The Lovable Effect in Sweden

In a talk panel with Antler, Harry Stebbings coined a new term: "The Lovable Effect." This is where European founders, particularly those aged 14 to 25, come to understand that building generational firms are achievable in Europe.

It was never unclear that such firms could be built in Sweden, and I won't bore you with the "Spotify, Klarna, iZettle" list, but it was the realisation that day-to-day builder have the capacity to build unicorns that changed this mindset.

Operating in Silicon Valhalla, "Jantelagen" becomes a slightly controversial trait. Some great founders and VCs support being openly confident and boast their successes; some great founders and VCs view such as a Messiah Complex and trust those who are more humble.

The truth is that Sweden has now entered a phase where many more startups will be created. Although Europe has the capacity to build models, Anton Osika and I both agree that it'll be products which will bring similar levels of success.

But what does it mean to have products and not models?

Earlier this week, I shared a post about how I leave my British flatmates shocked when I bring out a Swedish invention in the kitchen: coil whisks, cheese slicers and those plastic butter knives. Swedes know how to build quality products and we're frugal enough to make it cheap.

No, I'm not saying that Sweden's impression of the Lovable Effect will be China 2.0; Sweden will build products in tech which will function better than those in the US while also being cheaper, and while this is a generalisation, it's backed up with examples and logic.

Recently, I heard a recording of Charles Maddock speaking about Strawberry in comparison to the newer agentic AI browsers out there such as OpenAI's Atlas. Trying them out, Strawberry still remained the most intelligent product and ultimately the better agentic AI browser to use. It wasn't done as marketing, although some may disagree, but to show consumers an honest founder acknowledging his startup's market positioning and where to improve.

This honesty and realness that's found in Sweden, although sometimes found in other non-Nordic countries in Europe, is inherently unique. I'm certain that ego does not exist in founders, instead, it exists in their company. If a neurodivergent 16-year-old holds more relevant skills than an ex-Google employee, the ego is in the company so the 16-year-old is hired.

The Lovable Effect is real and present more than ever. What's different is that a spotlight has been put on Sweden and VCs are actively looking for exceptional founders. Before the Lovable Effect, it took being active in-person and on social media to get recognised. After the Lovable Effect, it takes one intriguing post on social media and you'll have a fika scheduled within 24 hours.

Who should you look out for?

I'll happily shine a light on only 1% of the thousands of founders out there with incredible potential, grit and determination. For the sake of representing the younger generation, they're all either under 20 or enrolled in a bachelor's programme: Elliot Norrevik, Melina Diamantoglou, Adrian De Gendt, Isaak Fabien Sundeman, Luke Simms, Jarik Foth, Jesper Hesselgren, Abood Alzeno.