Innovation Inspiration
Similar to the midnight sun that covers Iceland’s beautiful landscape in summer, the country’s lavish banking wealth was clearly evident, almost unavoidable, during the Viking nation's economic boom experienced in the early 2000s. In fact, leading up to the 2008 economic collapse there was no better place to be a investment professional. Recent college graduates instantly became millionaires, attracting the best and the brightest students to shape a career path in the financial sector.
Once the 2008 banking collapse reared its ugly head, the poor decisions and faulty loans of the Icelandic business professionals forced an entire generation of up-and-coming students to reconsider their career path. What was once a forgone conclusion, now presented a dead-end for promising scholars. And like a cruel magic trick, numerous white-collar workers who had envisioned a career in banking, now saw their life on easy street vanish in a puff of smoke. Thus, not by choice, but rather out of necessity, Icelanders began to innovate. The banking structure sank, so a new wave of Icelandic entrepreneurs started to swim.
The Perfect Sample Size
Iceland’s size and geographical efficiency provides a great environment to harbor innovation. Because there are only 325,000 people and a significant portion of the population and resources can be found in the Reykjavik area, the capital's metropolitan footprint provides the perfect sample size to test and develop an idea. Furthermore, the start-up community is a tightly knit group of innovators that lean on each other for resources and best practices. The utilization of these resources is mutually beneficial, and has helped young Icelandic companies overcome the difficulties of starting a new business. This comes in stark contrast to the cut-throat environment of the start-up culture in Silicon Valley.
Iceland’s size and geographical efficiency provides a great environment to harbor innovation.
Inspired by Iceland's recent surge of new business creation, Greenqloud CEO Bala Kamallakharan launched Start Up Iceland in 2012, a convention to help support the Viking nation's thriving start-up community. Influential investors and entrepreneurs from Iceland as well as North America and Europe participated in the event that not only served as a great networking tool, but helped publicize the innovation occurring in Iceland. All signs indicate that the Icelandic start-up trend is here to stay. The number of new businesses has grown every year since 2009. Additionally, Iceland has the youngest labor pool in Europe with 66.4% of the population aged between 15 and 64, creating a vibrant workforce eager to make a name for themselves.
Hjalti Hardarson, the co-founder of the Icelandic media app Kjarninn explained, Thanks to programs like Klak Innovit, Start-up Reykjavik, and Start-up Iceland, the start-up environment has been able to grow to a noticeable size of the Icelandic economy. Hjalti also reiterated the fact that the Icelandic start-up community is here to stay, Icelandic companies have been getting more and more attention from investors as new funds have been raised in order to facilitate these kind of start-up programs. Thus, the infrastructure is in place to support growth.
Success Stories
Less than 1% of all mobile applications are financially successful. Therefore, creating a economically viable app that users will consistently download not only requires a brilliant idea, but the follow-through to make that idea a reality. Two Icelandic start-ups, Meniga and QuizUp, have managed to accomplish this feat thanks to persistent efforts to give the consumer want they want. Here are their stories, as well as some of the other Icelandic start-up case studies.
Meniga is a provider of personal finance software (PFS) that works with European banks to provide banking customers with a more efficient way to manage their personal finances. Essentially, the Meniga app allows the user to view all kinds of financial data about their spending habits, such as you spent 33% of your income on groceries. The application also allows its customers to compare this data with general statistics such as the average amount spent by other users on groceries was 25%. Meniga has been an unqualified success because this information has helped consumers improve their financial behavior. Banks also love the app because Meniga's services have improved customer loyalty as a result of the pertinent financial information available to the bank's retail customers.
QuizUp is a gaming application that has turned into the biggest trivia game in the world. With over 220,000 questions and hundreds of topics, the Icelandic start up has grown its user base to over 10 million people worldwide. The creator, Thor Fridriksson, modeled the game after other addictive apps such as 'Words with Friends' and 'Draw Something' with a design that Fridriksson describes as simple and familiar. The interactive game allows users to compete with friends or challenge a stranger with all games played counting towards an overall experience level. The success of this revolutionary, yet simple, idea has sent the QuizUp app to the top of the iTunes Free App charts.
CCP Games (Crowd Control Productions) is the world's largest independent developer of multiplayer games that helped pave the way for the tech craze in the Iceland. Founded in 1997, the company is probably best known for its role as senior producer for EVE Online, a science-fiction game that has hundreds of thousands of online subscribers worldwide. Furthermore, CCP has been praised for its artistry, game design and unique player-driven, infinitely scalable storytelling narratives. The company is headquartered in Reykjavik, but has expanded to offices in Atlanta, Newcastle, and Shanghai and employs over 600 workers.
Clara is a Reykjavik based start-up that specializes in business and marketing intelligence. Clara produces community analytics tools that allow businesses to understand, monitor, and engage with their members on online platforms. Clara was recently sold to Jive Software of Silicon Valley for $9 million.
GreenQloud is a cloud solutions company offering green cloud computing virtual servers and data storage powered by renewable energy. This green company is a great example of the competitive advantage Icelandic start-ups can offer due to the abundance of geothermal energy produced domestically. GreenQloud has also benefited from government grants, as the Icelandic lawmakers have jumped behind this promising start-up.
Sustained Growth
While Iceland is a great test market for start-up businesses, most Icelandic companies must go abroad for any hope of sustainable financial success, which means tailoring their efforts towards an international crowd. Kjarninn's Hjalti Hardarsson agrees, stating that, I think the market size can be the biggest hurdle, so most Icelandic start-ups try to have some internationalization in their product. While sometimes the internationalization of a product simply means creating an easy-to-navigate site or app that offers a practical website site and application design. However, internationalization also means accommodating the language or traditions of an international crowd.
Icelandic is one of the hardest languages to learn in the world, and the overwhelming majority of potential customers will not speak the Icelander's native tongue. While most Icelander's do speak good English, finding the right developers to customize the apps to an international consumer is an important feature of sustained growth. Icelandic children learn English around ten years old in school and usually have some experience with the language through American or British pop-culture. However, speaking proper English as well as learning how to read and write grammatically correct is a different issue.
There are an estimated 500,000 people that speak Icelandic worldwide, and there are an estimated 1 billion people that speak English as a first or second language.
During my time living in Reykjavik, I have seen numerous Icelandic websites with limited English options or poor, unprofessional grammar. Regardless of my interest in the potential website or application, if I can't understand the text, I'm not going to engage with the business. Therefore, a key ingredient in the Icelandic start-up movement, must be their focus on English speaking customers. This is an important factor regarding the success of Meniga, QuizUp, Clara, and GreenQloud. There are an estimated 500,000 people that speak Icelandic worldwide, and there are an estimated 1 billion people that speak English as a first or second language.
The Icelandic Spirit
Starting a new business has an inherent risk that deters a significant portion of the population no matter what country you hail from. However, much like a dog backed into a corner, having the tenacity and will to overcome the obstacles in creating a successful business rewards those who take the chance on a good idea. Icelander's were metaphorically backed into a corner after the banking crisis and I think it was this environment of desperation that gave them the fight and inspiration to begin starting new businesses. Hardarson agrees, I think the financial collapse did change how many people valued their professional career. When you lose your job it forces you to reflect. Therefore, the spirit of innovation that resulted from the banking collapse will continue to inspire Icelanders to keep their entrepreneurial edge.
Innovation Inspiration
Similar to the midnight sun that covers Iceland’s beautiful landscape in summer, the country’s lavish banking wealth was clearly evident, almost unavoidable, during the Viking nation's economic boom experienced in the early 2000s. In fact, leading up to the 2008 economic collapse there was no better place to be a investment professional. Recent college graduates instantly became millionaires, attracting the best and the brightest students to shape a career path in the financial sector.
Once the 2008 banking collapse reared its ugly head, the poor decisions and faulty loans of the Icelandic business professionals forced an entire generation of up-and-coming students to reconsider their career path. What was once a forgone conclusion, now presented a dead-end for promising scholars. And like a cruel magic trick, numerous white-collar workers who had envisioned a career in banking, now saw their life on easy street vanish in a puff of smoke. Thus, not by choice, but rather out of necessity, Icelanders began to innovate. The banking structure sank, so a new wave of Icelandic entrepreneurs started to swim.
The Perfect Sample Size
Iceland’s size and geographical efficiency provides a great environment to harbor innovation. Because there are only 325,000 people and a significant portion of the population and resources can be found in the Reykjavik area, the capital's metropolitan footprint provides the perfect sample size to test and develop an idea. Furthermore, the start-up community is a tightly knit group of innovators that lean on each other for resources and best practices. The utilization of these resources is mutually beneficial, and has helped young Icelandic companies overcome the difficulties of starting a new business. This comes in stark contrast to the cut-throat environment of the start-up culture in Silicon Valley.
Iceland’s size and geographical efficiency provides a great environment to harbor innovation.
Inspired by Iceland's recent surge of new business creation, Greenqloud CEO Bala Kamallakharan launched Start Up Iceland in 2012, a convention to help support the Viking nation's thriving start-up community. Influential investors and entrepreneurs from Iceland as well as North America and Europe participated in the event that not only served as a great networking tool, but helped publicize the innovation occurring in Iceland. All signs indicate that the Icelandic start-up trend is here to stay. The number of new businesses has grown every year since 2009. Additionally, Iceland has the youngest labor pool in Europe with 66.4% of the population aged between 15 and 64, creating a vibrant workforce eager to make a name for themselves.
Hjalti Hardarson, the co-founder of the Icelandic media app Kjarninn explained, Thanks to programs like Klak Innovit, Start-up Reykjavik, and Start-up Iceland, the start-up environment has been able to grow to a noticeable size of the Icelandic economy. Hjalti also reiterated the fact that the Icelandic start-up community is here to stay, Icelandic companies have been getting more and more attention from investors as new funds have been raised in order to facilitate these kind of start-up programs. Thus, the infrastructure is in place to support growth.
Success Stories
Less than 1% of all mobile applications are financially successful. Therefore, creating a economically viable app that users will consistently download not only requires a brilliant idea, but the follow-through to make that idea a reality. Two Icelandic start-ups, Meniga and QuizUp, have managed to accomplish this feat thanks to persistent efforts to give the consumer want they want. Here are their stories, as well as some of the other Icelandic start-up case studies.
Meniga is a provider of personal finance software (PFS) that works with European banks to provide banking customers with a more efficient way to manage their personal finances. Essentially, the Meniga app allows the user to view all kinds of financial data about their spending habits, such as you spent 33% of your income on groceries. The application also allows its customers to compare this data with general statistics such as the average amount spent by other users on groceries was 25%. Meniga has been an unqualified success because this information has helped consumers improve their financial behavior. Banks also love the app because Meniga's services have improved customer loyalty as a result of the pertinent financial information available to the bank's retail customers.
QuizUp is a gaming application that has turned into the biggest trivia game in the world. With over 220,000 questions and hundreds of topics, the Icelandic start up has grown its user base to over 10 million people worldwide. The creator, Thor Fridriksson, modeled the game after other addictive apps such as 'Words with Friends' and 'Draw Something' with a design that Fridriksson describes as simple and familiar. The interactive game allows users to compete with friends or challenge a stranger with all games played counting towards an overall experience level. The success of this revolutionary, yet simple, idea has sent the QuizUp app to the top of the iTunes Free App charts.
CCP Games (Crowd Control Productions) is the world's largest independent developer of multiplayer games that helped pave the way for the tech craze in the Iceland. Founded in 1997, the company is probably best known for its role as senior producer for EVE Online, a science-fiction game that has hundreds of thousands of online subscribers worldwide. Furthermore, CCP has been praised for its artistry, game design and unique player-driven, infinitely scalable storytelling narratives. The company is headquartered in Reykjavik, but has expanded to offices in Atlanta, Newcastle, and Shanghai and employs over 600 workers.
Clara is a Reykjavik based start-up that specializes in business and marketing intelligence. Clara produces community analytics tools that allow businesses to understand, monitor, and engage with their members on online platforms. Clara was recently sold to Jive Software of Silicon Valley for $9 million.
GreenQloud is a cloud solutions company offering green cloud computing virtual servers and data storage powered by renewable energy. This green company is a great example of the competitive advantage Icelandic start-ups can offer due to the abundance of geothermal energy produced domestically. GreenQloud has also benefited from government grants, as the Icelandic lawmakers have jumped behind this promising start-up.
Sustained Growth
While Iceland is a great test market for start-up businesses, most Icelandic companies must go abroad for any hope of sustainable financial success, which means tailoring their efforts towards an international crowd. Kjarninn's Hjalti Hardarsson agrees, stating that, I think the market size can be the biggest hurdle, so most Icelandic start-ups try to have some internationalization in their product. While sometimes the internationalization of a product simply means creating an easy-to-navigate site or app that offers a practical website site and application design. However, internationalization also means accommodating the language or traditions of an international crowd.
Icelandic is one of the hardest languages to learn in the world, and the overwhelming majority of potential customers will not speak the Icelander's native tongue. While most Icelander's do speak good English, finding the right developers to customize the apps to an international consumer is an important feature of sustained growth. Icelandic children learn English around ten years old in school and usually have some experience with the language through American or British pop-culture. However, speaking proper English as well as learning how to read and write grammatically correct is a different issue.
There are an estimated 500,000 people that speak Icelandic worldwide, and there are an estimated 1 billion people that speak English as a first or second language.
During my time living in Reykjavik, I have seen numerous Icelandic websites with limited English options or poor, unprofessional grammar. Regardless of my interest in the potential website or application, if I can't understand the text, I'm not going to engage with the business. Therefore, a key ingredient in the Icelandic start-up movement, must be their focus on English speaking customers. This is an important factor regarding the success of Meniga, QuizUp, Clara, and GreenQloud. There are an estimated 500,000 people that speak Icelandic worldwide, and there are an estimated 1 billion people that speak English as a first or second language.
The Icelandic Spirit
Starting a new business has an inherent risk that deters a significant portion of the population no matter what country you hail from. However, much like a dog backed into a corner, having the tenacity and will to overcome the obstacles in creating a successful business rewards those who take the chance on a good idea. Icelander's were metaphorically backed into a corner after the banking crisis and I think it was this environment of desperation that gave them the fight and inspiration to begin starting new businesses. Hardarson agrees, I think the financial collapse did change how many people valued their professional career. When you lose your job it forces you to reflect. Therefore, the spirit of innovation that resulted from the banking collapse will continue to inspire Icelanders to keep their entrepreneurial edge.
