[HN Gopher] Swedish tech startups and scaleups
       ___________________________________________________________________
        
       Swedish tech startups and scaleups
        
       Author : imartin2k
       Score  : 129 points
       Date   : 2022-08-14 11:09 UTC (11 hours ago)
        
 (HTM) web link (www.swedishtechnews.com)
 (TXT) w3m dump (www.swedishtechnews.com)
        
       | forthelastime wrote:
        
       | schiptsovgithub wrote:
        
       | mongol wrote:
       | Fun list to scroll through. I had no idea about most of these
       | startups, although some where familiar. For example, I saw
       | Grafana Labs in the list. And Klarna is not exactly a startup any
       | longer...
        
         | mrweasel wrote:
         | That's okay, many of them aren't tech companies either. I
         | didn't scroll past C, and I already seen a transport company, a
         | car rental company and a fitness subscription.
         | 
         | Just because a company uses computers in some form, doesn't
         | make them a tech company. I know many retailers who are just
         | that: retailers, who use pretty sophisticated software and
         | employ a ton of developers, but they aren't tech companies and
         | would never claim to be one.
        
         | arketyp wrote:
         | Not exactly a scaleup either...
        
           | imartin2k wrote:
           | Creator of the list here. For some of the companies on the
           | list the label "startup or scaleup" is debatable ofc. But I
           | often find it not to be a clear-cut thing in those cases.
           | 
           | I tried to use a mix of "criteria" such as company age,
           | whether it acts like a startup/scaleup (rapid innovation,
           | invests heavily in growth, needs external funding to get
           | going), whether it's covered intensely by the startup-focused
           | tech media etc.
           | 
           | To me, Klarna ticks those boxes.
        
             | arketyp wrote:
             | I agree, was just being witty. Impressive list -- cheers!
        
               | imartin2k wrote:
               | Thanks! Fortunately, I have been using the same structure
               | in all my 171 previous weekly newsletter issues. So while
               | it was a huge amount of copy & paste, the mental work was
               | fortunately limited. Still I do feel exhausted now.
        
           | ChuckNorris89 wrote:
           | Yeah, Klarna is rather more of a 'scale-down' recently.
        
         | kensai wrote:
         | Where is Paradox Interactive?!
         | 
         | Aaah. Not a startup anymore.
        
           | imartin2k wrote:
           | I am the creator of this list. I chose to exclude gaming
           | studios, because I don't really cover them in the newsletter,
           | and have not really any good overview of that sector either.
        
             | SOLAR_FIELDS wrote:
             | A shame, because IMO Sweden has one of the better gaming
             | start up scenes in the world as well.
        
               | sandebert wrote:
               | Might you perhaps be the Swedish musician Solar Fields,
               | who also made the music for the game Mirror's Edge?
        
               | ramigb wrote:
               | I have no idea if he is or he is not who you are asking
               | him, but it's super impressive that you can recognize a
               | musician name from working on a game. Respect for that
               | sir a lot of musicians would appreciate that.
        
               | sandebert wrote:
               | Thanks, but to be fair I also have a couple of his
               | albums. :-) (https://www.allmusic.com/artist/solar-
               | fields-mn0000645543)
        
               | SOLAR_FIELDS wrote:
               | I am not, only a fan of his music. Sorry to disappoint :)
        
               | sandebert wrote:
               | Not disappointed, just grateful you replied - thanks!
        
         | [deleted]
        
       | humbleferret wrote:
       | What a great list.
       | 
       | Are there any Swedish incubators similar to Y-Combinator that are
       | facilitating startup growth?
        
         | mankz wrote:
         | Sure:
         | 
         | https://sting.co/ https://www.abi.se/ and lots more listed at
         | https://www.sisp.se/medlemmar
        
         | Jolter wrote:
         | There are a few but nothing at the scale of yc, obviously.
        
         | danadalis wrote:
         | Antler
         | 
         | https://www.antler.co/
        
       | Jamie9912 wrote:
       | Isn't Spotify from Gothenburg?
        
         | dotcoma wrote:
         | No, AFAIK they are from Stockholm. Crunchbase also say they are
         | from Stockholm.
        
           | Shaanie wrote:
           | Yes, Spotify is from Stockholm. Though they do have a
           | Gothenburg office.
        
       | archydeb wrote:
       | I heard that Sweden's high income tax actually incentivised
       | startups, because the only way to get _seriously_ wealthy was
       | through capital gains.
       | 
       | Does anybody know whether that's true?
       | 
       | If so, it really undermines the narrative that is somewhat
       | dominant in Britain, that high income tax will disincentivize
       | entrepreneurship and innovation etc etc
        
         | teknolog wrote:
         | It is broadly true that you cannot accumulate wealth from
         | salary income as the salary bands are massively compressed.
        
         | ramraj07 wrote:
         | Even without the tax angle isn't this generally true? Except in
         | very rare cases of becoming CEO of an MNC or something.
        
           | cpach wrote:
           | You have a point - however, do you know what SWEs in the big
           | US cities earn theses days, working for "FAANG"? (Or Stripe,
           | Square, etc.) It's not very uncommon to have a yearly
           | compensation of 500-600k or more (USD).
           | 
           | In Sweden, very very few SWEs earn more than 80k/year.
        
             | pazx wrote:
             | I live in Sweden and most SWEs I know earn 6000usd or
             | 72k/year after only 5 years.
             | 
             | Earning above 100k is not uncommon.
        
               | cpach wrote:
               | _"Earning above 100k is not uncommon."_
               | 
               | OK, I believe that. Still a bit from a really good US
               | salary though.
               | 
               | Did you meet many SWEs that had a total compensation of
               | >5 MM SEK/year?
        
               | Shaanie wrote:
               | Earning over 80k SEK per month is uncommon. Not unheard
               | of, but uncommon.
        
         | INTPenis wrote:
         | I'm just a layman when it comes to all that but as someone who
         | was raised in Sweden and lived here all my life I feel like the
         | safety net that the government provides plays a huge role in
         | people feeling free to start their own business, or their own
         | band.
         | 
         | When you know you won't become homeless due to a failed venture
         | it becomes easier to take a chance on something.
        
           | kkielhofner wrote:
           | This is very accurate. While other Nordic and European
           | countries also have strong social safety nets (certainly
           | compared to the US) Sweden seems to have captured something
           | special.
           | 
           | For a country with roughly the population of the Chicago
           | metropolitan area Sweden punches well above their weight in
           | everything from startups to pop culture influence[0] to the
           | point where the referenced article calls Sweden "the
           | unofficial capital of pop music".
           | 
           | Turns out when you have a safety net it's a lot easier to
           | make the jump to forming your own startup vs the US where if
           | you leave your job the first step is to figure out how to get
           | healthcare (and pay for it). In the US you're much closer to
           | complete ruin if you leave a job to pursue your wild startup
           | idea.
           | 
           | [0] - https://www.thrillist.com/entertainment/nation/this-is-
           | pop-n...
        
             | waspight wrote:
             | I have heard that Stockholm is the Silicon Valley of Europe
             | as well so Sweden is going strong I guess.
        
             | RestlessMind wrote:
             | > Turns out when you have a safety net it's a lot easier to
             | make the jump to forming your own startup
             | 
             | I think you are overindexing on the safety net part.
             | Here[1] is a chart of startups per capita in Europe.
             | Looking at "startups per 1M inhabitants", Estonia has 1100+
             | while Germany has only 250 in spite of having a great
             | safety net (apparently).
             | 
             | Same article also shows that Sweden has 1769EUR VC funding
             | per capita, when Finland has only 854EUR and Denmark/Norway
             | don't even show up on the chart. All 4 countries have
             | similar cultures, no?
             | 
             | And let's not even talk about Saudi Arabia which spends a
             | lot on social safety net but I haven't seen much
             | entrepreneurial or artistic exports from that country (oil
             | doesn't count).
             | 
             | I believe "forming your own startup" requires a lot of
             | ingredients - ecosystem or flywheel (see: Silicon Valley),
             | funding for risky bets (see: USA), a bit of hunger,
             | education levels, culture of risk taking etc etc.
             | 
             | [1]
        
               | Southworth wrote:
               | I've done a bit of international work around startups and
               | government policy, as well as lots of checking out
               | various "startup"/entrepreneurial endeavours around
               | MENA,US and EU.
               | 
               | Safety nets, be that a psychological one ( the US with
               | the American dream ) or a welfare angle (sweden, Norway
               | etc) but what seems to be truest or at least in my
               | observation is the psychology of the country in terms of
               | its approach to supporting startups of all flavours
               | matters more. This means,broadly, it being considered an
               | acceptable and successful route of learning business and
               | is not a hyper risky endeavour.
               | 
               | In stable global north countries, it was, historically,
               | considered a radical act to not join a big national or
               | even multinational company. Hell, the terminology of the
               | description tells you the sense of import that we held
               | for the the large beasts of industry.
               | 
               | This all radically shifted with the advent of software,
               | games, websites, SaaS, PaaS etc etc.
               | 
               | It was perceived, over the last 40 years, no longer risky
               | to be in computers, but very wise, and a smart move.
               | 
               | With this rise of the geeks, then came adjacent
               | entrepreneurial activity, fancy coffee shops, better
               | food, etc
               | 
               | Now,this has probably played out one way or the other on
               | every country.
               | 
               | What I have seen, is that entrepreneurs are more present
               | and more numerous than ever, but there are numerous
               | obstacles in their way.
               | 
               | Import limits, sending money internationally, basic
               | banking, travel restrictions, gender limitations,
               | sexuality limitations, freedom of the press, dictatorial
               | governance with a lot of religion as the policy.
               | 
               | These are the limiting factors to growth. Investors will
               | always invest, we can derisk it somewhat with tax breaks,
               | but money makes money.
               | 
               | Ultimately what's designs a great startup ecosystem is
               | excellent people making excellent things with or without
               | government assistance and working together, as a cohesive
               | unit to celebrate and champion making cool shit for
               | money. Be it coffee, be it BBQ, be it software, be it
               | yoga.
               | 
               | Independent businesses require a state that trusts its
               | people, and the people trust the state.
               | 
               | Germany is an odd example, but from my experience with
               | German entrepreneurs is the risk tolerance of Germany
               | investors is very very low. So it's get customers then
               | get money. However, that said, Germany has produced a few
               | good businesses so perhaps there's a method!
               | 
               | It can never be one size fits all when it comes to
               | creating the perfect environment, much like gardening,
               | you've got to work with the strengths of the plot, the
               | soil, the weather etc.
               | 
               | However, if we all think we should replicate the valley
               | on our respective locations then we're truly missing the
               | strengths and values of our communities.
        
               | tored wrote:
               | Agree, if you examine Swedish modern history since the
               | industrial revolution you will find that Sweden has
               | always produced lots of startups (or the equivalent in
               | the old days) with both low taxes and high taxes, with a
               | welfare state and without.
               | 
               | High taxes and a welfare state do of course have some
               | role to play (positive and/or negative), but as you say
               | there other important parts that probably matter more.
               | 
               | One thing we can say empirically is that Sweden have had
               | it difficult to create large sustainable companies from
               | startups like it did hundred years ago, Spotify is a
               | notable exception.
        
           | xvedejas wrote:
           | I know for many the top concern is healthcare costs; however,
           | for me it is rent. Does the Swedish welfare system do
           | anything that would help with rent for startup founders? Or
           | does that still contribute as much risk as it would be
           | elsewhere?
        
             | pazx wrote:
             | The swedish welfare system will give you around 2000usd in
             | unemployment every month, depending on previous salary
        
               | xvedejas wrote:
               | If you're a founder of a startup working full-time and
               | unable to pay yourself a salary yet, can you receive
               | unemployment? (Maybe you would count this as
               | "underemployment"?) What if you left your previous job
               | voluntarily?
        
               | sofixa wrote:
               | In France, yes. You can apply to get the money you would
               | receive in unemployment benefits as an initial capital in
               | your startup (for paying yourself or for other expenses).
        
               | alkonaut wrote:
               | No but there are grants you can receive for starting
               | companies that lets you pay yourself a low-ish salary for
               | 6 months when starting up. This was extended to 12 months
               | during COVID I believe, unsure what it is now.
        
         | pazx wrote:
         | Income tax is 30-33% up to ~4500usd/month, for everything above
         | it is 50-55%. Capital income tax is 20-30% depending on the
         | type of capital.
        
         | alkonaut wrote:
         | I don't know anyone who started a business and did so to be
         | wealthy to be honest. Sure it's always a nice side effect but I
         | think all the people I know who started businesses would answer
         | "yes" to the question "do you want to do this even if you never
         | make more money than as an employee".
        
         | dazc wrote:
         | Look at Ireland, low corporation tax (we won't even force you
         | to pay it at all if you're big enough) and a booming economy -
         | producing feck all.
         | 
         | If it wasn't low taxes that achieved this then what was it?
        
           | andsoitis wrote:
           | Taxes are a part of the story, but neither the whole story
           | nor sufficient on its own. There are other countries with
           | lower corporate taxes, but with a worse economy.
           | 
           | Other things it's got going for it is a highly educated
           | English-speaking population, geographically favorable
           | location between Europe and the US, which, together with the
           | favorable tax policies, makes Ireland especially useful for
           | American tech and pharmaceutical companies.
        
         | Gravityloss wrote:
         | Stock options are taxed as salary income when excercised
         | though.
        
         | petestream wrote:
         | I would say it is true but more the entire environment. ~15
         | years ago in Sweden it was relatively easy to become middle
         | class. It was for its time accessible and affordable to have
         | things like education, housing and a family. At the same time
         | it was relatively hard to become upper-middle class because of
         | progressive income taxes, career paths and overall competition.
         | That meant there were a relatively large number of people
         | capable of starting and joining startups with low opportunity
         | cost of doing so. Which also meant there were more startups who
         | were interested in building something that is viable long-term
         | rather than to cash out quickly.
         | 
         | (This isn't really true anymore but that is a different story)
        
         | catears wrote:
         | My understanding, as a Swedish native, is that income from
         | labour is taxed rather high (i think 70%+ for income over a
         | certain amount). However, capital gains are taxed comparatively
         | low. The two most common ways tax either 30% of the profit, or
         | 1-3% of the annual total value (ish, I don't know the exact
         | numbers and they are probably changing from year to year).
         | 
         | How the incentives play out you have to ask someone else about
         | tough ;)
         | 
         | Edit: Got curious and looked up income tax. Turns out I was
         | slightly wrong, Income is regularly taxed around 55% for really
         | high income, but if you also count in VAT ("moms" in swedish)
         | you get ~70% taxation.
        
           | alkonaut wrote:
           | Top marginal rate of tax paid by the employer is 55.5%.
           | Employer pays some payroll taxes too but those usually aren't
           | included when comparing income tax. As a rule of thumb it
           | costs the employer $1.50 to pay someone $1
        
           | perbu wrote:
           | It is pretty interesting to see, though. Sweden has a lot of
           | "old money" and they seem to quite happy letting then keep
           | it.
        
             | jacobr wrote:
             | The Swedish welfare state involved a lot of compromise and
             | give and take. The system benefits workers in some areas
             | and capital owners in others.
        
           | hoschicz wrote:
           | You can't add 55+25 like that; VAT is 25 % of the 45 % left
           | over. So maximum total marginal tax rate is 66.25 %
        
             | jollybean wrote:
             | It's still uncompromisingly brutal in the minds of most
             | people.
             | 
             | The 'Swede' I know best (Doctor) left for that reason.
             | 
             | The argument most often used is 'But I Get Good Services' -
             | which I'm suspicious of because 1) well, you could just
             | keep the money and spend on the services you want, instead
             | of the services the state chooses for you and 2) there's
             | incredible efficiency in private institutions. I don't see
             | any government in the world ever making a good 'Spotify'.
             | Despite it's flaws, it's nice to have 'music when I want
             | it'.
             | 
             | In short, probably thinks like 'Healthcare for Everyone'
             | (though maybe not socialized entirely) and better
             | retirement comp. are really good ideas and should be
             | universally applied (much as we now know that 'central
             | economic planning soviet style' is a bad idea).
             | 
             | But 2/3's to the State is just a gigantic amount.
             | 
             | Even a small adjustment such as '15% must go towards your
             | Healthcare Insurance' and then let people pick plans, or,
             | 10% must go to a 'Retirement Savings Plan' (of which some
             | of it cannot be withdrawn until 65 and some of it pooled)
             | might even be beneficial.
             | 
             | I think that would start to create some social nudging
             | functions (i.e. payment for Healthcare) while being a bit
             | more fair (i.e. service quality sometimes proportional to
             | money put in).
             | 
             | And maybe the 66% kicks in, but at some much, much higher
             | rate, like over 1M in income.
             | 
             | Finally, we don't seem to account for just 'organizational
             | intelligence' which I think is the biggest difference.
             | 
             | When I see the lunches Swedish kids get I don't think 'they
             | are rich' I think 'they are smart'.
             | 
             | Lunches, esp. mostly vegetables do _not_ have to be
             | expensive, I think the whole  'burgers and tater tots' you
             | see in USA is just stupid, lazy thinking.
             | 
             | Just being a bit creative with the menu, a bit
             | conscientious with the process, and esp. having children
             | help quite a bit would help. Any school kid can do
             | 'something' and past age 8 they can wash veggies, help
             | clean up, sweep. They do this in Japan for a lot of things,
             | why can't we? I suggest children can even learn to prepare
             | certain kids of veggies responsibly.
             | 
             | Since a lot of education is kind of just 'daycare' why not
             | give them some _responsibilities_ as well? I mean, it 's
             | like a 'win win'.
             | 
             | The remaining meal functions can be done by a staff.
             | 
             | We can't avoid inherent costs in things but I suggest there
             | is _enormous_ upside in being intelligent about things in
             | 'whatever' systems: Drugs, Incarceration etc..
             | 
             | My minimal exposure to Swedish startups is that they have
             | _way_ better communications - they present their concepts
             | using language, visuals, way ahead of others. This despite
             | Swedish formal education system flailing a little bit
             | behind others (that 's a complicated thing). p All of that
             | said I 100% agree that 'safety net' will improve the
             | likelihood of participation 'early stage' startups, not
             | sure what it means beyond that stage.
        
               | jacobr wrote:
               | > I think that would start to create some social nudging
               | functions (i.e. payment for Healthcare) while being a bit
               | more fair (i.e. service quality sometimes proportional to
               | money put in).
               | 
               | An interesting definition of "fair" - in Sweden the
               | principle is equal health care prioritized according to
               | who needs or benefits most from the care, not how much
               | you pay. If you see it from that point of view, tax is
               | not a transaction where you pay for the services you
               | receive. You pay for the _society_ you receive, which
               | includes people in general being more healthy, not just
               | yourself.
        
               | jollybean wrote:
               | Most people would reject the idea that someone works hard
               | all of their life gets the same healthcare that someone
               | who does nothing.
               | 
               | Most people are somewhere in the middle, but there
               | absolutely are people do nothing and people who are
               | always being constructive, some in powerful ways.
               | 
               | A society in which 100% of resources would be allocated
               | in that manner (basically communist) would completely
               | fall apart.
               | 
               | I think 'same treatment Healthcare' is actually a bit of
               | a hard-socialist idea that happened to make it's way
               | through society historically (because it needed to have
               | some socialization) but that will ultimately fail, it's
               | on the edge in Canada right now as they are discussion
               | private options.
               | 
               | In much the same way I think fully-private healthcare is
               | a failure.
               | 
               | For the later (fully private) we have to understand the
               | mechanisms are not the same as for regular products or
               | even food etc. - there are existential issues which
               | create gigantic asymmetries. So there must be heavy
               | regulation and likely socialization in certain aspects.
               | 
               | But the converse is still true: 'everyone the same' is a
               | disaster for most of the economy, it's also maybe not
               | such a good idea for healthcare.
               | 
               | FYI - in Sweden the are Private Clinics.
               | 
               | In Canada, where I am from, we have pretty crazy laws,
               | some of those most limiting in the world.
               | 
               | It's _illegal_ to provide private services for all but a
               | minority of issues.
               | 
               | Just consider that: a mechanic can fix your Mazerati, but
               | it's illegal for them to fix your arm.
               | 
               | In practice - there is filtering. 'Important People'
               | somehow manage to get good access, like Sports Stars,
               | politicians. Actual Doctors/Hospitals are not owned by
               | the government (as they are in UK) so they are selective,
               | but the billing rates are theoretically the same.
               | 
               | On the other end, you may or may not get the surgery
               | depending on if you're an alcoholic/smoker etc..
               | 
               | Due to all of this there are very, very weird asymmetries
               | in Healthcare all over the place, notably Doctor's guilds
               | controlling access to their domain, pricing insanity in
               | the US for actual services, insane drug prices due to IP
               | laws and lobbying, inability of governments to innovate
               | effectively. One weird artifact of the later is how much
               | we have to depend on the advancements of other nations.
               | 
               | The NGO style they have in the US is an interesting model
               | as well.
        
         | [deleted]
        
         | codethief wrote:
         | No idea about the situation in Sweden but generally speaking
         | I'd say it depends a lot on whether "income" in "income tax"
         | also includes capital gains.
        
           | Jolter wrote:
           | It does not, in Sweden.
        
           | geysersam wrote:
           | Don't know any country where it does. In Sweden it certainly
           | doesn't.
        
             | LtWorf wrote:
             | It doesn't but they are taxed the second you sell them off.
             | 
             | So cool... you're rich but if you actually want to use the
             | money it is taxed.
        
               | kevinak wrote:
               | Actually... Sweden has a large loophole for extremely
               | rich people. Stick it all in a "Capital Insurance"
               | product and pay a low yearly tax on the amount, rather
               | than the gains.
               | 
               | It kind of makes Sweden into a low tax haven if you're
               | only living off capital.
        
               | pazx wrote:
               | Income tax and capital gains tax are two different things
               | and two different rules sets. In Sweden income tax is max
               | ~56% while max capital gains is 30%.
        
               | kevinak wrote:
               | Don't forget to add the "totally not income tax" aka
               | arbetsgivaravgift at another 30% :D
        
         | peyton wrote:
         | The only thing that incentivizes startups is access to capital.
         | You need rich people.
        
           | petestream wrote:
           | Most of the inherent cost of a startup is salaries (offices
           | usually second). Most of salaries goes for paying for housing
           | (with market rate and education usually being the other major
           | costs).
           | 
           | Say you have two startup environment. One where it is
           | affordable with housing, education and most people could try
           | to start a startup and another where those things are
           | expensive and few can. Which one requires more capital and
           | which one is more successful?
           | 
           | Investments are something you get when attractive companies
           | are being created. Not something that creates attractive
           | companies in itself. Plenty of countries have plenty of rich
           | people but most don't stand out in terms of successful
           | startups.
        
           | varispeed wrote:
           | This grinds my gears as this attitude essentially reinforces
           | the serfdom in the society. If you are born into a working
           | class you will remain working class.
           | 
           | The salaries are taxed in a way that a worker cannot easily
           | save money to start their own business, they need to beg
           | bankers for a loan or go cap in hand to the rich people - and
           | oh be sure they'll have to give shares to the business.
           | 
           | In the UK we used to have a nice route for workers to build
           | up their start up fund - basically you could create a company
           | and sell your (and your co-founders) services to other
           | companies. You could pay yourself a small salary or dividend
           | or both to be able to cover rent, bills and day to day
           | outgoings and in a year or two you could have amassed
           | sizeable capital while gaining expertise. As an example, if
           | you wanted to sell Kubernetes based SaaS product, you could
           | have offered Kubernetes maintenance services etc and learn
           | what kind of pain points corporations have and then work on
           | incorporating solutions into your start up offering. Problem
           | is that government believed it was a tax avoidance and closed
           | this route (IR35). Now you can still offer services, but you
           | are getting taxed on revenue which has no advantage over just
           | being an employee and taking forever to save money.
        
             | dazc wrote:
             | The Gov't believed it was tax avoidance for the simple
             | reason that it was.
             | 
             | It is still possible to build a business in the UK the old
             | fashioned way of working hard and making personal
             | sacrifices.
        
               | varispeed wrote:
               | Government was never able to prove it was a tax
               | avoidance. If you wanted to draw all the money from the
               | company you would pay broadly the same tax as an
               | employee. The only angle that one may consider as
               | avoidance was that the client wouldn't have to pay
               | employer's NI - but given the freelancer services were
               | charging considerably more than employees, that wasn't an
               | incentive either and they weren't employees, so it
               | shouldn't apply either. Basically tax avoidance angle is
               | a red herring and based on research it was the best
               | carrier for this law to gain public acceptance plus it
               | could paint freelancers in a bad light. The real reason
               | this was adopted, was that big consultancies had a hard
               | time competing with freelancers - they offered better
               | price and expertise and as it happens a lot of government
               | members and party members have vested interest in these
               | corporations.
        
           | missedthecue wrote:
           | Exactly. How many tech startups today are funded directly or
           | indirectly by successful founders and tech workers? Is 90%
           | understating it?
        
           | tommiegannert wrote:
           | You could also run pools via institutional funds. Why do we
           | need rich people?
           | 
           | I'd think the rich people is a side-effect of successful
           | pooling in finance. If you can get away with fees of >1% for
           | "just" finding PE deals, that sometimes ramps up profits
           | really fast.
        
         | marsven_422 wrote:
        
       | robalni wrote:
       | What's up with all these two-dimensional solid color people
       | graphics that often have unrealistic colors or body shapes? I see
       | them _everywhere_. Here are a few examples from the list:
       | 
       | * https://metry.io/img/metry-product-information.png
       | 
       | * https://norban.se/assets/img/front-page/section-1/room_7@1x....
       | 
       | * https://nordtechgroup.com/wp-content/uploads/2021/08/undrawd...
       | 
       | * https://www.nuvoair.com/_nuxt/img/home-enterprise-img.97f461...
       | 
       | * https://sanitation360.se/wp-content/uploads/2020/12/puff_pro...
       | 
       | * https://securifid.se/wp-content/uploads/2021/10/kvinna-locki...
       | 
       | * https://www.sinch.com/sites/default/files/styles/medium_hq/p...
       | 
       | * https://workamo.com/img/hero-image.png
       | 
       | * https://www.airmee.com/images/icon_airmee_delivery-fresh.png
       | 
       | * https://www.budid.se/images/video-min.png
        
         | sgt wrote:
         | I have a friend who looks exactly like that. Tiny head, huge
         | body.
        
         | vimy wrote:
         | I really dislike this graphical style. It's been a couple years
         | now so I hope something else will replace it soon.
        
           | robalni wrote:
           | This site has some more interesting graphics:
           | https://www.gamifiera.com/
        
         | jollybean wrote:
         | It's just a marketing meme.
         | 
         | It's actually really hard to get photos of real people in
         | positions and context you want, and, there are so so many
         | mitigating factors when there is more realism.
         | 
         | Cartooish characters radically simplify everything. Even things
         | like DEI - not enough 'People of Colour' , that can be changed
         | instantly.
         | 
         | One could just remove all of that and be judicious about the
         | use of 'people' (Apple does that - not a lot of 'people' in the
         | docs etc.) but then you lose the 'human connection'. People
         | 'relate to' People.
         | 
         | Once a few companies start doing it the 2cnd then 3rd tier
         | follow for reasons they may not understand (copying happens a
         | lot, it's just like 'benchmarking', it's 'easier' and 'safer').
         | 4th tier never cared.
        
         | lancebeet wrote:
         | This art style is called "Alegria" or "Corporate Memphis".
         | 
         | https://en.wikipedia.org/wiki/Corporate_Memphis
        
       | pluijzer wrote:
       | I've pasted 150 items of this list to OpenAI and let it figure
       | out what my username would be as a Swedish startup, the answer is
       | 
       | Pluijzer (Stockholm, social enterprise that develops innovative
       | solutions for a plastic-free future)
       | 
       | So guess I have to start doing that ...
        
         | carlbarrdahl wrote:
         | What are the 80/20 pareto efforts in terms of reducing plastics
         | today? For example in cities and oceans as target areas.
        
           | wongarsu wrote:
           | In terms of reducing plastic pollution, the big things imho
           | would be garbage collection for 3rd world countries (in many
           | places "dump it in the river" is the only viable solution),
           | biodegradable fishing nets, and more waste-fired power plants
           | for plastics we can't efficiently recycle.
        
       | eandre wrote:
       | Founder of Encore here (on the list). Great to see so many
       | wonderful companies represented. Sweden is a great place to start
       | a startup these days.
        
         | dijit wrote:
         | I'm starting a subsidiary of a start-up in Germany in Sweden.
         | 
         | It's not my experience that Sweden is a great place for
         | startups, the bureaucracy is extremely hit/miss. Setting up tax
         | information for example is really difficult as a non-Swedish
         | speaker and even tripped up my Swedish speaking friend (who is
         | a project coordinator on the new Skane hospital: so she's
         | somewhat aware of the tax system). How much of your daily work
         | will be administration, how much will be selling services, how
         | much money will you make do you estimate; you must give us an
         | estimation: if it's too far off then we will fine you!
         | 
         | Information in English is... scarce, but gives the illusion of
         | being available.
         | 
         | Hiring is also very complicated, you have to be very explicit
         | in your contracts because anything not spelled out immediately
         | falls in favour of the employed; which is nice, but as a novice
         | employer that's very scary, because I don't know everything
         | obviously.
         | 
         | What in your mind makes you think it's a good place?
        
           | pazx wrote:
           | All of these things are easy if you know how to do them. But
           | if you have never done them, it takes some time to learn. My
           | advice is get an external accountant to do this for you, only
           | takes a few hours and they can teach you everything you want
           | to know.
        
           | raverbashing wrote:
           | What makes you think that setting up a subsidiary is a "DIY"
           | thing anywhere, especially if you don't speak the language?
           | 
           | (Sweden is still probably easier than Germany, though that's
           | a low barrier tbh)
           | 
           | Edit: good to know about the UK
        
             | dijit wrote:
             | Because I did it in the UK and it was very much a DIY
             | thing.
             | 
             | 14GBP to Companies House, extra 10GBP to reserve the right
             | to your name.
             | 
             | File your books every year, expect to be audited randomly
             | for a few years.
        
               | eandre wrote:
               | But you need a UK bank account, which requires a officer
               | with a registered address in the UK. We were lucky our
               | investors were UK-based otherwise it would have been a
               | nightmare. Then you need to argue HMRC valuation
               | discounts if you want to issue EMI options, which are
               | only valid for 3 months, so you need to do it repeatedly.
               | And then EMI option schemes are 15+ pages long contracts.
               | Sweden has an equivalent stock option scheme that's ~2
               | pages, in comparison.
        
               | varispeed wrote:
               | Aren't EMI options basically a scam? I never understood
               | why company cannot just give an employee real shares. I
               | was at a start up a couple of years ago and was promised
               | these. Basically every month CEO had a new excuse that
               | HMRC this or HMRC that. After a year and a half I decided
               | to leave, because I understood I would never get any of
               | that. Now when I see company offering EMI shares it is a
               | clear red flag for me. E.g. if you offer PS50k in EMI
               | shares just pay a lump sum instead and I can put this on
               | my ISA tracking fund or just give real shares in the
               | company.
        
               | IneffablePigeon wrote:
               | EMI gives both tax advantages and means you owe no tax
               | when being offered the option. 50k as a lump sum would be
               | taxed as income (so, fairly heavily). 50k in shares might
               | attract a similar tax bill to be paid directly by the
               | employee far in advance of any chance of recouping the
               | value of the shares.
               | 
               | EMI itself is not a scam. Whether a company follows
               | through on giving you the options in a reasonable
               | timescale is another thing, and whether the shares are
               | eventually worth anything is another again. As with all
               | things startup option/share related, consider it a
               | lottery ticket with an unknown chance of paying out.
        
               | varispeed wrote:
               | So this is a sort of HMRC sanctioned tax avoidance
               | scheme. Given that they are in a business of enacting
               | retrospective taxes, I wouldn't trust that they are not
               | going to change their mind down the line and ask for an
               | extra tax.
               | 
               | That being said, PS50k after all the tax is still better
               | than PS0 and if the PS50k was paid as a one off bonus,
               | you could pay it into SIPP without paying tax.
               | 
               | I remember when I asked them why I cannot get normal
               | shares? They said that EMI will be better for me because
               | I will save on tax. I said, why if I want to pay tax, it
               | pays for our schools, hospitals, why should I be taking
               | the advantage? So they said that the board don't want to
               | do that, because it will create "a legal issue" when they
               | will be looking for next round of investments.
               | 
               | So if any future employee reads that, if a company insist
               | on EMI shares and don't want to give you real shares or
               | money upfront, then jump the ship!
        
               | dijit wrote:
               | > But you need a UK bank account,
               | 
               | Sure, I assumed this because you need that in any country
               | you operate a legal entity.
               | 
               | > which requires a officer with a registered address in
               | the UK.
               | 
               | This is the same in Sweden too
               | 
               | > Then you need to argue HMRC valuation discounts if you
               | want to issue EMI options, which are only valid for 3
               | months, so you need to do it repeatedly. And then EMI
               | option schemes are 15+ pages long contracts. Sweden has
               | an equivalent stock option scheme that's ~2 pages, in
               | comparison.
               | 
               | You have more experience than me there, I never had this
               | as a problem to solve so you could be right.
        
               | eandre wrote:
               | AFAIK in Sweden you need a managing directory who is
               | resident in the European Economic Area (EEA), not
               | necessarily in Sweden.
        
               | dijit wrote:
               | You must have at least one legal representative, usually
               | a director, in Sweden.
               | 
               | You can apply for temporary exemptions, but they are
               | temporary and you are supposed to have good reason.
               | 
               | There's no explicit requirements that any particular
               | position must be held in Sweden, you can be a VD in the
               | EEA for example, but you still need at least one legal
               | responsible person to be domiciled.
        
               | pazx wrote:
               | No you don't, it is very clear. Within EEA, not in
               | Sweden. I work in accounting and we just solved this for
               | a Spanish client without any initial employees in Sweden.
        
           | eandre wrote:
           | We've set up a UK subsidiary so I can relate, but the process
           | in Sweden was approximately 10x simpler: more automated, less
           | bureaucracy, less ongoing admin work when the company is up
           | and running.
           | 
           | As with all countries there are definitely things you need to
           | learn. We relied on our lawyers to draft employment
           | agreements because we were already using them as part of our
           | seed fundraise. There are companies like Pocketlaw
           | (https://pocketlaw.com) that provide solid, standard
           | agreements that you could use.
        
           | erispoe wrote:
           | Do you have resources on the simplest way to establish a
           | startup in Germany?
        
           | idlehand wrote:
           | There is an abundance of experienced engineers who are
           | willing to work for less than an entry-level engineer in the
           | US. Wages are very low even in Stockholm. Great if you want
           | to build a tech startup.
           | 
           | Unfortunately the employment law is written in support of
           | factory workers, not knowledge workers. So many employers are
           | very cautious when hiring because a non-performing employee
           | is very expensive to get rid of, as long as they have been
           | employed for 6 months or more.
        
             | torginus wrote:
        
         | dudul wrote:
         | Can you explain why?
        
         | idlehand wrote:
         | Unfortunately taxes are high. 20.6% corporation tax and 30%
         | capital gains tax.
        
           | kzrdude wrote:
           | 20.6% is lower than Denmark, Austria, Germany, France,
           | Netherlands, Belgium, etc. It's on the lower end, while not
           | being lower than the UK and of course not Ireland (considered
           | a semi tax haven).
        
             | ninjin wrote:
             | Starting 2023 it will be lower than the UK as well for any
             | business above GBP 250,000 when HMRC bumps that rate to
             | 25%. Heck, I would argue that even 20.6% is not that
             | different to the current 19% across the board in the UK.
        
               | varispeed wrote:
               | If you are reinvesting money in the company (especially
               | at a start up stage), Corporation Tax is the least
               | important tax. More important is how much employees cost
               | and UK is up there with the highest taxed countries in
               | the world. If you want to pay workers more than peanuts,
               | the tax take is more than 50% on a salary (when including
               | Employer's NI).
        
       | LtWorf wrote:
       | How many of those are actually "contracted for the development"
       | by a company in Malta?
       | 
       | The swedish startup I used to work for was setup in this way to
       | scam taxes.
        
         | jsty wrote:
         | The "contracted for development" setup is common amongst multi-
         | territory IP-heavy businesses. You choose a country to hold all
         | the IP and have other locations sell development services to
         | that country's legal entity.
         | 
         | You can do it to fiddle around with tax, but it's separately
         | quite sensible to hold all your IP in a single region & entity
         | to minimise the complexity - otherwise you'd have every
         | territory licensing IP to every other territory, a.k.a an
         | absolute mess.
        
           | LtWorf wrote:
           | There was no "multi territory", it was a shitty startup with
           | a bunch of people sitting in a room and sharing the office
           | with another startup that was also owned by kinnevik (swedish
           | VC). It was set up that way to not pay taxes in case it would
           | ever make money.
        
       | bazhand wrote:
       | I joined Proxify (on the list) recently and was pleasantly
       | surprised to find a quite vibrant tech scene. As someone who
       | followed the more traditional startup hubs like Amsterdam, Berlin
       | or Dublin, I've found that there are many gems in the Nordics.
        
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