The founder of a buy-now-pay-later firm has criticized the venture capital industry for focusing on growth instead of taking into account society's costs.
If they were net positive to people and the planet, there was no consideration given to Adalberth. Growth was what it was. This is how we have valued startup for a long time.
The model needs to be changed to increase the amount of financing given to companies that are measured against the goals.
Only a small percentage of assets go into impact. 16 times the capital is needed to solve theSDG
Adalberth made his name as a techentrepreneur in Sweden after he, along with friends Sebastian and Victor Jacobsson, founded Klarna. It had grown into one of the world's most successful startups. As of last month, the value of the company had plummeted to just over $6 billion.
It suffered from the effects of high inflation and rising borrowing costs. The business model that fed consumer indebtedness proved to be a turn-off for investors.
It is possible for a startup to have an outcome that is devastating to people and the planet. It can be addictive computer games, giving credit to people who cannot afford to buy the product, or creating polarization through social media.
Adalberth wanted to do something that felt more meaningful after he became rich on his stake. The Norrsken Foundation was started in 2016 after he sold down most of his holdings.
According to Adalberth, one of the aims of the nonprofit is to make sure money goes to companies that care about the environment and society. The Obama Foundation and Softbank Investment Advisers have collaborated with Norrsken to create a top 100 list of the world's most promising impact startup.
Consumers in nine countries now have the option to pay immediately at checkout after the launch of "pay now" in the US and UK. Payment fees were lowered and revolving credit facilities were removed for customers in Sweden, Norway and Finland.
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