Isabella Palmgren: "It's hard - but it can be done"

Isabella Palmgren, Founder Mimbly

This is part of Sweden Startup Nation's interview series with startup founders and investors, which aims to highlight systemic failures and give voice to startup actors' experiences as a knowledge base for future decisions.

Mimbly has grown from a student project to an international cleantech player with concrete results in both water savings and microplastic reduction. The company has developed the Mimbox - a device that connects to commercial washing machines and makes it possible to reuse up to 70% of water, reduce energy consumption and capture microplastics before they reach our oceans. Founder Isabella Palmgren shows how Swedish innovation can create global impact, but also how difficult it is to build hardware companies in Sweden.

"We wanted to solve a real problem, for real. It started with the question: are we using clean water wisely? The answer was no - especially not in laundry," says Isabella Palmgren.

Mimbly's first year was characterized by competitions, pilot projects and testing. The road to market was long, but in 2023 the product was launched. Today, the Mimbox is available in several European countries and has saved over 3.7 million liters of water.

But the road there has been anything but easy.

"It's very new. As first-time contractors, we had to learn while building a complex product with both hardware and software."

Building a hardware company from scratch requires not only capital, skills and patience - it also requires the ability to navigate a world where conditions are constantly changing.

"It often takes longer than you want, and it usually costs more than you want. And there is always something new happening in the world. When you think that now, now it will be calm, then comes the next challenge. There is a lot of uncertainty to deal with," says Isabella Palmgren.

For Mimbly, the journey has involved everything from component shortages to pandemic effects and war in Europe. But it has also been a learning process, a constant balancing act between having visions and adapting to reality.

Capital was a struggle - especially as a young female founder

Mimbly has both raised venture capital and used soft money. According to Isabella, it has been crucial to work in parallel at all times: investor money is matched with grants, competition wins and scholarships.

"We have really had to be creative. Every dime we've gotten from an investor we've managed to double in other ways."

Raising capital is difficult for everyone, but some companies have it harder than others. Isabella points to four risk factors that are often weighed in by investors: hardware, female founders, no previous exit and foreign background.

"We tick all those boxes, which gives us a harder starting point than others. But it has also given us visibility. You have to try to adapt to what it actually looks like and hope it changes over time."

She calls for greater transparency and fairness in capital flows and, above all, a broadening of the types of companies that receive support.

"A lot of capital has gone to software companies. There is an imbalance where we risk missing a lot of industrial potential."

Strong public support - but slow processes

Mimbly has benefited from both regional and national innovation support. The Västra Götaland region's innovation loan, Almi's green loan and EU support from EIC have played a major role. In particular, the EIC Accelerator grant was crucial in taking the step from prototype to production.

But Isabella wants more flexibility - and faster processes.

"Some calls you apply for a year before you get a decision. By then, the business has often already changed, but you are not always allowed to update your application. It's not very entrepreneurial. At the same time, you have to get help because some applications are so complex"

She also mentions that many grants are focused on larger consortia or academic projects, rather than practical product development in small companies. This means that some actors, like Mimbly, fall through the cracks.

"There is a lot of support available - but it is often very difficult to find the right one. It should be easier to find your way in, especially for new entrepreneurs."

Pilot project opening doors

One example of what worked is Ignite Sweden. Through their matchmaking, Mimbly got its first customer, Coor, and a ready-made pilot agreement.

"Getting the first big customer is an important step. The fact that there was a ready-made contract meant that we could start right away. That makes a real difference."

Isabella would like to see more initiatives of this kind, such as small pilot funds where startups and customers share the cost.

What would have made a difference?

When asked what would have made the biggest difference to Mimbly's growth, Isabella answers without hesitation:

"Faster processes and better access to early capital. Family offices, angels - especially Nordic and international. It's hard to find them if you don't know how."

She also calls for more experienced entrepreneurs in the innovation system, people who have actually run companies before.

"Many of those who have made the journey are starting funds - but they would also have been needed inside the innovation system, as coaches or decision-makers. Both from software, hardware and industrial companies"

Looking to the future: Hardware is crucial

Despite the challenges, Isabella is optimistic. She believes hardware will see a boost in the future, especially in cleantech.

"The climate crisis cannot be solved with software optimizations alone. We need new technologies that actually change how we use resources for real."

"The planet will be fine, but will we?"

After a few tough years for Swedish cleantech, where even ambitious companies have gone under despite great efforts, Isabella Palmgren believes it is more important than ever to continue investing. She believes that hardware will get a boost in the future, especially in cleantech. 

She sees a worrying trend where many countries are still in denial about climate change. But the reality can no longer be ignored.

"Every year we see more and more disasters. It is not the planet that is in danger, but we humans who risk not being able to live on it."

Isabella highlights Sweden's potential to become a pioneer in cleantech. Success requires both courage and a willingness to prioritize correctly.

"If we want our children and grandchildren to have a future, we need to act now. I sincerely hope that we will see more thoughtful investment in innovation and sustainable solutions in the coming years. Now is the time to act."

Sweden Startup Nation - a necessary voice

Isabella sees Sweden Startup Nation as an important counterforce to a system where startups are often at a disadvantage in relation to investors, partners and bureaucracy.

"We need an actor who dares to highlight what is not working. Who listens to startups and drives change. And who creates a safe space where you can be transparent about what works and what doesn't."

Her advice to Swedish policymakers?

"Invest in new companies that can adapt. They are the ones who will drive the change. But we have to help them survive until they get the chance to do so."