AP6

The Stanford spark and the myth of easy venture In 1999, Staffan Helgesson, then a consultant at McKinsey, found himself in the Stanford University cafeteria during a training trip to the Bay Area. It was a localized epiphany. He witnessed a culture of innovation that had not yet crossed the Atlantic. With the naive confidence of a visionary, he assumed that replicating this model in Europe would be straightforward. The reality was a twenty-three-year grind that transformed a regional Nordic fund into Creandum, a global venture powerhouse. Helgesson’s first attempt at a venture firm focused on the mobile internet. It was a spectacular case of being right too early; the firm dissolved because the necessary infrastructure—specifically the iPhone—wouldn't arrive until 2007. However, the integrity he maintained during that failure secured him the backing of two visionary Swedish pension funds, AP6 and Skandia. These Limited Partners (LPs) didn't just provide capital; they provided the long-term permission to build a venture franchise that ignored the standard ten-year fund cycle in favor of something much more aggressive. Rejecting the three-fold return trap When Creandum launched, the European venture landscape was littered with firms practicing what Helgesson calls "3x investing." This was a risk-adjusted strategy designed to return three or four times the money on every deal. In theory, it sounded safe; in practice, it was a recipe for mediocrity. Because venture risk is often hidden, a 3x target usually results in a net fund return of barely 1.4x. Helgesson pivoted to the Silicon Valley model: chasing the outliers. This strategy requires a stomach for volatility and a commitment to "writing the winners" for nearly two decades. While the industry standard for fund life is ten years, the average fund length at Creandum is 17 to 18 years. This isn't just a preference; it is a structural necessity to capture the full value of generational companies like Spotify. When LPs demanded early liquidity in 2011, Helgesson refused to sell winners just to satisfy a spreadsheet. One LP walked away; the fund eventually delivered a 13x return. This illustrates the fundamental divide in venture capital: those who manage for quarterly optics and those who manage for terminal value. The virtuous circle of the Spotify effect Every elite venture firm needs its "big hit" to ignite the virtuous circle of deal flow. For Creandum, that hit was Spotify. Before Daniel Ek proved that a global category leader could be built from Stockholm, the prevailing wisdom was that European founders had to relocate to the Bay Area to scale. Spotify shattered that glass ceiling, creating a blueprint for others like UiPath in Eastern Europe. This success creates a compounding effect through "kids and grandkids"—former employees of unicorns who leave to start their own firms. Skype produced over 600 such entities; Spotify and Klarna have produced scores more. This talent recycling is the engine of the European tech ecosystem. Helgesson notes that while Europe has lost significant market share in the large enterprise sector over the last 25 years, its small enterprise and startup volume is surging. With over 70 unicorn cities today compared to just three a decade ago, the continent is finally weaponizing its 500-million-person talent pool. Street fighting for the Lovable deal Brand in venture capital is often mistaken for an empty shell of PR, but Helgesson argues it must be rooted in the "street fighting" reality of deal-making. Even as an established firm, Creandum maintains an "underdog" value. The recent investment in Lovable, an AI-driven software development platform, serves as a masterclass in modern sourcing. The firm tracked the team for 15 months, passing on a pre-seed round but maintaining a close relationship until the product found immediate market momentum. The competition for Lovable was so intense that exclusivity had to be renewed three times. Helgesson describes a process where speed is the ultimate currency. In a world where Silicon Valley firms can close a deal between Monday and Friday, European investors cannot afford a leisurely due diligence process. The Lovable team, focused entirely on shipping code and achieving their vision of building "the last piece of software," frequently ignored lawyers and data rooms. For Creandum, this friction was a positive signal; it indicated a founder obsession with product over process. Building a franchise through equal partnership Longevity in venture capital is rare because most firms are built around the egos of their founders. Helgesson has intentionally structured Creandum as a "franchise" rather than a mere firm, borrowing the "naked in, naked out" philosophy from his McKinsey days. This ensures that the organization survives the retirement of its founders. At Creandum, all nine partners share upside and downside equally. There is no internal competition for carry; a partner has the same economic incentive to help a colleague’s deal as they do their own. This parity allows the firm to deploy ten people to a single deal over a weekend if necessary. Most of the firm's GPs are homegrown, starting as associates and rising through the ranks. This cultural consistency is what allows Creandum to maintain its "underdog" edge despite its multibillion-dollar success. The goal is to be the first to hear the "train on the rail"—anticipating trends by listening to entrepreneurs rather than trying to out-think them. Implications for the next generation For emerging managers, Helgesson’s experience offers a stark warning: pick your LPs with extreme care. He advises seeking investors with "20-year Excel sheets" who understand that true value creation is a generational task, not a cyclical one. The pressure to show early Distributions to Paid-In Capital (DPI) can force a GP to sell a winner too early, a mistake that can cost a fund its top-tier status. As the European ecosystem matures, the distinction between cultural and structural barriers is blurring. The "fear of failure" that once characterized European business is being replaced by a brutal ambition exemplified by Spotify's goal to be "better than free" or Lovable's aim to automate software creation entirely. The future belongs to those who can bridge the gap between the aggressive speed of Silicon Valley and the patient capital required to build enduring European institutions.