; "why are our kids raised in this manner?".
Cameron Herold has very pragmatic advice for parents and other viewers alike. For example, instead of giving children weekly allowances, which in his opinion teaches the kids that incoming money is taken for granted, he tells his kids to go around the house and look for things that need improving. Once the kids notice something that can be done better, they come back to their father and start negotiating on the price for that job. This way they'll always have to realise the opportunities, defend their point of view why it needs improvement and create the setting for a small project. Fantastic!
Killing Finnish Entrepreneurship With Tax
The debate on the tax code for entrepreneurs in Finland is becoming more surreal by the day. The origins of the debate lie in the tax code working group set up by the Finnish Parliament. This group, headed by Martti Hetemäki, is to devise a new tax code for areas such as capital gains, options and carried interest for VC funds. The biggest verbal and rhetorical battle is waged around the double taxing of dividends in non-listed companies.
Just as with any tax code, the more transparent and simple the tax code to understand, the better it incentivizes people to invest in a risky and uncertain future. The tax code should make it easier to see how the future plays out for businesses, not make it more difficult. All the scenarios the working group is considering are rather complex and won't help the state of entrepreneurship in the country.
The Nordic Paradox: Entrepreneurship As A Career Choice
Are Nordic countries particularly entrepreneurial? How do our societies perceive entrepreneurship as a career choice?
The perception already exists that the Nordic countries are among the most innovative in the world. The two most recent and comprehensive rankings supporting this belief came from the Economist Intelligence Unit and the Boston Consulting Group, both published in April 2009. The first of these studies ranked Japan as the most innovative country in the world, while in the second Singapore was at the top of the list. Nevertheless, Finland and Sweden ranked in the top ten for both reports, while Denmark and Norway also ranked impressively.
The Future Just Arrived - Grey Area Is Developing A New Kind Of Mobile Gaming Genre From The Ground Up
Grey Area, a small startup operating in stealth mode, is gearing up to change the cityscape for everybody. I get back to how they are going to do this later in the post, but the story of how this startup came to be is equally interesting.
I first met the guys back in OpenCoffee Helsinki what must be more than a year ago. I remember Mikko Hämäläinen telling me how they were exploring possibilities to set up a company with two of his friends, Andreas Karlsson and Teemu Tuulari, from Ericsson. All three had started at Ericsson in 2003-2004 and met when they were put in the small team with the task of developing an Ericsson network node.
The Bad And The Ugly: Entrepreneurship In Europe and In Northern Europe
This is one of those issues that is always topical and never gets a clear answer. Why do we comparatively suck so bad at building companies in Europe and especially here in the arctic latitudes vis-a-vis our cousins in the US. In the age of the Internet and 'born global' it has to be more than the size of the home market. Now, I'm not saying things have to be that way, nor am I saying that things are not changing. They are and we, but to what extent and what is it exactly that we need to change?
Here's a video of a group of prominent European and US entrepreneurs arguing around the topic. The one just below is from this year's LeWeb and the one below that from 2008 (when we took the Sauna Truck to France with a group of Finnish startups). Both videos are insightful, but even more than that they are entertaining. Make sure not to miss these.
The third video is Mårten Mickos' brilliant talk about entrepreneurship in general and entrepreneurship in Finland in particular from last night at Aalto Entrepreneurs Society gathering. The talk is a must see for every single entrepreneur regardless of the continent they are building their startup in, but it also sheds light into the cultural challenges that are in the way of building world's biggest anything.
Tax Exemption For Finnish Startups
Today The Finnish Software Entrepreneurs Association issued a press release (here in Finnish) demanding tax exemption for Finnish startups. Jaakko Salminen, head of the Association, argues that the current Finnish tax legislation is not fair for startups in comparison to the BigCo. To fix this the Association proposes that those startups that fund their operations from their own profits and are owned by the entrepreneurs themselves should be exempted from the corporate income tax. This of course means that those startups are profitable. Further, the tax legislation should promote all the measures that lead to M&A activity that increases the size of the company. The Finnish Software Entrepreneurs Association also go on to argue that such measures push up the employment figures and increase the tax revenue in the long run.
Currently the heaviest burden from the Finnish taxation is felt by the early stage startups that don't use debt leverage as much as BigCo, are owned by the entrepreneurs themselves and fund their day to day straight from the accrued revenues. Salminen goes on to argue that being exempted from corporate income tax would incentivise exactly these types of companies to leave the money in the company to fuel the growth, instead of taking out every last penny through dividends.
We concur, but can't see how this helps the pre-revenue stage companies that are not profitable, which is the type of startup where the need for tax, or any break, is the biggest. Profitable and promising startups should not have trouble getting investors interested in the. Conversely, even the promising, but riskier pre-revenue ones do.
The Future Is In Entrepreneurship
To kick off this week I want to take things to the macro level regarding entrepreneurship, politics and media. It is a topic we seldom talk about as we promote entrepreneurship here at ArcticStartup from the bottom of our hearts each and every day. I want to stress the importance of growth companies in our economies, as it is something that isn't given too much column space in the more traditional media. This is also one of the reasons ArcticStartup was founded - to give more coverage to growth companies and help them achieve more.
The topic in itself is very simple so we don't need to back it up with passion, all we need to do is look at the statistics. I've gathered some statistics from the Swedish statistics bureau (SCB) and the Confederation of Finnish Industries (CFI). While these only represent the systems in Finland and Sweden, I'm sure this can be extrapolated to other regions in Northern Europe with some adjustments. In this economic era, I'm focussing on the employment contribution these companies make to our economies since it is usually thought to be the most effective form of social welfare available.
Geek Girl Meetup Gathers 100 Women To Talk About Tech
ArcticStartup is joining Geek Girl Meetup as a media partner. Geek Girl Meetup is a Swedish unconference for women, by women, who are interested in technology, web, social media and entrepreneurship. The event takes place October 24-25 in Stockholm and is being organized for the second time despite its short existence. What started as a one day event for 50 participants in March has now turned into two day event with 100 women attending. And there're still ladies on the waiting list!
Win Exclusive Tickets To GoodMorning2019!
ArcticStartup is glad to be partnering with Stockholm School of Entrepreneurship to celebrate its decennial year with Good Morning 2019!
Good Morning 2019! is a full day event aiming to explore the future and investigating how organisations can become more entrepreneurial and innovative in order to stay competitive. Whether you represent a large company, a young start-up or you're a student, this is the day you shouldn't miss!
We have two exclusive tickets to give away to one lucky winner. Take a chance to get inspired, mingle and network with the industry in the beautiful Vinterträdgården at Grand Hotel in Stockholm!
The impressive list of speakers include so far an exciting mix of people such as Stefan Persson, Chairman of the Board H&M, Dr. Li Gong, CEO Mozilla Online Ltd, Jonas Hombert, CEO JayCut, and Anna Omstedt Lindgren, Tasteline and one of Sweden’s 101 top super talents by Veckans Affärer.
When: Friday, November 13th 2009 (9 Am - 5.30 Pm)
Where: Grand Hotel, Södra Blasieholmshamnen 8, Stockholm, Sweden
UPDATE Congratulations to the winner! Thank You all for tweeting!
All you need to do is to send a following tweet on Twitter:
I want to join @arcticstartup at #GoodMorning2019! + link to this article
Last chance to tweet before we draw a winner is on Wednesday October 14th at 12 Pm (GMT +1).
Hope to see you in Stockholm!
Using A Sales Process for Venture Capital
Daniel Blomquist from Creandum venture capital firm wrote lately how entrepreneurs should focus more on which VC to approach than how to approach. He argues that you can make more out of your time if you try to find out and select the most prominent VCs for your firm beforehand. As Ville Vesterinen and Daniel mention in successive post's comments, it is a sales job. But a bit of clarifying could be used to point out the similarities and try enlighten the whole process further. The fund raising process seems to be somewhat comparable to business-to-business selling process.
Entrepreneurship Forum Panel On Monetizing Digital Content
ArcticStartup with its passion for entrepreneurship is media partnering with the Entrepreneurship Forum in Stockholm, Sweden. The Entrepreneurship Forum initiative, co-founded by Daniel Blomquist at Creandum, aims to promote entrepreneurship and create a meeting place for everyone (students, entrepreneurs, investors) interested in entrepreneurship.
The topic at this second annual event is How to Monetize Digital Content and they've got a really interesting set up for panel including absolute top players pushing the new Internet economy forward.
Henrik Torstensson (SVP Stardoll and General Manager Piczo), Sorosh Tavakoli (CEO Videoplaza) and Ted Valentin (annonskartan, sushikartan etc.).
More reading on Stardoll, Videoplaza and Ted Valentin here at ArcticStartup.
Ville is coming over to moderate the panel so get ready for some good time and great insights!
See you there!
