Klarna Founder: From $0 to $46 Billion: Sebastian Siemiatkowski | E98

He'd had a discussion with me. We're. sleeping in the street dead scared. Like. be careful with who you're listening to. Have they really contributed to success? Have they really built success? Or have. they simply been in a company that was. successful? Afterwards, I've heard from. journalists that like a ton of emails. were coming from banks cuz they simply, you know, they're threatened by our. existence. And so the kind of articles. and and the writing about us shifted. from they're here to screw customers. over to do bad things. And that was. tough. I went home, I had dinner with my. wife and we talked about it and then I.

was like, "No, this time around I should. probably help him." Uh, I decided and I. tried to call him and he didn't answer. and I emailed didn't answer and morning. my mother called and said he was dead. [Music]. Sebastian Sheami Kovski. He's the CEO. and founder of Europe's most highly. valued fintech privately held company. His company is worth $45 billion.

Sebastian isn't a guy that comes from a. stable household or a silver spoon. It's. very much the opposite. The stories. you're going to hear about his home. life, his family, his father might just. bring you to tears because that's the. effect they had on me. He came from. incredibly, incredibly humble. beginnings. And he's built a company in. an industry where he was not qualified, where he didn't have technical. expertise, where he couldn't code. That. has completely revolutionized an.

industry. He is humble, he is honest, and he's willing to tell you the truth. And that's why it's such a pleasure to. sit here with him today and uncover what. it takes and who it took to build such a. revolutionary pioneering business. So. without further ado, I'm Steven Bartlett. and this is the diary of a CEO. I hope. nobody's listening, but if you are, then. please keep this to yourself. [Music].

Sebastian. Um, one of the things that. I've come to learn from speaking to a. wide array of guests on this podcast, from sports athletes to, you know, really successful CEOs, is is how often. our our childhood and our early years. shape our adult foundations. And. whenever I meet someone like you that's. achieved um really remarkable things in. any, you know, in whatever discipline. they're in, my first question always becomes um what. was it that made them remarkably unique. in their early years? what what was the.

experience the cauldron that shaped them. into who they are today? Right. It's. kind of funny you asked that because. like I don't necessarily feel that I was. remarkably unique in my early days. I um. a friend of mine uh their son turned out. to be blind. Uh but he has perfect. perfect pitch and he's now 8 years old. and he's sitting and playing the piano. and singing and um that is to me. remarkable like and I I was thinking. about that like that was me when I was a. kid. Uh look, I I mean my parents were.

from Poland. Uh they moved to Sweden uh. about a year before I was born. Um I was. born in the northern part of Sweden. Um. they were you know basically immigrants. because they didn't see a future in the. communist Poland. Uh at you know which was the case at. that point of time. and so um so you know they came to. Sweden but obviously as as it was back. then it was very hard to integrate into. Swedish society. you know, English. wasn't as profound as it is today and.

and there was, you know, a lot of. language barriers at that point of time. There was also like a lot of, I would. say, skepticism about people with Polish. name and Polish backgrounds. Was hard to. get a job if you had a foreign sounding. name. There was a lot of these biases. So, my parents struggled quite a lot to. integrate. My my mother was an early. retiree. uh and my father kind of jumped from job. to job, was unemployed for quite a long. period of time, drove a cab for multi-. years, did a lot of different things, right? And so I think that like I do.

think that there's something to the fact. that as an immigrant kid with parents. that still like intellectually had. academical backgrounds and, you know, had studied at universities and stuff. like that and never basically were able. to live up fully to their potential. I. do think that that kind of creates some. kind of like you feel like that's unfair. and you're going to like try to fix that. somehow. And. I was growing up among Swedish friends. who just had better economical. standards than we had and I was.

obviously longing for what they had. Um, you know, I remember that in with my mom. like there were weeks when, you know, we. were eating pancakes every day and I. thought that was great, but now I. realize it was because there was nothing. left. That was the only thing we had like. flour and and milk and so forth. So like. so I think that like uh I I do think. that that kind of setting and there's. obviously some research that suggests. that in Silicon Valley more than 50% of. the companies are you know started by. immigrant backgrounds. I do think that.

that kind of setting of you know having. a lot of the intellectual capacity and. and all these things and then the kind. of prerequisites potentially to do. something different and at the same. point of time this kind of drive of like. you kind of almost feel like it's unfair. life isn't necessarily fair but like you. feel like this is not fair we should. have like been able to have something. different than this and and maybe also. to some degree you I don't know to what. degree that's on an emotional level I. don't think on a rational level but an. emotional level also like your parents. really sacrificed their lives like I.

Because it's hard for people that are. not have are not immigrants to. understand the consequences of not. having the friends from school, not. having the you know the understanding of. how society works, which school is. better, which is worse, how do you. interact with government, you know, how. does the system works, all these things. like that that total lack of. understanding of a specific society that. it means to shift like my parents did in. their, you know, uh late 20s, early 30s. uh and how difficult that means for your.

own ability to kind of you know do. something with your life. I think that's. something that's underestimated. So you. have the kind of emotional thing that. you want to you know you feel that they. did a massive sacrifice in some due. regards for for your behalf, right? Yeah. And that feels like a tremendous. privilege. I. Yeah. I wanted to ask you um cuz I I can. relate a lot to that. I'm an immigrant. myself. Came born in, you know, Africa. in Botswana and my parents came over. here. My mom can't read or write. Fantastic country by the way. Yeah. Yeah. Beautiful place. Um, but I. moved to the southwest of the UK where I.

was in an all-white school of 1,500. white kids and it was was me and I and. we were also like. the poorest people in a middle class. area. So you have I felt different all the. time. Yeah. And um did you feel that way? Absolutely. Very much so. I mean, um, even the fact that we were Catholics. Now, I'm not a very religious person. today necessarily, but we were Catholics. and my, you know, my parents, we went to. to, uh, to church every Sunday and stuff. like that. In a very non-religious. society like Sweden, that was in itself.

very odd. Uh, and I remember people like. saying, you know, Jesus wasn't, you. know, the son of God and stuff like. that, which at that point of time, now. today, I wouldn't necessarily, but. coming to that, at that point of time, it was like, you know, somebody was. like, you know, saying things like that. And then also the Poli like the view of. Poland at Proan was that there was this. country behind the Iron Curtain that was. spewing out you know uh toxic waste into. the Baltic. And so there was a lot of. like you know Polish and jokes about. Polish people and stuff like that. So I. mean all of this like I took heart. I.

wouldn't say I was bullied. That would. be in my opinion taken too far because. people I know people have been bullied. for real and I I don't think I was. But. there was like that you know the sense. of being different of not necessarily um. you know both not having the same. prerequisites but also getting some like. quite a lot like sometimes getting quite. hard time over these things. Right. And when you were a kid because because. I know I did I developed a very naive. thesis as to how I would escape this. scenario. What was that? Money. and success because it was the pain in.

my household the lack of. So I thought. well that will fix it. Did you develop. your own thesis of how to. No. I think yes. very similar to yours, right? Because also what happened in my. my in my life was that my parents. divorced when I was about 8 years old, right? Um and so and they had a lot of. conflicts, right, on different topics. and and I think to your point like as a. child an interpretation of the reason. for that conflicts was the lack of money. like because that was what they were. talking about all the time. You were. hearing that. Now, I do today probably. have a slightly different view of.

whether that was the only explanation. for their inability to, you know, to be. a couple and and and be together. But, but at that point of time, I agree with. you. That was like one of my. interpretations was like, yes, it would. be nice to um to have, you know, monetary success in life and that would. solve some of these problems. For sure. For sure. I do agree with that. But but. I also in at least in in my life there. was in addition to that something else. which I cannot really explain which was. that I was always I was always intrigued. and like thought it was interesting to.

kind of do business like I it's very. nerdy and I I can't explain it like I. remember reading like Richard Branson's. book when I was like 13 years old like. and I think it was like super. interesting or the founder of IKEA Ingva. Camprad who was a big big thing in. Sweden obviously because it's a Swedish. guy. So like I remember reading up on. these stories and I also remember like. trying to start businesses very early. So I had like I did a lot of different. things in like trying to start it was. everything from like gathering some of. my friends and we would go to the. apartments where we were living the kind. of the the story buildings. There was.

this bus stop where all the people were. coming and we would go there and like. offer us to carry you know groceries and. stuff like that return from like all. that kind of stuff like just finding. different ways of like you know trying. to do things. So is there there's. something really intriguing about that. in my mind because um as as you've. highlighted immigrants tend to be more. entrepreneurial generally um and in the. situation you brought up in and I. reflect on my own situation because of. the circumstance I had made this. connection that if I was to have. anything or become anything it would be. a direct consequence of my own actions.

and then I think maybe entrepreneurship. appealed to me because it was I knew I. wasn't going to do great in the. conventional route but then this bit it. was this really nice route to. potentially huge success. Um um and it was all kind of centered on. what I did. It was going to be me. M and I think you. know from hearing about the scenario you. were in with your parents and your. upbringing and being an immigrant. entrepreneurship uh was something that. maybe you could control if. No, but I think you I think you're right.

in the sense that like I think. definitely in that environment growing. up in that setting you know that like. there's nobody who's going to help you. like there's nothing you're not going to. get anything from anyone right it's just. going to be either you do it or it. doesn't happen those are the two options. like it doesn't happen or you do it. yourself like those are the options. I think if I look at my own kids there's. a lot of things that happens in their. lives that fit into a third category, it. happens because dad and mom helped out. and you know whatever. There's a lot of. other things that happen. Uh but here it. was like you know if I want to have an. adventure, if I want to go and see the.

other part of the city, I bike there. I. have to go there myself. Nobody's going. to drive me like you know this like and. I do think that there's some some lack. of like healthiness to that as well, right? Whereas like it it it kind of. educates you and I haven't thought about. it but now as you're saying it actually. kind of thought about it that it does. help you. But I would also say on the. immigrant side what you said like they. are more commonly among um. entrepreneurs. But I also think that. like when I look at like you know when. we have problems in neighborhoods with a. lot of immigrants and so forth I think. that to me it's almost like I wish that.

society would realize that like there's. going to be a lot of frustration a lot. of people with like you know energy. They want something different. They want. something a change. They don't want. things to be the way they are. That's. kind of where you're coming from. And. then it's just society's ability to try. to showcase that that energy can be used. to become Slath and Ibrahimovic. It can. be used to become, you know, a music. artist. It can be used to become an. entrepreneur. It that energy or if we. fail to offer those opportunities or.

showcase that those alternatives, they. may come out as burning cars and doing. other things that are less less, you. know, less productive, right? So I think. it's the really that you know to me. today I would just like wish that. society would really see it as like how. do we help showcase and show that there. are these great options for that like. buildup energy of wanting something to. be different right. and for that you need sort of great. empathy and to understand that people. are different shapes and sizes and that. kind of brings me nicely to the the.

education system and your your personal. experience with the education system and. do you think it it did you served you. well or did it fail you? Well, I think. it did. One thing that to your point. which you were describing as well in. your own history is that I I one thing. that I do worry for today compared to me. was that I was in a school with mixed I. would still say 70 80% were Swedish 20%. at that point of time were had different. immigrant backgrounds. If they would. been only immigrants in that I would not. have anything to compare to. Right? So I.

do think that the school system at that. point of time was less segregated than. it is currently at least in Sweden. I'm. not that familiar with the UK current. situation but I think that was that was. a case so in that case now were the. teachers that amazing and like you know. like you know there was a mix like some. were good some were bad right um so and. I remember like you know I I was one of. the kids who had very easy at school I. learned to read quickly and and so forth. right and I believe to some degree then. I became slightly bored because at the.

Swedish school system at that point of. time was very much set up as like. everyone equals So if you were like. ahead in math or in head in reading or. whatever I I I literally still remember. from like you know second grade which is. 8 years old in Sweden when you're 8. years old you know um we were having. like reading which meant that everyone. was reading from a book and like some. kids unfortunately for them like they. were still struggling really right and I. had already read the whole book so I was. quite bored sitting there listening to. the story that I had already read and.

then I started disturbing the lesson. because that was kind of so I became I. became person that was quite problematic. for the teacher because I was just like. I was so underststimulated and that I. think is a little bit sad that I hope. that like schooling has become better in. like you know actually you know. understanding that all pupils are. different and need different support and. you know can get a different challenge. because you all need to have like a. continuous challenge right. and those that lesson there you learned. about that need for challenge. you're now the headmaster of a. great. school that has thousands and thousands. of employees in it.

Yeah. And that that point about making. sure that the people that attend your. institution are also challenged must. must uh still sort of be important to. you, right? Absolutely. I think it's like actually. you know and in a way especially in. Swedish society which I you know the. Swedish culture is very much just saying. that alasad which means that everyone. should join like everyone should be part. of this and and that's a fantastic. ambition and vision for a society that.

like no no man left behind is kind of a. different translation of it or or no. women left behind. Um but and and for a. while that was that was creating a. conflict because. Clana as a company we have very high. aspirations. We want to do something. very different. We want to you know. really as I say sometimes play in. Champions League and then you know the. problem is that's not true for everyone. in the work world. some people are fine. with playing kids league and and and so.

forth, right? So, so it took us some. time to dare to say that CLA is not for. everyone, that Cla is actually a company. that wants to attract um people that. want to make a real impact, make a real. difference, that want to learn, that. want to be challenged. And that took. some time, and it might sound odd, but. for us, at least in in the Swedish. culture context, it took some time to. get to that where we started saying, you. know what, Cla isn't for everyone. Not. everyone is going to enjoy this. environment because not everyone is will.

like a lot of people would say it's. amazing to climb Mount Everest. Did you. climb Mount Everest? They're fantastic. That's one thing but it's a very. different thing that like how many. people are really willing to like freeze. their fingers off train for four years. like all the things that you need to do. to climb that mountain then like the. number of people that like check the box. and say I want to do that becomes. massively smaller right and so I think. the same applies for companies like a. lot of people would say I want to I want. to work for a successful growth company. doing things that's really cool. like climbing my nervous but then the.

question is like are you willing to do. all these things like that that that. that means that you need to do in order. to be able to accomplish that, right? And and um so so yeah, to your point. like I think the challenge today I. always tell that people like when they. you know when I interview them or just. like just be like be aware like this is. you're going to be very challenged here. This is not going to be a place where. like it's just going to go easy. You're. going to have you're going to be very. very challenged here. What's the perfect. balance of challenge between being too. challenged that they, you know, they end.

up in burnt out or something or. underchallenged that they lose. motivation like you did as a kid? It's super difficult, right? And I think. that's why it has to it has to be about. encouraging them uh and and and seeing. like each individual by individual where. they are, right? Think about a great. personal trainer, right? when you go to. the gym um you know how do they find the. balance of you know how how much to push. you and when to kind of hold off a. little bit let you you know breathe and. so forth right actually I you know it's.

kind of interesting because um my kids. have this swim teacher her name is Petra. and and I I can sometimes just sit and. watch her in when she's training my kids. swimming because she has that perfect. balance I've never seen a teacher that. finds that perfect balance as well as. she does. So, she pushes my kids exactly. to the point where they're are like dead. scared, like almost like they're almost. there where they're like going to want. to they want to give up and get out of. the out of that, but they're doing it.

and then they're proud of what they. accomplished and and that to me to your. point like that's almost like a piece of. magic that a teacher has. Like the best. teachers can spot that in their pupils. can spot that and really find that. perfect balance, right? But it's very. difficult and it's obviously difficult. in a company with 4,000 people like how. do you try to put mechanism in place to. ensure that you that you find that. balance right and that that that you. really uh allow people to get to that. perfect spot u where they develop. heavily but at the same point of time.

doesn't move you know ahead and just. bang their heads to the wall and and. feel give up or you know. to your to your point then as well about. um it took you a long amount of time to. realize that you wanted to just say to. the world and to anyone that was. considering joining your company. We're. not for everyone. Um the pandemic happened and what I saw. was um leaders were kind of forced in. this wave of virtue signaling to say. everyone can work from home forever. If. you didn't say that now you're a bit of. an [ __ ] company. and as as I reflect on that and as it as.

it went through I started to reject that. narrative because I think that the. culture of the company should be. determined by the mission. And um also. the other thing was I actually think. that companies as you said should have. really clear communication at all stages. about who we are, how we work and what. our culture is. And allowing it to be. kind of you decide. I actually think is it's it's for me. super weak as leadership. But I also. think it will have an adverse effect on. the ability for the company to to. achieve its mission but also the company. culture. People knowing like what's.

expected of them. But now it seems to. have become really like ac politically. acceptable to just say our employees. will do whatever they want. How do you feel about all of that? It's a very complex topic. but but I think look I think that the. look I give you an example right is that. um previously which you might found odd. clana was not really uh following kind. of agile work tactics. Um and then a few. years into um cloners development, we.

realized that some aspects of agile like. daily standups, weekly retros, working. as small teams on specific topics, there. were some aspects of these that are very. productive and really hope help. productivity help achieve our goals and. so forth. Um so then what we did is we. said like okay now all teams within CLA. should do daily standups should do. weekly retros and I think currently when. we look at it uh our data about 50% of.

teams are following this right so then. the question is like how do you then. approach that because you feel yourself. very convinced that for example the idea. of daily standups is helping to be. productive um but if you enforce that if. you simply go and say everyone has to do. this period like check the box the. problem is like you can do daily. stand-ups in very productive ways where. you're engaged the whole team is engaged. you're discussing what can we do how can. we move faster etc etc or you can do.

daily standups only to check the boxes. like there are different ways and and. that applies to almost all such rules. and concepts within companies so I think. that like what I'm still I still I don't. feel that I entirely figured this out. but But there's a balance in an. organization around like when are we. prescriptive and mandate mandating. things and when are we suggesting and. highlighting because in the end the. reason I believe in daily styles so much. is because of my own experience of that.

but there was also something that I see. up myself. There was a a willingness to. I I was interested in trying to find out. better ways to working. I learned about. this. I saw it in practice being done in. a good way and then I my conclusion was. that this was that. So if you think. about my learning process, my personal. learning process in that situation, it. was driven by my interest, my passion. and then I accomplished. That's a very. different thing to if my board suddenly. would have dialed me up one day and said. everyone has to do daily standups period. because it didn't it would not have. given me the opportunity to learn and.

and and reflect on it. That's when I so. a lot when I think about learning within. an organization I think about like the. karate masters and the Japanese and kind. of like remember all this like karate. kid and everything like how they learn. in those environments. It is like. obviously at the beginning there has to. be an interest by the individual self to. try to learn but then the master doesn't. always tell you like exactly what to do. They like they provoke you to try to. learn yourselves, right? There's a. excellent example from the Toyota way on.

that topic where like some of the like. masters of Toyota way within Toyota. would like take a lot of their senior. managers and they would draw a circle on. the factory floor within a Toyota. factory and then the the managers would. have to stand there and observe uh the. manufacturing of the cars and then by. the end of the day you know the totally. silent teacher would come and say okay. so tell me what have you observed and. then the the senior managers within the. circle have been standing there the. whole day had to say well we saw this we. saw that and then the he would look at.

them the senior you know senior kind of. shenzen like senior he would be like no. another day you know so they have to do. another day so like and I like provoke. them because I think that's the you and. and it's very learning is such a. difficult thing right because you don't. as much as we we we think that learning. is sitting in a room and listening to. somebody um that is you know a very. inefficient way of learning we learn by. doing uh by doing things ourselves right. uh that's really u that's the truth and. I think that co is such a good example.

of that because we had a lot of. experiences that we've never had before. and they taught us a lot about our life. our priorities a lot of people talk. about that today because we were forced. to do things differently not because we. read about co and we read about you know. how things can be different because. suddenly we had to experience it and. when you experience that's when you. truly that can impact your behaviors can. change your ways so the the kind of it's. a very difficult balance in these. companies consistently from a culture. perspective like how do I how do I. encourage encourage and kind of push. people to go and find out like you know.

try to experience that and learn for it. but but not trying to enforce it too. much and and that's a balance game right. you cannot be entirely without rules to. your point because like if you join a. soccer team like there are some rules. like you come in to exercise every. morning if you just don't come to. exercise when like okay look uh you know. maybe you have a different philosophy. about how you're going to become a great. soccer player but like I just don't. believe in your flu like like it's not. going to work so like if you want to go. and believe that you never have to. exercise to become a great soccer player. Hey, you do that but you can't do it on. it. Like right. So there is obviously.

some selection criteria where you have. to decide within our ecosystem within. our company these are the rules that. will apply and because we just feel that. they're so fundamental and so important. but once you be on that level then it's. more like how do I intrigue you? How do. I challenge you to develop that insight. for yourself. so that you really come to embrace those. ways of working and really make them. your own and really expedite them. I. think and I haven't solved all of this. to be very you know honest I think we.

have lots to learn still with cla but I. think that that just uh is a very. interesting int sorry it was a long. answer. no it's amazing it's really really. thoughtprovoking and I was I was. thinking yeah I don't think a lot of. people would have given that answer but. I I feel it's the the right one for so. many reasons especially as it relates to. the process of learning I think the. things that I was most successful at in. all facets of my life were things that. started with with interest and the. things that I had an allergic reaction. to in terms of topics in school. were the things that there wasn't. fundamental curiosity. So I was kicked. out of school. but in if you look at business and.

psychology. like I was I would have gone to more. lessons I was 30% attendance in these. other subject and that's and that's so. true. So it's um it it provides a. different way to I think. and I would say one more thing on your. specific like work from home thing which. is also another thing to take into. consideration is that what ends up. happening and this is not a problem when. you're 10 20 people in the startup but. when you start becoming 4,000 people. the what what ends up happening is you. have obviously um unfortunately that's. the only way to describe it layers of. management and then you have the people. actually doing it and that's just how. most organizations are are structured.

But what ends up happening is okay how. are we going to do with this work from. home? what are the rules that going to. be set and there is a tendency for. people to go and say management team the. top people have to tell us what the. rules are and if you write those rules. the problem is like look at clana we're. active in like 40 offices across you. know 20 countries. each one which will be in a different. phase of covid or not and stuff like. that right so try to write a rule that. is applicable for each team and then. you're going to have individuals maybe.

some individuals have immune diseases. and are extremely worry about you know. moving into that environment are more. careful than others. Maybe you're going. to have like you know some people that. have religious concerns somehow tied to. this. You know you're going to have a. flora because you have so many people. you have so many different individuals. with different perspectives. So what you. then sometimes need to do in my opinion. is you need to say look you will decide. for yourselves and what then ends up. happening is the uh in my opinion what. happens is that the people actually. doing the work they usually find that.

quite attractive that they can take that. decision. So the managers of those. people they may find it's more difficult. because to them it's nicer that the top. management team has written a policy and. they can say like this is the rules but. why why these rules because it was said. so right and so then they can hide. behind that right and if you don't allow. them to hide behind that they will. actually have to motivate why are we. going to do like this we've decided in. this team that we're going to work in. office so we're going to do this and. that forces them to do that which is.

good for them they need to do that they. need to promote about that. But there's. always a risk when you write too strict. rules on the top is that they're being. used and then there's just management. said so and that is just so bad for the. culture and everything. You want to. provoke an environment where people feel. like. the rules are there they were well. intent they had a good purpose but they. also need to be challenged if if they on. a specific individual and a specific. situation do not apply. There needs to. be a mechanism where those rules comes. back and say let's what if we were in. this and in the end rules can never be. an excuse for not thinking for yourself,

right? That that never happens and they. always have to be there's going to be. exceptions in a large company. There has. to be exceptions because those are. healthy signs of the fact that people. are thinking for themselves and judging. by themselves and not just hiding behind. the rules. I always reflect on the um. that that made me reflect then on the. example of the someone told me certain. country I think it might be Germany. where pilots were having a huge amount. of crashes. and it was because the the culture was. you don't challenge the pilot. So even. when the co-pilot knew there was. I think it was South Korea.

Was it South Korea? Yeah. Yeah, I think. it was. Yeah. The planes were crashing. but because the co-pilot didn't feel he. could challenge. and I think that's sort of analogous to. what you were saying there. I talk about hu a lot in this podcast. because of the transformative impact. it's had on my life. Um, but there is. such thing as the hule bug. And the. reason I started my hule journey and. became a huligan as they call it was. because of a guy called Mike in my. office back at social chain who would. evangelize about it all the time. And. then once I tried it one day and I saw. the impact it had on me, I became the. same type of evangelist. And even here.

at the diary of a CEO studios, we have. now three people that are stood. currently in this room with me that have. caught the hu bug. Dominic Murray, Jack. Sylvester, and my assistant Sophie. Chapman. They're all now working out and. they're all addicted. I I think addicted. is a strong word. Um they're all heavily. reliant on hu to plug that gap in their. diet and their lifestyle that um a busy. lifestyle and uh convenience food. options sometimes create. So I want as.

many people listening to this to try. Hule. And if you catch the Hule bug, then I genuinely believe it will change. your life. I I have to go back and and. and hear about the start of of CLA. because you know one of the things that. really intrigued me and made me feel a. lot of respect towards you was that. you're not technical as a co-founder. Unfortunately, no. Built this mega tech company but you're. not technical and I know I tried when I. was 18 that was my first failure. Um but. I found that really just horrifying and. respectful. Yeah. So tell me so how did it start and um.

and and where did you find the courage? Sure. No. So, look, as I said. previously, like it's kind of ironic. I. always had tons of business ideas. And I. even remember like when I uh when I was. like probably 13 or something. Uh in. Sweden was the first time we had private. radios, private radio stations. And I. thought the one in my home city of GPS. sucked. So, I kind of wrote the business. plan for them how they should change the. shows and the internet and actually. called them and tried to convince them. to change. 13. Yeah. 13. Like I can imagine they were. like laughing their guts. Like this 13. years old is calling us like you should.

do this programming instead. you should. have a show about this. And. I bet they gutted now. I bet they have. Exactly. So, for whatever reason, I. always had this like in inclination to. wanting to do something. And then um I. did two years at Stocken School of. Economics, which is one of the like top. schools uh in Sweden around if you're, you know, want to study at an economical. direction. Everyone at that point, this. is 2000, everyone wanted to work at. Goldman Sachs, Morgan Stanley, Mckenzie. That was really the the vibe. It's. actually interesting because they had. this survey where they said like at that. point of time when they asked students.

7% wanted to start their own company. Today it's 70%. So it just gives you. like how much of a shift there's been. during that period of time. But anyways. and then in 2002 because I went directly. from college to university. I was like. okay I just got to do something else. I. mean every all my friends had like. backpacked and stuff like that. So um. ended up me and actually what became my. co-founder Nicholas. We went backpacking. which at that time because we always. wanted to do something that was a little. bit different. Uh we ended up going. around the world without flying. Uh. which was a lot of fun. So if you want.

to go to YouTube, you'll find the videos. when we were like from the. YouTuber. Yeah. Because we had this idea that we. were this was just at the beginning of. all these like you know big brother and. all these like you know do documentaries. and stuff. So so we thought we were. going to like we we recorded the whole. thing and we did we thought we were. going to like air this as a TV show. That's very funny. I need to ask you one question about. that. How did you get to Australia. without flying? Um, yeah. So, you had to u we took a a. cargo ship from Singapore to Brisbane. Ah, okay. And then we had a cargo ship from Sydney.

over New Zealand up to Mexico. So, that's how we and then we actually took. the QE to Q Elizabeth second uh between. New York and um and Southampton. So, so. that was kind of how we did that that. those were the expensive parts of the. trip. I mean, we we did it on an. extremely low budget. I think on average. we spent like $10 a day. Like we spent, you know, we're sleeping in the streets. I actually slept on Piccadilla Circus on. the street uh when we were in London. that night and uh while we're passing. through London and then I went we went. to hide park when when the sun had risen. and and slept because you don't sleep.

really well in Pika Circus at 4:00 a.m. I tell you. So like you can imagine how you know the. vibe there at that point of time. Um but. anyways so we came back and then I. missed to start my semester and so. instead I was like on the second. sbatical year that I hadn't expected and. it was 2003 and I was looking for a job. in my home city of Upsala and I couldn't. get a job. I was actually on welfare for. a time because I just couldn't get any. it was a low economy was very hard. Eventually ended up working at this.

account receivables factoring firm which. was like the last place in the world I. ever thought as a sales guy. Yeah. and and I was like okay but now. I'm here I'm gonna do the most out of. this right so I started calling and. trying to sell these services and then I. it was very difficult to sell such. services to companies because they're. all like yeah you can save me £400 a. year but I don't really care because we. work with this other company for 15. years and they're great and whatever but. then I started talking to entrepreneurs. and these entrepreneurs were starting. small e-commerce companies because some. of them had figured out at that point of. time you could buy Google AdWords super. cheap because no one was buying them and.

then you can get some traffic and you. can sell some stuff and like it was like. it was all kinds of stuff right so we. started talking Um, and they were really. keen like, "Oh, I can save £400 a month. a year. That's awesome. I'm going to. work with you guys." So then I started. like thinking about payment services and. I was asking them, "What are your. problems? What are the things that you. would like to be solved?" So that was. kind of where the idea came from. But. then a year had passed and I want to go. back to school. So I came back to the. stock school of economics to start my. third year. I left my job and um but. there was an incubator at the school and. it was very early at this point of time.

Now everyone has an incubator but time. it wasn't that common. So I went to the. CEO of the incubator and I said, "Hey, you know, I have this idea. It's kind of. payments offering buy now pay later. services. It would look like this and. you know, whatever." And she was like, "This is awesome. You have to do this.". And when she said so, I was a little bit. like now I can't just like give up on. this, you know. So, so I was kind of. looking around and then I stumbled into. one old friend of mine, Victor, uh, who. I knew a little bit and he was like. because I was sitting in the cafeteria. of the school and I was telling some.

friends like, "I want to do this. company. I was going to do this." And. everyone was like, "Yeah, good luck to. you, man.". Kind of like patronizing. Is it. patronizing and like kind of like fake. support? You do that and I'm going to go to. Morgan Stanley and make all my like. that's like that that was like kind of. the the the perception. So So that's. kind But Victor then was the only one. who was like, "Wow, that's awesome. I'm. with you if you do it, right?" So I was. like, "Okay, that's cool. Let's do it. together." We didn't know each other. that well. And I had Nicholas who was an. old friend of mine who I did the trip. around the world with. So So we kind of. joined forces. But then but it was still. like a huge decision to us like starting. a company at that point of time felt. like wow crazy. Are we giving up on.

careers? What's going to happen? You. know, so it was only when we came to the. conclusion we're like, okay, you know. what? Let's not think about this as a. lifelong decision. Let's think about. this as a six-month decision. I often. tell this to people today. Like we said. like we're going to do this for 6. months, but if we do it for 6 months, we're going to do like all of our. energy, all of our time is going to be. this for the next six months. So we even. had like a rule. We had to eat breakfast. in the office. We had to be there. We. were counting the hours who everyone. else was there. So it's fair. So we were.

like we were living in the office for. the first 6 months and we were just like. focused on that and nothing else and and. but it was when we decided it was going. to be a 6 months and then we're going to. evaluate then we kind of was easier to. take a decision because you're like yeah. six months whatever that's fine right um. so so we got off uh and then what we did. we realized that we couldn't code to. your point right we couldn't code we. needed a system right so we're like how. are we going to solve that so are we. going to raise money try to pay some. engineers and hire them what are we. going to do and eventually we ended up.

the the incubator we're in, they had. this um like Christmas drinks thing uh. where they invited some business angels. and they invited the companies that were. in the incubator to pitch. And so. Nicholas, my co-founder, did like a 30. secondond pitch. And after that, a woman. called Yane Valerude uh kind of. approached us and and and she was like, you know, she almost like pushed me up. to a corner. She's like, "This is. awesome. Tell me what you're going to. do." She was like, she just heard that. pitch and she was like, "I like this. business idea." And she told us, "Look, I have these engineers and they're like. the best engineers. They're amazing.".

Cuz she had actually done one of the few. really successful exits during. era where they had sold a company for. 150 million pounds. Um, and so she had. money from that and she had the. engineering team from that. So she said, "I'm going to connect you with those. guys." And so we sat down with those. engineering guys and they were much more. senior than us than were like in their. 40s and you know we were 20s and and. there unfortunately a misunderstanding. arose right where our understanding was. that these five engineers or four.

engineers they really were they were. going to join us full-time and work on. this and continue developing the company. with us. Right? Their understanding was. they were going to give us some source. code some code and a system that works. and then they're off and doing something. else. And so, uh, but you know, as it. is, and I now try to tell other founders. this today, like if you found friends. and you want to start a company. together, don't only talk about all the. amazing stuff you're going to do and. everything you're going to accomplish. Also sit down and ask like, how many.

hours per week are you going to spend on. this versus because you love exercising. and you love, you know, hanging out with. your friends and so forth. Just so like. not that, you know, you can do it on 30. hours a week or you could do it on 80, but just so you're aligned. There can't. be two big misalignments. It can be one. person doing 30, another one doing 80. Make it super concrete exactly what. expectations you have on each other. because otherwise there's just such a. big risk of like misalignment and. conflict. Resentment comes quickly, doesn't it? Right. So then what we did so we we. brought those engineers on board and. they started coding and they were.

excellent. They were amazing engineers. So they started coding the system in. December. In in April, four months later. we launched with the first customer. So. it's four months and they put together a. lot of the fundamentals that actually. still you know today are part of what. clon offers as a service. So they were. super but then you know after that they. were like good luck guys see you later. and we were like no no no that's not. what we agreed and then we looked into. the contract and we had given off 37% of. the company to them for the technology.

Uh and then we had given 10% to Jane uh. as the business agent but she gave us. £60,000. Right. Mhm. And so um and then so each one of us. then had equal so we had 17% each um and. so that was kind of the setup after that. and then we had basically given away now. all these percentages to these engineers. and they just left us and so that became. a quite tough conflict obviously but. legally speaking they had followed the. contract so there was nothing for us to. go into contracts and say you know.

whatever because the contract was we. just we we just hadn't talked about this. and we were under different assumptions. of what they meant. the contract was. just there. Like we didn't think about, you know, this consequence. So, they. ended up leaving us. And it was kind of. funny because in that room at one point. of time, uh, in the boardroom, one. person said, "Well, you know what? Just. so you know, Sebastian, you have to calm. down on this topic. Cla is never going. to be the size of a company where it's. going to need four great engineers like. this.". Christ, that's kind of funny. I almost laugh. It's kind of funny now as I think back.

about it. Did you ever resolve that? Sorry. Did you ever buy buy them buy it. buy them out or. No. So what ended up happening is to. some degree I think just because they. didn't understand the potential of what. they had built together with us they. also sold much too early. So as a. consequence I mean they sold at a very. early day where maybe the company was. $10 million worth or something. Oh god that's awful. Yeah. So so I mean well it's not awful. in a sense because to me it feels a bit. fair because they got the upside of what. they did. If they would have. participated longer and so forth they. would have seen a very different upside. and they would have built the company.

with us. But you know, but this was a. challenge for us as a consequence to. your point because at least what it. allowed us to do is very quickly get a. system live and get something going. But. then as they left, I needed to figure. out, okay, I need to hire engineers and. I have no clue how to code and how do I. evaluate a good engineer from a bad. engineer? I have no clue. You're like, architecture, what is that? You know, like there was like zero knowledge, right? you and that is one of the. biggest challenge I think for a lot of. people like managing people that do the. same thing that you know yourself is one.

thing. Trying to manage somebody that. does something that you have no clue how. to do is very very difficult. How did you I was in the same place. I. was I knew needed to build a website not. technical went on Google just started. looking at their own website and using. that as yeah this this is cool this. animation looks good I will hire them to. build you know. So how did you solve. that problem of not knowing what good. looks like? Well, first and foremost, I. think unfortunately um you know in what. ended up happening in our situation was. that um one of the guys from this.

engineering team stayed on because they. were still shareholders for a period of. time, right? So he stayed on as an. adviser and we started hiring some. engineers and some of which were better, some which were worse, some you know as. you will always have a mix and we also. got a CTO eventually who came in um and. the C he he as a CTO was an amazing. programming and developer but he wasn't. necessarily the CTO that would you know. hire the right talent build it he wasn't. businessoriented he was very much like.

technically interested and wanted to. build like really beautiful code bases. and stuff like that which you know some. engineers tend to have more that. tendencies. and what was a frustration to me is that. for a long period of time and this was a. challenge in Sweden and stock at that. point of time the advisors that we had. around us. uh none of them had built a $45 billion. company like we are in today none of. them had that experience but they were. senior in our opinion compared to myself.

they had done great corporate big jobs. We had like, you know, advisers and. board members that had corporate. backgrounds and been in big institutions. and and so forth. And so they were. giving us a lot of advice on topics. like, is this the system that you're. building? Is this fast enough? Should. you be able to build it faster or slower. like the progress and things? And so. when they were giving us that advice, it. was bad advice. But we were too young. and too inexperienced to be able to. recognize that. And so unfortunately, it. took us some time and it created a lot. of frustration because I was always.

sitting there. like does does it really. need to take this long time to build. something like and is it really unfair. of me to expect that the engineers are. like a little bit interested in the. product they're building as well and the. business side of it or are they only. always going to be interested in the. coding itself and the technical. challenge like uh shouldn't I be able to. engage with them on the product side as. well like and a lot of times we were. like they were like oh we want to build. this product you need to give us more. clear specifications and I was like but. if I write those specifications what's.

left to do like That's part of the. creative process to sit together and. create these. So, you know, you get. stuck in a lot of these things and then. and then eventually I remember I was. very frustrated because at one day when. Seoia invested and that was why Sequoia. was so important to us because in 2009. we got Sequoa to invest in the company. Michael Morris joined our board and one. of the ambitions we had with that was to. get get a some kind of contact point to. somebody that had actually seen large. tech companies grow had seen real. success of a tech company and start.

understanding their mindset. And at that. point of time I unfortunately concluded. that like it was not going to work with. our CTO because he didn't have that. right mindset for it and he was. interested in something very different. He's a great guy in many ways, but he. wasn't the person that would be able to. allow us to build our engineering. organization and and bring us to become. a true tech company and be really. technologydriven. And and I remember going into the board. eventually and saying like and and at. that point of time uh the representative. of the engineers that build the original. system who was on my board, he had been.

telling me all over and over again like. I was like I'm a little bit worried. Should it really be this slow? And he. was like, yeah, you know, it's. different. It's this and that. And then. eventually I came to him one day and. said, look, now I've taken a decision. unfortunately I have to change CTO and. he was like good decision and I was like. I almost wanted to smack him in the face. I was like for four years you were. telling me that this is okay and now you. I'm doing this change and you're saying. good decision like that's not like you. shouldn't say you're wrong that would be. respecting him more right so there was. in that setting we were coming up for.

there was a it really nowadays I. appreciate much more like how I have to. really look through a person ask myself. is this a believable person is this. somebody I should really take advice. from and I think a lot of entrepreneurs. ers that will listen to this and startup. people like be careful with who you're. listening to. Have they really. contributed to success? Have they really. built success or have they simply been. in a company that was successful? Like. those are very different different. aspects, right? So being very careful. about who you get advice from. So but. that's kind of how we solve it. So it. was just like we had to learn and test.

And then the last piece of very. practical advice that we did which was. one of the best things I ever did was. because I was so mixed up like. engineering whatever what does it mean? And then I said to my CTO a very. practical thing. And I was like, "Hey, can you show me how you fix a bug?" And. so we sat down together by his screen. and he basically took one bug that we. had and he started searching in the code. and then he wrote you know the fix and. then he wrote a test case for the fix. and just sitting and watching him do.

that made a huge difference for my. understanding of like you know how long. to so I think as much as sometimes you. may feel like very whatever you're. managing that you don't understand you. may feel like oh my god so difficult and. they're talking about all these. technical terms and so forth sit down. next to. spend half a day, spend a day, just look. at when they're doing it, a designer or. whatever it is, something that you don't. know how to do yourself, just sit next. to them, see them do it, and that. already will at least put you at a. different level of understanding of, you.

know, the job and so forth. So, there. are practical ways in which you can try. to gap that, you know, bridge that gap. So important because again, you comes. back to communication and I had the. exact same thing and uh I think in my. first tech business, I wish I'd done. exactly that. I wish I'd taken the time. to go and um build empathy towards the. the role of my my CTO and um understand. what his job was and I guess how I could. make it easier but also to I really also. should have had a objective outsider. come in and do an assessment on how he.

was working, how I was working and. everything in between. I think. entrepreneurs don't do that. They they. they they I think because they don't. know what they don't know. Exactly. You don't know that. So that's the. biggest curse in business. Not only. entrepreneurs, it's great managers and. leaders and people as well. I think to. your point, the really tricky thing is. to know what good looks like. Yeah. Right. What does good look like, right? Oh god. Yeah. That's different. Like you judge some. work like what would great look work. look like. And it's when you've. established that understanding whether. it's in communications, marketing, you. know, whatever. You know what good looks.

like? Then your job becomes so much. easier. But but the only way to find. that out obviously to your point is. introducing external people, talking to. people, comparing, you know. Uh we also. did that actually with my CTO at that. point of time which was one of the. things we actually did that led me to. conclude that I had to let him go was. that I said because I was having a lot. of dialogue like should this takes this. long time and so forth. So one thing I. eventually said was you know what we do. we booked meetings with five other CTOs. in five large Swedish companies. So. among them were like Ericson the more.

traditional ones but it was also like a. gambling company that was doing. fantastic. There was a gaming company. Dice. Oh yeah. Um you know stuff like that. and we went. and had meetings with them and in those. meetings I started raising my concerns. and stuff like that and I was listening. to the the other company's CTO's. answering to the same discussions. Oh wow. Comparing it to the answer of my CTO and. in that conversation I really saw the. difference in how they were attacking. these problems and what their philosophy. is and the you know. and the level of optimism in which they. approach problems as well. for sure. because that's for me has been the.

biggest differentiator between the. really exceptional CTOs I've worked with. in San Francisco when I was there versus. bad ones is they have a everything is. possible attitude right and those people. are an absolute joy to work with speed. and optimism in a in a CTO is just makes. your life. for sure and again I just want to. highlight here that like my CTO wasn't. bad he wasn't bad. he he was totally fine and okay but he. wasn't the right person. to build a $45 million company like that. was just like two different things, right? Many of those.

No. No. Exactly. Right. So, he wasn't. exceptional and he didn't have the right. mentality. Yeah. To to do what we're doing now. Pain. Yeah. Part of the reason I started this. podcast was because and why it's called. the driver CEO is I wanted to show um I. wanted to really give a fair impression. of the other side of entrepreneurship. It's been super glamorized. It's. probably why you know that stat you. shared where it went from seven to 70%. That's probably why it's now seen as a. very sort of sort of glamorous thing. And I wanted to create a bit of a a. platform to share some of the harder.

parts of business. And listen, you've. built a company worth $45 billion. Like. I know that it was painful. Mhm. So talk to me about the the pain and the. unexpected pain that might have put you. off starting this had you known it. Had. you been had you not been naive enough. to to realize how painful it is at. times? But I think that like my a lot of my. pain I would feel equals when I see. athletes, you know, trying to throw or trying to.

jump and then failing and the. frustration that you see in them when. they cannot achieve what they want to. accomplish. I feel that's a lot of the. pain that I've experienced. So like my a. lot of my frustration and pain has been. associated with like oh you know I know. we can do this. I know we have the. opportunity to do this and we're just. not getting there. We're not getting. there. It's not getting through. It's. not happening the way it could be. I. think that's a big piece of a pain for. me is that lack of like ah so.

frustrating to feel like you're so close. something could be there but it's not. that. Um I think that that's one part. And I mean. another part is obviously um you know. when things go wrong and you're. frustrated because you know you wanted. something to be better and it didn't. work out and and stuff like that. So. you're very like uh you're challenged by. those situations. in terms of stress. Mhm. How do you feel that and how have you. dealt with that? Um.

I am not that stressed to be honest. I. don't know why. It's almost like to some. degree I'm almost more stressed when. things are good. No, because like like when we have some. crisis or something happens, right? Like. you know, we had an incident with some. breach of data uh for example um few. months ago, right? In those situations, as much as it's painful that something's. happened and I'm sad about potential. consequences for individuals that we.

might have made some errors, I feel like it all becomes like. execution mode. We bring everyone into. room. It's just like what do we do? What. do we do now? And I kind of in a way. enjoy that work. It's very concrete. It's very like you know focused. And. you're like there's nothing else. You. have to do only this now. Let's see. about what can we do about this problem? How are we going to fix it? Who's doing. what? You know, and so forth. In those. situations, I don't feel that stressed. Actually, I can even feel an adrenaline. in that situation. As much as it's. painful to me to see the consequences, I.

can feel an adrenaline and like, let's. get this to work. Let's do this now. Let's, you know, let's take on this. challenge that has suddenly arised. Um, it's funny, the best leaders, and I'm. sure you'll find this even in your. company, all seem to speak to that. They all seem. to be really emotionless in those the. the absolute chaos moments, right? And. it becomes, you know, a methodical. process of how to solve the problem. Yeah. Versus. and and I do think again as much as you. know I don't want to obviously I feel a. lot of pain from the perspective of like.

if we've done a mistake or done. something wrong as a company it might. have had implications for our customers. or whatever that's very painful but at. the same point of time those incidents. or the situations when you gone through. something that was very chaotic or very. challenging are the moments that have. created the strongest relationships. within the companies have shown you know. has shown some amazing talent stepping. up to like it's a little bit like you go. on a vacation, it's just sunny, you. don't really remember it, but if you had. like a, you know, a thunderstorm, you. you'll talk about it for for for years,

right? So, like there's something to. that. Um, so I think my stress may. actually more come from sometimes when I. feel like we're all kind of happy. We. all feel it's going well. Like it cannot. be true. There must be something that's. wrong. And I think Alex sitting over. there will will um we'll kind of smile. now because I think you will recognize. this. But like um so I think that that's. where I actually more get stressed from. like are we doing fast enough? Is this. good enough? Like. that's really interesting. I it come. also relates to your point about bit. needing to be challenged. you talked.

about in school when you'd read the book. and you got bored. and that it's funny because I I was. writing my book and I finished writing. my book recently and it was published. and one of the paragraphs in it talks. about how I used to believe that my life. was a um the pursuit of trying to get to. stability but in fact when you look at. when people arrive at a point of. stability everything is fine. when they've won the gold medal then. they descend into chaos. then they get depression and they get. they lose their sense of purpose and. then they they get irritable so I I. flipped it and thought you know my life. is actually the the the the pursuit of. of staying in chaos because chaos is my.

stability and if I ever get to. stability, completed goals, nothing to. strive for, then I descend into chaos. And it sounds exactly like what you've. described there. Aspiring and working for things is so. motivating, important. I think to some. degree, as much as Clana had a lot of. success in Europe, there's a kind of. funny story around this topic because. um you know, we were doing really well. in Europe and developing our services, but there wasn't necessarily that much. fierce competition from one perspective, right? And then as we were moving into. the US market, there's this company in. Australia called Afterpay run by Nick.

Oh yeah. And they're competing head-on with us, right? And they were doing really well. This is back in like 2018. And I was. like, ah, this is so annoying. Like. they're coming in here, they're taking. our market share, they're doing our. product, they're copying us, you know, all this frustration building up. And. the funny thing is I happen at that. point of time to be visiting with Mammud. who runs Bhoo, right? Oh, good friend of. mine. So yeah. So I'm sitting down with. Mimmude and I'm like complaining to him. and I'm like look Mimmude it's a little. bit like you know you know the Olympics.

when there's this guy who's been like. this is his fourth Olympic and everyone. knows like now finally he's going to get. the gold matter because he's been. training like and then this young guy. comes from nowhere and like but that's. so unfair. This is my fourth Olympic and. this guy comes in and Mimmude looks at. me and he's just like Sebastian shut up. Stop whining. stop whining and like this. is going to make you so much better. You. have been not having proper competition. You now have proper competition and it. is so true. CLA in the last 3 years.

thanks to the competition with Afterpay. in the US has become such a much better. company. It has helped us so much to. improve to get focused like and it was. just so funny when he was just like stop. whining me and I can't you know he will. speak his Manchester. I can't do that. I. won't be able to try to to replicate how. you express this but I thought it was. really funny. Well, that's my mood. I. remember the first time I met him. Um, I. was in his office four days that week. and he insulted me several times, but in. the most loving way, like you remember. him smashing his pen on the desk and. telling me how stupid I was because of a.

decision I was going to make. And we've. been I've been like good family friends. with with the whole family for for a. very very long time. Just on that point then, what was the. toughest moment in your cler journey? A moment you think that was that was the. worst [ __ ] day. Similar to there's been some media. scrutiny of us in the UK. We had a. similar experience in in Swedenbird a. few years earlier which was in around. 2012 and 13 and and like it started off. with this like media inquiry about what. we were doing because we were you know.

first just like oh it's an amazing. successful company and then where was. people like oh we're actually doing. credit and what does that mean and stuff. like that. and so there started to be quite a lot. of like and it actually started with a. mistake that we had done internally it. was an operational mistake we had done a. stupid thing um and and that had. resulted into a lot of customer. complaints and stuff which was our own. fault. But that was the beginning of it. And and I think through that process. when the paper started writing about us. in a negative way, um I kind of jumped. in and it's kind of funny because I was. actually at that point of time they had.

comments fields on the articles. So I. would go into the comments field and. write my responses in real time and then. other consumers and readers would answer. and I would answer them and even the. newspapers started writing about like. look Sebastian CEO is on our forum. discussing the topics. So I was very. engaged. She was sitting like working. 24-hour and I was thinking about like. how do we give because quickly the media. went you know out of control and there. was a lot of bias and and you know. inaccurate reporting and not just like a. lot of things some were accurate and. some was fair but a lot of it was also.

like out there and then obviously the. banks because we are a big threat to the. establishment banks so even you know. afterwards I've heard from journalists. that like a ton of emails were coming. from banks saying like oh you know. they're bad they're this and or whatever. cuz they simply, you know, they're. threatened by our existence. And so, um, so there was that going on. But I. remember what was the hardest thing to. me to point is that that situation. itself was fine, but at some point of. time the um uh the kind of articles and.

and the writing about us shifted from. they're bad, they've done these mistakes. to they have bad intent. They're here to. screw customers over, to do bad things, right? And that was tough. That was. really tough because I know that wasn't. true and I know that we have good. intentions and we're trying to do that. We have done mistakes and we can fix. things. But being judged and questioned. on your intentions of what you Yes, that. hurt a lot and I took that very hard and.

I took that to heart. Um, so that was. very very challenging to cope with. When those things happen, what kind of. partner do you become to your your. romantic partner? your wife. You got a. wife. Yeah. Yeah. She knows that I'm like extremely. passionate about Clana and the company. and and I think that she's um she knows. that like a lot of my thought process. will be here all the time. Right. So I. think that but but you know I'm very. lucky in the sense that Nina is an. amazing uh person herself. She's done.

amazing things and now she's running a. startup with 30 people. Um so that helps. because she has her own like things and. and and actually we can come together at. dinner table and we can you know um we. can talk about the challenges and the. things that we um um that we face. and we can exchange thoughts about that. So it it we have three kids as well. right I have a four-year-old and a. six-year-old and a seven-year-old. So um. so I actually you know as much as I live. my life I try to work really hard and. then come home turn off the phone be.

very present with the kids and then they. go to sleep and then I get to work some. more and then me and my wife has a very. like which is I think maybe most. families with kids our age but you have. a very strict you always thought that. that was going to happen. You're going. to stay spontaneous and all that you end. up having an extremely strict calendar. where it's like Wednesday is dinner. night me and Nina have dinner together. Tuesday we're working like nights and so. forth. There's extremely strict. calendars to make that work. Quick one. As you probably know by now, I'm trying to make my life a little bit. more sustainable. And I consider myself.

to be on a bit of a sustainability. journey in the same way that I'm on a. health journey. And it's a privilege to. be able to share that with all of you. And you you all know if you've listened. to the last podcast that I traded in my. Range Rover Sport in for an electric. bicycle, which is now my only vehicle. And next year hopefully I'll have my. electric car too if Tesla hurry up with. a Cybert truck. And that's where my. energy comes into my life and my sort of. sustainability journey. It makes your. life, if you are on that sustainability. journey, 10 times easier. This is one of. their, if you can't see this, I'm.

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looking to make a conscious switch and. you need a quick fix that's going to. save you a load of time, then head over. to myenergy.com to see this product and. many many more. You you're grew up from. a very humble beginnings with an. immigrant family as you've said and. because of the success of Clana that's. now made you very wealthy and it's. something wealth beyond probably you. ever imagined. I don't know don't know. how ambitious you were but um what role. does that that play now in your life in. terms of your relationship with money? It was the thing that as you say you.

thought might have been liberation from. a lot of pain and heartache and what. role does does the financial um side of. it success can play play your life? I. think it's an interesting topic and and. you know I've been asked sometimes like. the classic question like does money. make you happy right and and you know I. I I understand why some people try to. say no it doesn't because to some degree. like you're the same person even if you. have a different income level and wealth. than you used to have. So you're the.

same person. You still get angry at. things and sad at things. You know, still things happens. You you lose a. relative or something happens in your. life, you know, you go up and down. So. from from one perspective, I can. understand why people But I've stopped. saying that because I actually think. that it's slightly out of touch. I mean, there are elements in my life I don't. have to worry about. Like I mean I can. still remember the feeling of like you. know I used to go into 7-Eleven and I. would be like I would just love to have. orange juice but I can't afford it or I.

would just love to have a Snickers or I. would just like like and I remember the. day coming in into 7-Eleven like it. doesn't matter. I can buy whatever I. like in the store. It will have no. impact and that is a difference and I I. just you know I think it's a little bit. like out of touch to say that that. doesn't impact you. I don't have to. worry. I never worry about finances. Like it's all taken care of, right? And. that obviously creates a different life. It gives you a different then I'm not a. big like I'm I I don't like have 10 cars. or anything like that. I'm not a big.

interested in cars. I don't like I'm not. necessarily the person I I have a couple. of things like I have for example my I'm. very very proud that I bought a Steinway. piano that is selfplaying. Oh, perfect. Yes. So you actually have this like app. like Spotify and you can go in and. select. Perfect. And you can sit there do the. video. Yeah, exactly. Pretend that I have. learned to play piano as well. So like I. have some like luxuries that I've really. afforded myself that I think we have in. a beautiful house and and and things. like that. But. but you know, but I still think that. like the key thing is I don't worry. about it and I know that most people and.

I remember myself worrying about it, right? Worrying about next month, end of. you know, end of these things and and. that is a difference in life obviously, right? So that has changed. I read. something which was um was quite. difficult to read actually which was. about your father. and his response to your success. Yeah. Not being not being particularly proud. necessarily of your success. Yeah. But that also comes back to. alcoholics like because so what ended up. happening in my u my life right is that.

u my grandpa unfortunately drank himself. to death and then when I was growing up. my father was very conservative and I. never saw alcohol in our house. he. barely had a bad glass of wine and. unfortunately that started changing in. my like teens. So I started discovering. bottles of vodka at home and so forth. And then over time uh there were. instances where I would come home and. dad would be quite drunk and and act in. a very irrational way and he became more. aggressive and and so forth. And and and.

this was at a point of time where I was. still out partying and drinking and so. forth. And it was interesting because at. that point of time as and that just. tells you about you know the problems of. alcohol uh um addiction I never. reflected that maybe I have a problem as. well right that was like out of. course not like there was my father who. had an issue right and but he. unfortunately found himself in a spiral. in his life where and I think it's.

almost like people find themselves in a. positive spiral negative spiral the. posit also spiral is like you know what. I can actually affect my own life and. now I'm going to try it a little bit oo. things got better you know what I can. maybe do even more I can do even more. and then some people are on that. positive part what other people find. themselves in a negative spir like I. have found myself in this it's not my. fault it's everything else's fault and. then you know things get even worse and. then look and they just found himself in. a very negative spiral and obviously I'm.

simplifying people are different in all. these situations but there's something. in that and and dad found himself in. that spiral where it was everyone. everyone else and alcohol tends to. extrapolate that and make it even. stronger that you you basically blame. everything else and you take not don't. take the responsibility that's the. beginning of the 12 steps of the. anonymous alcoholis is actually to take. responsibility for your own actions and. so unfortunately and it it it went as. far as as um you know he he lost his job.

he he lost his apartment and uh and I. found myself in a very tricky situation. because at simple my economical. situation was improving heavily and I. was trying to figure out what what do I. do now because. he could call me and he would ask for. money and I would be like well of course. I want to help my father and so I would. help him and then if I did that I didn't. hear from him for a couple of days and. then he would call me super drunk or. text me something very you know nasty. and so it was very difficult because and. then I started seeing counselors and.

understanding that like maybe actually. in this situation I needed to put like. limits. you know, and and ask him to not um uh. to to say, "Look, I'm not going to do. this unless, you know, you do this and. stuff like that," which was kind of the. right way to deal with it. But very very. obviously tricky. And unfortunately, in my situation, it didn't uh didn't. work. So, at the end, there was a. situation where, you know, um he was um. uh he was about to lose his apartment. and he'd had a discussion with me and I.

was very like ambiguous. Should I help. him, should I help him or not? And um. and then I was it was an evening in in. the office and suddenly I see my phone's. phone number. He's calling me on the. phone and I was like I don't know yet. what the right answer is. Should I help. him or not? What should I do? It's. difficult. So I was like I'm going to. call him later. So I didn't answer the. phone. I went home. I had dinner with my. wife and we talked about it and then I. was like no this time around I should. probably help him. Uh I decided and I. tried to call him and he didn't answer.

and I emailed he didn't answer. And I. was like, "Okay, fine. Maybe you just, you know, whatever." And then in the. morning, my mother called and said he. was dead, right? So it was a so that was. like a very very obviously dramatic. moment in my life and very difficult. like uh you know from that perspective. So um he he was so smart. He was so. thoughtful. He had gone to the places. where he had worked. He had tried to do. things better and so forth. He had been. in normal places where if you know I.

remember him working for the. municipality for example and he integ. like he created some Excel systems that. would rationalize everybody's work and. nobody wanted to rationalize their work. because that meant that they would have. less to do and then maybe somebody would. lost their jobs. So he's doing all these. things and nobody was showing gratitude. to his attempts of trying to fix things. and things similarities to what I'm. doing. I could see him having those. things, but because of his background, because of his situation, and to some. degree probably because of his ab, you. know, addiction, he just found himself. in this negative spiral rather than the.

positive spiral that I found myself in. And it just made him, you know, more. more depressed and and and and that made. him also very difficult for him to. relate to me because like in one way I. must believe and hope that at some point. of time he was proud and and and you. know, happy about how things have. evolved in my life. But at the same. point of time, it was very clear that he. felt frustrated by the fact that what he. had gotten and how his life had turned. out compared to mine. As as as crazy it. might seem that your father would relate. in those terms, but I think.

unfortunately that was part of the case. So, you know, it's very tricky and. difficult. Um and uh but I'm very happy. at least that I stopped drinking and I'm. I'm a I'm a sober alcoholic since nine. years now. So, Oh, amazing. Yeah. Well done. My last question then. Um. that was incredibly, you know, incredibly moving for so many reasons. And I think it's um it's really also. inspiring that you have that sense of. sort of empathy to be able to look back. at on your father and understand that a. lot of his um circumstances came from. his own pain. and that was a generational cycle.

Yes. One that you you have the power to. to to stop. Yes. Per say. And um and. also to kind of it sounds like you've. kind of forgiven him for. Yeah, I have because look I think you. know people I don't think people still. fully understand alcohol uh alcoholism. in my opinion. It is a disease. He was. sick. He had an you know he had an. addiction. Yes. Was he does that mean. that he couldn't cure himself? No. He. could cure himself. If he would have. found himself on a positive spiral he. might have been able to cure himself. That doesn't mean he wasn't sick. This.

the father that I had last years was not. my true father. Those are not the. memories that I have from my youth when. he would bring me into the forest. outside Upsola and we would go on long. walks together and we would fantasize. about being space explorers or he would. introduce me to amazing science fiction. literature or what are these things like. there are different memories of my. father that was my true father that was. a sick man and and that's just. unfortunately like how things develop. right so. I know you're a father um three. beautiful kids um what matters to you in.

terms of the the principles in which you. you hope to raise them. And obviously. now, as we talked about at the start of. this podcast, um much of the the I guess. the the circumstances that created you. were because you you were you went. without and you didn't have, you know, things handed to you and you formed that. connection that if I'm going to be then. it's going to be a direct result of my. actions. So, what do you what's your. thinking as and what do you want to. impart on them? And. yeah, this it's it's a topic I tend to. talk a lot about with my wife and it's.

very difficult. Um, I mean it it's a. mix, right? Because first and foremost, like obviously my kids are not going to. have the same upbringing that I had. Like there is a massive difference like. you know look at our vacations, look at. our summer house, look at like all the. things there like there's no way I'm. going to be able to ever like recreate. any of that. But um but that's you know. that's part of it. And I but I do think. also like when it comes to being spoiled. like to some degree to be entirely fair. like and I love my mother. She's. amazing. But she did spoil me. She had a.

very hard time saying no. And if we were. in the grocery store and there was some. candy and I would be like I want candy. She tended to give me the candy. So I'm. a pretty spoiled person by my. upbringing. Even though we didn't have. that much financial means. Now she. wouldn't buy the candy if there was no. money left. But if there was money left. she tended to buy it and then there was. no money left for something else. Right. So like she had my my especially my mom. had very hard time putting nos to me and. she would say yes to basically. everything as long as she could. basically right um so you can spoil. somebody without having financial means. to some degree right um.

now uh so that's one thing but but there. is something where you know and it was. funny because now it's like my son was. invited to like a you know a party a. birthday party with some of his friends. like six years old right and you're. standing and talking to the parents and. we have this amazing school is not a. private. It is a private school, but. it's not kind of though like upper class. private schools. It's actually a really. nice school with a good mix of people. from all types of society and stuff and. but very ambitious teachers and and a. good school and and we're starting and.

the other parents are a little bit like. complaining about like, you know, oh. this could be better and this could be. better and I it's not like I didn't. agree with them that some things were um. couldn't be improved in our school as. well as there always can be. But then I. told him to I I I like stopped him a. little bit and said, "You know what? I. to be honest like for myself if I think. about the schools that I went to in the. environment I brought up into I. sometimes wonder whether I want my kids. to continue going to this very good. school or whether maybe when they're. like 12 or 13 I'm going to try to find.

the worst school in Sweden and put them. in there for 3 years just to create a. little bit of resistance like to get. something like a different perspective. on like be in an environment where it's. very difficult and like I was like. because I really want them to get the. resistance. I want them to get to know. themselves and get to know that they can. actually fend for themselves, that they. can solve these problem for themselves. I don't want them to be without. resistance. And I feel like all of our. parenting today is about like remove all. resistance and I'm like no no I want.

some resistance. And the funny thing is. I'm telling this to the other um parents. and they're all looking at me like is he. stupid? Is he is he wacko? Like what's. wrong with him? Like you know I was like. no no no I want some resistance right? And I remember that just to to round. off. Look, when we did that round the. world trip, uh we had very little money on that trip. and at some point of time we arrived. from Singapore to to to uh Brisbane and. we were going down to Sydney and we were. actually supposed to take the cargo ship. the next day to go to uh US already. So.

we were only going to stay one day in. Australia, but we missed the boat. We. had an unfortunate event and we came too. late and the cargo ship was not going to. wait for two passengers, I promise you. So, they just left and we went to the. firm that helped us find these cargoers. ship trips and they said, "Sorry, next. boat is in a month." And we're like, "Okay, but we don't have any budget, no. money, and now we're like stuck in. Australia for a month." Obviously, quite. a nice place to be stuck, honestly. But. but still like, and I remember walking down the street, I think it was Elizabeth Street or.

something in in Sydney. And I remember. that like I have no job. I have no. money. I have nowhere to stay. I have. only my backpack. and you were like, "And we're going to stay here for a. month. Let's try to start a life." And. we had to find a place to live that was. affordable. And we had to find a job. And we actually started working as uh. furniture movers for a company called. City Move. Everyone worked there called. it Chitty Move because they had this but. it was like and we were and so but the. point is that like it taught me I can. fend for myself. I'll survive and like.

it's only dependent on me and it that. resistance created a sense of like you. know I can do this and so forth, right? And So that's what I hope to give my. children somehow. But how would you do that if you pass. them your wealth? Well, that I'm not sure I'm going to. pass them the wealth. So I actually have. officially said in some interviews in. Sweden that I am and and my wife and me. are still not entirely aligned on this. topic, but I have actually said I'm not. going to give them anything. And I tell. them in that um and it was even funny. because you know in Sweden I'm quite. well known. So even the fact that I said.

so on public TV then my kids heard from. their friends like dad you said on TV. that you're not going to give us. anything. That's unfair. We want like I. know like stuff. No, but I've been. telling you consistently like when. you're 18 years old, you're on your own. Like and then my wife always but we may. buy an apartment for them, right? And I. was LIKE I'M NOT SURE. LET'S SEE. Like I. just there is to your point like I mean. I don't I I don't want to like and and. in Sweden also it's a little bit. provocative for somebody with money to. say I'm not going to give anything. because I I don't I'm not saying I don't.

believe in welfare. I think sometimes. you need to support people in in. difficult situations and so forth. So I. said look I'm not talking about people. in general. I'm only talking about my. kids, but for my own kids, I'm not. convinced that giving them all of this. is going to make them happier. And I. meet a lot of people from family wealth. that have inherited wealth that are. extremely unhappy with the pressure and. the expectations that comes with that. So, as much as again, I I'm not saying. that money doesn't make you happy. We've. already talked about it, but like there. are some aspects of it that are very. difficult. And I think that like in.

general building a person's own. self-confidence and belief in their own. abilities to actually have a positive. impact on their lives. I still still. think that that is the key, you know, uh. path to happiness. I agree. Listen, Sebastian, thank you so. much for your time and your honesty and. your humility and um you're a massive. inspiration to me for so many reasons, not least for your business success, but. I really do come back to that point. about you building such a great tech. company without technical expertise. I. hear it all day every day from. entrepreneurs. I felt it myself. I think.

I've told myself that there's certain. industries I can't build in because of. that because I lack fundamental. expertise there. Um, and I think you you. kind of buck that trend and prove to me. and entrepreneurs listening that you. can. Um, if you have the drive and. determination and that underlying. self-belief to get there. What you've. done is just absolutely phenomenal. Unbelievably pleasant human being as. well. And um, you're very sort of very. very honest and I think that's um, that's a gift that that I'm glad you. shared with us. Thank you. Um, but yeah, thank you so much for your. time and uh I can't wait to continue to.

watch your journey. It's been a. pleasure. Exciting. Thank you. Thank you so much. [Music]. [Music]. [Music].