Land ahoy! The rise of Iceland’s Pirate Party

Election day in Iceland is an important occasion for most, with 81.4% of the population showing up to vote.
Election day in Iceland is an important occasion for many, with 81.4% of the population showing up to vote. The local supermarket had election day cakes for sale.

Yesterday was election day. Like many Icelanders me and the Missus treated it as an occasion. We wore presentable clothes, we baked a cake (not the one shown above) and we went out to vote. Iceland traditionally has a high participation rate in its elections with yesterday’s 81.4% showing being considered a poor turnout.

Most people are talking about the ruling social democrats losing half their votes with the pre-crash ruling parties being returned to power. But one of yesterday’s most interesting developments was the fact that the Pirate Party won 3 seats (out of 63) in the parliament. It’s the first time a Pirate party wins seats in a national parliament.

The Pirate Party’s campaign practically wrote a new textbook on grassroots campaigning on the Internet. Their campaign budget was miniscule compared to their competitors, the campaign HQ was a market stall (as opposed to many of the others’ swanky locations) and days before the election they launched a website that analyzed publicly available data about MPs voting records that produced headline catching information about how often our democratic representatives were showing up for work.

Having your election cake and eating it too

Two of the main goals of the international Pirate movement are 1) to increase transparency in public life and 2) to protect the individual’s right to privacy, especially online. The Icelandic Pirate party is no exception, as they showed in practice with their voting record website mentioned above.

But transparency is a double-edged sword. The MIT Technology review published an article recently on how our love affair with data can undermine the individual’s right to privacy. Their example was the publication of data about campaign donations to the anti-gay Proposition 8:

Under California’s campaign finance laws, all donations greater than $100 to groups advocating for or against Proposition 8 were recorded in a publicly accessible database. Someone (it’s still not clear who) took all the data about the proposition’s supporters—their names and zip codes, and their employers in some cases—and plotted it on a Google map.

After finding themselves on the map, some supporters of Proposition 8 said they had been harassed or found their businesses being boycotted.

Lawrence Lessig, one of the most influential thought-leaders on another issue the Pirates care deeply about, copyright, wrote an essay titled Against Transparency. He argues that having more data about politicians is more likely to mislead people into cynicism than to make politics better.

Some contend that the Icelandic Pirate website on MPs voting records was an example of precisely this. MPs in opposition often find themselves being unable to show up to vote because of how the majority schedules voting sessions. In this case more data didn’t necessarily mean better information.

A force for good

Although one of the Icelandic Pirate MPs is a global warming sceptic (suggesting that he’s better at gathering data than interpreting it) and supports publicly publishing the names and addresses of convicted paedophiles (suggesting that in his case transparency trumps – erm – lynch mob wariness) the party itself is comprised of honest, intelligent individuals who are spin-free and work hard. It will be interesting to see what they come up with now that they have direct access to the country’s most powerful institutions and whether they can indeed have their cake and eat it when it comes to transparency and privacy.

 

Bitcoin: Should currencies compete? A note from currency controlled Iceland

Over dinner in London’s Covent Garden in August 2008 my parents, wife and I were entertaining a thought experiment: “What would happen if our banks were next?” It seemed like such a remote possibility. As it turned out, it was anything but remote: Two months later all of Iceland’s major banks went bust.

After the crash the government quickly imposed currency controls restricting the flow of money out of the country. International money transfers, investing in the latest Silicon Valley IPO, travelling abroad with more than a few thousand dollars – all were off the table. “First world problem,” I hear you say. Sure, but first world problems affect first world companies and economies. The CEO of computer games producer CCP recently said that it’s been hard for them to attract foreign talent to Iceland because the new employees won’t be able to take their money with them out of the country.

What you realize under these conditions is this: Your money isn’t entirely yours. At least not in Iceland (or Cyprus).

Taking back your own money

Which leads me Bitcoin. Bitcoin is an electronic form of cash. You keep coins on your computer and instead of handing someone a dollar bill you pay for goods by sending the coin electronically, without a middle-man.

Could a population that doesn’t have a functioning currency decide, from a grass roots level, to adopt a currency not under direct government control? Could something like Bitcoin complement, or even replace, a currency that for some reason doesn’t work?

A troubled currency: Even in the relatively stable 2002-2004 period the value of the currency went from 110 ISK to the dollar to 70 ISK to the dollar – a 35% change.
The price of a dollar in Icelandic Krona (USD/ISK): Even in the relatively stable 2002-2004 period the value of the currency went from 110 ISK to the dollar to 70 ISK to the dollar – a 35% change. Using the Krona was painful even before the curency controls. Source: Datamarket.com

Felix Salmon at Reuters recently made the case against Bitcoin as a viable primary currency in “The Bitcoin Bubble and the Future of Currency” pointing out the consequences of the upper limit of the number of bitcoins in circulation (for technical reasons there will never be more than approx 21 million bitcoins in circulation):

In order to have economic growth, you need monetary growth as well — and that’s something which is impossible to achieve in a bitcoin-based system. Currencies such as the dollar, with a central bank which can print money at will, have succeeded for a reason. As economies grow, the money supply has to be able to grow with them. And that’s why bitcoin can never really succeed over the long term.

If Felix is right and Bitcoin is off the table as a primary currency, could it be used as a secondary currency? Could the Krona and Bitcoin be used in tandem?

May the best currency win

Let’s imagine Bitcoin has hit the mainstream and your mom can use it to pay for her groceries. It lives alongside a country’s primary currency. You could charge for your products, pay salaries and post financial results in a currency that’s immune to decisions made by politicians. And when it comes to paying taxes you do so in the government’s chosen currency.

Would a government that has to compete with an alternative currency to its own be more likely to refrain from making politically motivated decisions that have an adverse effect on its currency (like ours always does)?

That’s a pretty far fetched thought experiment, right? So was the crash only months before it hit. And even if people sometimes over estimate how much the world changes in a year, they usually under estimate how much it changes in ten years. So maybe it’s a thought experiment that could be worth discussing.

 

Further reading

Bitcoin makes journalists say stupid thingsStating the Obvious. The reason why I hesitate to blog about economics or Bitcoin (let alone both). It’s easy to say stupid things when the issues are complicated.
BitCon: Don’t, The Market Ticker. Entertaining anti-Bitcoin rant.
The Money-ness of Bitcoins, Mises Daily. Thought provoking article on what needs to happen for Bitcoin to become mainstream (a lot).
The Crypto-Currency – Bitcoin and its mysterious inventor, New Yorker. You need to be a New Yorker subscriber to access this, the only reason I include this is because it’s what originally sparked my interest in Bitcoin.

Burgers, lobsters and business models

lobster-art

Sometimes you have meals that simply blow your mind. Sometimes you come across business models that do the same. And sometimes they’re the same thing.

Last weekend I had the pleasure of dining at the SoHo branch of the restaurant Burger and Lobster. The concept is simple:

  • There are three items on the menu: A burger, a lobster and a lobster roll
  • Every item costs the same: £20
  • You can’t book in advance, so you simply wait (except for parties of more than 6)
  • There are two desserts: Chocolate based and vanilla based (heavy and light)

We came specifically for the lobster roll, which we’d discovered while travelling in Maine, and suffice to say it was delicious. So is the business model.

Let me explain:

People don’t waste time scanning the menu, because there isn’t one. The food is served super quickly because the kitchen is simply churning out hamburgers, lobsters and fries. Stock waste is close to zero because the restaurant buys such a limited range of ingredients. And £20 for a whole lobster isn’t bad (but it does make for a high-margin burger).

The first restaurant opened in Mayfair in late 2011 and there are now four of them. The one we went to in SoHo is huge. So: Bravo Burger and Lobster. Business model innovation in the restaurant industry still seems very much possible.

Would you like fries with that? Feature-creep as an upsell in enterprise software

“Would you like fries with that? Do you want that Supersized?”

You start out ordering a hamburger and you end up with a meal for three. In fast food, upselling results in larger meal portions – and larger clients. In enterprise software, upselling leads to a much more expensive result: Complexity.

In a case study published by a market leader marketing resource management solutions, one client’s story starts like this:

Initially we set out to create a marketing asset library

We all know how this goes:

The solution … evolved into much more than the simple asset library [we] initially set out to create

Of course it did. Do you want that digital asset management solution supersized? This wouldn’t be so bad if it didn’t result in such complicated systems and long implementation times.

According to Gartner research, the average time it takes to implement the leading marketing resource management solutions is 5.9 months. So from the shaking of hands and lifting of glasses in the meeting where you decided to get your marketing assets in order you still have to wait almost half a year to see the plan bear fruition.

In 5 Reasons why Digital Asset Management is broken we outlined different reasons why digital asset managment software is still in the stone age. Why can’t you try a digital asset management solution as quickly and easily as you can try a customer relationshiop management solution (CRM)?

One of the culprits is the upsell. The vendor wants you to talk to him directly so he can estimate how much he can sell you. Following this they set out to write lots of tailor-made software which results in higher bills and a more complex system.

Brand Regard is changing this. Our mission is to fix digital asset management:

  • You can start a 30 day free trial in minutes
  • It’s a fully hosted software-as-a-service solution
  • There are no set-up fees
  • Most importantly of all: It’s as easy to use as Google, Amazon or Facebook.

Forget about ending up with a bells-and-whisltes solution that requires staff training. Forget about a 5.9 months implementation period. Brand Regard is easy to use and you can have your assets in our cloud within minutes.

This post originally appeared on the Brand Regard blog.

An Icelandic startup using London’s Tech City as a launchpad – my talk at the British Embassy in Brussels


I had the pleasure of being invited to give a talk to a selection of some of the most exciting technology companies in Belgium and Luxembourg at the British Embassy in Brussels along with Richard Barnes the deputy mayor of London (who speaks Norwegian – now you know that),  Rossana Lawes, Director of Development at the Olympics Park Legacy Company, James Blakemore of Sector Marketing and Chris Moore from Tech City.

My talk was titled “Why Tech City?” and was about our experience of running a company in Iceland which is targeting London as its first market for international expansion.

About us: A tale of two cities

For a company like ours it makes perfect sense to base our development team in Reykjavík rather than London. Office space in London can cost more than fifty times what it costs in Reykjavík per square meter, the talent pool in Reykjavík is rich and the work ethic is strong. Skype was originally developed in Tallin, Estonia, which is still the company’s largest office.

But business development is a different story. With under 320 thousand inhabitants Iceland isn’t a big market. So every Icelandic startup is founded with the idea of expanding outwards. So where do you go? Silicon Valley? Berlin? Shanghai? We chose London.

The opportunity: London is huge – and it’s not just a technology hub

“Why London rather than Silicon Valley?” We get asked this a lot. Our flagship product, Brand Regard, is a software-as-a-service brand asset management application. Our target users are marketing and branding professionals and one of our routes to market is via advertising and branding agencies. There aren’t many cities in the world that rival London when it comes to targeting these kinds of companies.

Would it be easier for us to raise more funding if we were based in Silicon Valley? Maybe. Would it be easier to get traction? Not necessarily. And funding usually follows traction – not the other way around.

The challenge: London is huge – but the startup scene can help

Finding decision makers, setting up meetings, closing deals – most of this is harder and takes longer in London than in Reykjavík. Both because your support network won’t relocate along with your business and because London is one of the biggest cities in the world. This is where the city’s startup scene can be helpful.  Places like Tech Hub and networking events like the Silicon Roundabout Social Club (and many more) are full of people who, despite being busy building up their own business, are eager to help. This leads to introductions which lead to deals.

It remains to be seen where London’s recent growth in tech startups will lead and there is no cliché more tired than comparing a burgeoning tech scene to Silicon Valley. But thanks to the know-how that has been built up in London over the last decade, the city has become a very viable place to build a technology startup. And for enterprise software companies like ours, proximity to the client is at least as important as proximity to funding and early adopters.

Which is why we choose London.

MS Siegler, Galaxy Nexus and the iPhone 4S – capitalist pigs and Mercedes analogies

I’m planning on updating my mobile phone soon. Last time I switched from the iPhone and went for Android (and blogged about it). This time, should I stick with Android and go for the Galaxy Nexus or do I switch back and go for the iPhone 4s?

By far the most enlightening articles I’ve come across on the  matter are two recent reviews of the Galaxy Nexus on TechCrunch:

Although the two authors reach two different conclusions, the unsurprising consensus is that the iPhone has a superior user interface. But it’s intangible. It’s the attention to detail, the little things. And it’s hard to describe. So, Siegler comes up with an analogy:

I imagine it’s probably hard for a Mercedes owner to describe to a Honda owner how attention to detail makes their driving experience better when both machines get them from point A to point B.

Superblogger and Mac enthusiast John Gruber concurs and adds that:

You either see [the iPhone's UI superiority] or you don’t. If you don’t, that’s cool, enjoy your Nexus.

Joshua Topolsky however, who writes for the tech blog Verge, does not concur. He writes a response to Siegler’s piece titled “Horseshit“, where he contends that only elitist capitalist pigs use Mercedes analogies when discussing mobile phones. MS Siegler responds here.

This is all very entertaining, but where does it leave us? Galaxy Nexus or iPhone? Marx or Engels?

I’m leaning towards the Nexus. To stick with the automobile analogies, I’m going for the somewhat clunky Batmobile rather than the super smooth Mercedes. Maybe because the Batmobile is better integrated with the various Google services, because it plays nicer with 3rd party apps (even if they always look uglier) or because Google strike me as being less evil than Apple – albeit, only slightly so.

I can see that the iPhone has a superior UI – I get it. But I’m still probably going for the Nexus.

London’s Tech City woos European entrepreneurs

“The British Ambassador Ian Whitting requests the pleasure of the company of Geir Freysson for dinner,” stated a letter that dropped into our mailbox a few months ago. Stapled to the invitation to meet the ambassador was the message “Tech City and UKTI visiting Reykjavik”.

Research shows that more than half of Silicon Valley’s tech startups are founded by immigrants. Someone noticed. Tech City, the UK government’s initiative to turn London into “the digital capital of Europe”, is now doing its utmost to reach out to European startups and convince them to set up camp in London.

One of the most important factors about Tech City is that it’s not just a government initiative. It wasn’t designed by a committee or dreamt up by a think tank. It’s an organic product that grew out of a unique set of circuimstances: Talented techies, (relatively) cheap office space and a city that is a world leader in countless industries. Over the last five years or so there has been an explosion in the number of tech companies starting up in London and Tech City is starting to get more and more press (see the Guardian’s “The Magic Roundabout” or Business Insider’s “Get To Know The Startups In London’s Tech City“).

I’ve been very impressed by the effort being put into Tech City recently, especially on the international side of it. The company I co-founded, Transmit (some know us as Brand Regard, which is our flagship product), has its headquarters in Reykjavík, Iceland. We are convinced that Tech City is the right place for us to expand our operations. From what I’m hearing from other European entrepreneurs, we’re not alone.

Silicon Roundabout Social Club

Mysterious looking Google-sponsored cocktails, VCs from top-tier funds, entrepreneurs ranging from the almost-started to the Y-combinator graduated to the fully VC funded, representatives from France (NOT Paris), Slovenia, the US and China. It can only be: The Silicon Roundabout Social Club (#SRSC).

Hosted by Mixcloud and sponsored by Google, Accel, Springboard and IC Tomorrow, SRSC is becoming one of the better startup related networking events being held in London. Yesterday was the third meetup and it was a great success.

There is substance behind the “Silicon Roundabout” hype. The area around Earth’s most uninviting road junction, next to Old Street station, certainly is becoming a hub for startups and the events hosted by companies like MixCloud and TechHub are both useful and entertaining.

Glug and the Roundabout Brewery launch in London’s answer to Silicon Valley

Gluggers chatting in Cargo's beer garden

On one hand it is the hip and cool hub for both the technological and creative side of the UK’s digital industry, the birthplace of Last.fm, TechHub and numerous cutting edge agencies. On the other it is a slightly run-down and rough area, named after a king’s mistress called Shore who died in a local ditch. It is Shoreditch.

With its mixture of cool and slightly rough Shoreditch is the archetypical London neighbourhood. It is also home to the UK’s answer to Silicon Valley: The Silicon Roundabout.

In yesterday’s networking I managed to drop by at both the tech and creative side of the Silicon Roundabout. At TechHub the Roundabout Brewery was launching and nearby the club Cargo played host to Glug London, a bi-monthly gathering of agencies and creative folk.

Glug was a blast, as always. Where else would you meet freelance flash artists, founders, managers and account directors of various digital agencies that work with global brands – and a comic artist? Since I was killing two birds with one stone I arrived a few minutes late. And my tip for future Glug visitors: Don’t do that. The vault where the talks take place was packed and I couldn’t get in. Which did leave more time to meet people in Cargo’s excellent beer garden.

Sampling the Roundabout Brewery products at TechHub

The Roundabout Brewery Launch at TechHub was also very good. Apart from the always interesting mix of entrepreneurs there were also some excellent samples to be had of the Roundabout Brewery beer, complete with the opportunity to provide user feedback.

One evening, two events, lots of interesting people and no one I know got mugged. All in all, another successful networking evening in the Silicon Roundabout.

More than four years after launching, Open Coffee is still going strong

Today at the farmer's market in Bloomsbury, next to the Open Coffee venue

Every week in the heart of Bloomsbury, London, entrepreneurs, investors, techies and other like minded people meet up at a café in the UCL University campus and brainstorm. Most of them have never met before. Some are looking for feedback on their ideas, some are looking for potential business partners or co-founders and some are doing market research. Everyone is trying to make new connections.

They’ve shown up for Open Coffee.

Open Coffee was started in early 2007 by Saul Klein of renowned VC firm Index Ventures.  After being covered by Channel 4 News it exploded. Every week dozens of people would show up, looking to fund their startup, invest in a startup or find an already funded startup to work for.

What’s remarkable isn’t the above sequence of events. What’s remarkable is that Open Coffee became self-sustainable. In 2007 every other person would ask you: “Where’s Saul Klein? My startup is the next MySql!” Today, people ask: “What are you up to? How can we help each other?”

I haven’t been to a single Open Coffee event yet that hasn’t resulted in new, useful connections. Today was no different. I met people from startups such as vouchAR, a technologist from the Technology Strategy Board and many others. Walking out into the sunshine and heading for the Farmer’s Market, which is right next to the Open Coffee venue, I decided I would have to incorporate going to Open Coffee into my routine. After running every week for four years – it still really is that useful.