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The Insider Interview with serial entrepreneur and investor Måns Flodberg

First of all, what is your investment philosophy when the stock market is shaky?
Try not to get too emotional. Only own stocks in companies you understand and feel comfortable in owning for a long time. Never invest money that you can’t lose or potentially need in the near future.
The invasion of Ukraine is terrible and I feel for the Ukrainian people as well as the young Russian soldiers that are forced or lured into this idiocy. However, the world will not go under and however cynical it might be, the stock market has a strong ability to always recover and move on.

 

In your opinion which unlisted Swedish tech companies are most interesting right now? 

Any company with loyal clients and high barriers of entry is interesting.

 

As an investor, is there any company you regret not investing in when you had the chance?
Scrive. We have used the product since 2014 and have been impressed with the ease of use and great user experience from day one.

 

If you could choose any unlisted tech company to invest in next through Tioex, which one would it be?
Quinyx would be fun! Another great company founded by a fellow Stockholm School of Economics-student.

 

Your company, Modular Finance, has recently launched a service for retrieving ownership data from the 100 most interesting unlisted companies in Sweden. Any insights you can share?

What these companies have in common is that they are usually big/mature enough for an exit regardless of IPO or trade sale to industrial or financial players.

I won’t give any specific examples but most people would be surprised at the amount of ownership changes in unlisted companies.

 

In 7 years Modular Finance has gone from 0 to 100 MSEK in ARR without raising any external capital. How come and how has this affected your decision-making?

We were extremely boot-strapped and are still very cost conscious. In my opinion most healthy SaaS-business should be able to finance its own future growth already in year 2 or 3.

 

In your opinion, what is the upside of raising external capital?
Most entrepreneurs take on a lot of risk investing their money and time, often without any salary in the beginning. Raising some external capital is a great risk reducer which enables you to feel a bit less stressed. Also it’s good to have an external party to get feedback from and having an external owner will get you up on your toes when it comes to reporting/structure etc.

 

What do you think other companies should think about when it comes to funding; pros and cons with raising external capital vs. growing profitably?
It depends on the business, in some cases just focusing on growth and land grabbing is the right way to go. In most cases however companies should focus more on profitable growth and not just growth. Keep track of that opex and keep it down!

 

If you have ideas or general questions you would like us to ask in the upcoming interviews let us know by sending suggestions to johan@tioex.se