Creandum’s Carl Fritjofsson on the Differences Between the Startup Ecosystem in Europe and the U.S.

Decerry Donato

Decerry Donato is a reporter at dot.LA. Prior to that, she was an editorial fellow at the company. Decerry received her bachelor's degree in literary journalism from the University of California, Irvine. She continues to write stories to inform the community about issues or events that take place in the L.A. area. On the weekends, she can be found hiking in the Angeles National forest or sifting through racks at your local thrift store.

Carl Fritjofsson
Carl Fritjofsson

On this episode of the LA Venture podcast, Creandum General Partner Carl Fritjofsson talks about his venture journey, why Generative-AI represents an opportunity to rethink products from the ground up, and why Q4 2023 and Q1 2024 could be "pretty bloody" for startups.


Creandum is a European VC firm that invests in early stage startups — typically at the “late Seed to Series A” stage. The firm’s investments are focused across six major buckets: fintech, health, climate, SaaS, infrastructure and consumer internet.

Some of Creandum’s most prominent investments include Spotify, Klarna, and Trade Republic.

“We started to build our own confidence that what we were doing was actually pretty good,” Fritjoffson said. “I think we've come now to a position where we've seen enough high quality companies throughout the years, we know what good looks like and we've also seen the best of the best firms have invested in some of our companies and we've sat along boards with them, so we come to learn from them as well.”

Working in the VC industry for the last decade, Fritjofsson has developed a unique approach to identifying opportunities for startups. His approach starts with recognizing that there are only so many types of large software categories that exist in the world (CRM, ERP, and Cloud Computing, to name a few)

“Each one of them are, to some extent, reinvented every X number of years. The reason why they are being reinvented is because the underlying core infrastructure has innovated” and the “winners of the last cohort…do not innovate as fast as the market expects” he said.

Fritjofsson thus spends a majority of his time waiting for significant inflection points- those moments when new technology comes along that fundamentally changes an individual’s experience interacting with a software product or service.

Take Generative AI for example. Fritjofsson believes that recent innovations represent a “horizontal wave” that impacts each of the six investment buckets mentioned above. He further believes that AI changes how we “engage and interface with software”, which necessitates fundamentally rethinking the way companies service a market

As Fritjofsson puts it, “I actually think that more or less every software category can be rewritten with a Generative AI-first approach. Now the question is, of course…how much better does that experience become?...I'm not necessarily convinced that it'll…disrupt every software category in the world, but I can at least build excitement around the potential.” Where there’s an inflection point, there’s opportunity.

Despite the present opportunity with AI, Fritjofsson described a bleaker outlook for the cohort of startups that raised their last round of financing in 2021.

Fritjofsson believes that “Q4, Q1 is gonna be pretty bloody.” He reasons that many startups cut costs in Q1’23 and Q2’23 to avoid coming to market when investor sentiment was negative. While these startups may have prolonged their runway, they likely did so at the expense of growth, which new investors will not like. As Fritjofsson puts it, Q4 ‘23 and Q1’24 will “be the moment of truth…where there's gonna be a lot of bodies in the wake because a lot of firms have slowed down.”

Given his experience as a founder and now a VC, Fritjofsson advises younger folks to veer away from entering the world of venture too early.

“I think there's a really dangerous path when you get stuck in venture too early in your career,” he said. “Because it's very hard to climb the ranks in a venture firm. Most venture firms are small and it's not a super clear path on how you become a partner.”

While he’s content in his own role, he cautions others who view a junior role at a VC firm as a stepping stone to an operating role inside an organization. The skill set, while valuable, is not necessarily transferable.

Finally, Fritjofsson shared the similarity he sees between the startup ecosystems in Europe and Los Angeles.

Homegrown success stories like Spotify helped Europe, as a startup ecosystem, “build confidence and trust their own intuition.”

In Fritjofsson’s view, LA is similar in that respect. It is significantly smaller than Silicon Valley, which simultaneously creates “a little bit of…insecurity” but also a willingness to “prove ourselves.”

While Creandum and the team are constantly evolving, Fritjofsson has experienced various instances where the team won competitive deals by “thinking outside the box.”

One example he points to was a time when Creandum was looking to win over Better Stack, a company in the observability space and said the firm was up against big names in the U.S. and Europe.

One of their products is a monitoring solution. Fritjofsson said Creandum created a sub page on the firm’s website, which looked like they were using the company’s product.

“We were building our conviction for the company,” he said. “Obviously the founder loved this. No one else did this. This was unique to him and he will remember it for the rest of his life, and we ended up winning the deal. I'm not sure if we won it because of that, but it definitely played to our advantage.”

dot.LA Reporter Decerry Donato contributed to this post.

Click the link above to hear the full episode, and subscribe to LA Venture on Apple Podcasts, Stitcher, Spotify or wherever you get your podcasts.

This podcast is produced by L.A. Venture. The views and opinions expressed in the show are those of the speakers and do not necessarily reflect those of dot.LA or its newsroom.

Billion-Dollar Milestones and Snapchat’s New Features

🔦 Spotlight

Happy Friday Los Angeles!

This week’s spotlight showcases LA’s thriving tech scene, featuring Snapchat’s latest feature updates and two local startups Liquid Death and Altruist, making TechCrunch’s Unicorn List for 2024.

Image Source: Snap

Snapchat’s recent fall updates bring fresh features, including a new iPhone camera shortcut for instant snaps, Halloween-inspired AI-powered Lenses, and Bitmoji costumes inspired by Mean Girls and Yellowstone. Bitmoji stickers now reflect trending Gen-Z expressions like “slay” and heart symbols for added flair in chats. Plus, the “Footsteps” feature on Snap Map allows users to track their past adventures privately, adding a nostalgic touch.

Image Source: Liquid Death

ICYMI, two LA startups joined the Unicorn Club—achieving valuations over $1 billion. Liquid Death, based in Santa Monica, is a canned water company with edgy branding and a humorous sustainability focus. Known for viral marketing and brand partnerships, it redefines bottled water as a lifestyle brand and environmental statement. In March, Liquid Death closed $67 million in strategic financing, raising its total funding to over $267 million and valuing it at $1.4 billion.

Image Source: Altruist

Altruist, a Culver City-based fintech platform, offers financial advisors streamlined tools to better serve their clients. With a user-friendly investment and account management platform, Altruist has gained strong traction in the finance world. In May, it announced a $169 million Series E funding round, bringing its total funding to over $449 million and earning a valuation of $1.5 billion.

Together, Liquid Death and Altruist exemplify LA’s capacity for innovation across diverse sectors, from lifestyle branding to fintech. Whether reshaping financial tools or redefining sustainable branding, these companies showcase LA’s unique entrepreneurial spirit. Go LA!

Check out TechCrunch’s 2024 Unicorn List here. And don’t miss Snapchat’s latest features—perfect for adding some fun, connection and maybe a few selfies this weekend!


🤝 Venture Deals

LA Companies

  • Freeform, a company bringing AI to metal 3D printing, raised $14M in funding from NVIDIA’s NVentures and AE Ventures to further develop its AI-powered 3D printing technology for industrial-scale production. - learn more
LA Venture Funds
  • Anthos Capital participated in a $70M Series D round for Carbon Robotics, which develops AI-powered robotics for precision agriculture, and the funding will be used to accelerate the growth of its autonomous weeding technology. - learn more
  • Anthos Capital participated in a $3.5M seed round for Plasma Network, aimed at expanding access to USDT stablecoins on the Bitcoin network, with the investment supporting the network’s growth and efforts to enhance stablecoin accessibility through the Lightning Network. - learn more

LA Exits


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      ⚖️FTC’s "Click to Cancel" Rule and Its Ripple Effect on Tech

      🔦 Spotlight

      Happy Friday Los Angeles,

      The FTC’s new “Click to Cancel” rule is shaking up subscription-based tech. Now, instead of navigating a maze of cancellation hurdles, users can cancel subscriptions as easily as they signed up—with a single click. This shift is a wake-up call for SaaS, streaming, and app-based companies, where once-hidden exit options often kept users around simply because canceling was a hassle.

      The rule also requires businesses to send regular renewal reminders, ensuring customers stay informed about upcoming charges. It's more than a cancellation button—it’s about transparency and giving users control over their decisions.

      For startups, the impact goes deeper than UX adjustments. Many have relied on "dark patterns," which subtly discourage cancellations by hiding the exit. Now, companies must shift toward building genuine loyalty by delivering real value, not by complicating exits.

      While this might affect retention rates initially, it could lead to more sustainable business models that rely on satisfaction-driven loyalty. Investors may start prioritizing companies that emphasize transparent, long-term engagement over those that depend on dark patterns to maintain retention metrics.

      The rule opens the door to more ethical UX design and a truly user-centered approach across the tech industry. It may even set a precedent against manipulative design in other areas, such as privacy settings or payment methods.

      Ultimately, the “Click to Cancel” rule presents an opportunity for the tech industry to foster trust and build stronger customer relationships. Startups and established companies that embrace transparency will likely stand out as leaders in a new era of customer-centric tech, where trust—not tricky design—is what retains users.

      As the tech landscape continues to evolve, LA Tech Week 2024 offers a chance to explore these shifts in real-time. Check out the upcoming event lineups to stay informed and make the most of your time:

      For updates or more event information, visit the official Tech Week calendar.


      🤝 Venture Deals

      LA Companies

      • Ghost, a company supporting top brands and retailers with streamlined logistics and fulfillment solutions, raised a $40M Series C funding round led by L Catterton to fuel its continued growth and innovation. - learn more

      LA Venture Funds
      • Assembly Ventures participated in a $27M Series A round for Monogoto, a provider of software-defined connectivity solutions that enable secure, cloud-based IoT and cellular network management on a global scale. - learn more
      • Angeleno Group participated in a $32M Series C round for REsurety, a company that recently launched an innovative clean energy marketplace aimed at providing better financial and operational insights to support renewable energy transactions. - learn more

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        🌴🧑‍💻 Your Guide to LA Tech Week 2024

        🔦 Spotlight

        Happy Friday Los Angeles,

        As many of you know, LA Tech Week is right around the corner, kicking off next Monday October 14th bringing together founders, creatives, investors, and engineers for a week of immersive events, panels, and socials across the city. From blockchain and AI to biotech and design, LA Tech Week is a chance to dive into the ideas shaping today’s technology landscape.


        What to Look Forward To

        Insights from Visionary Leaders: Hear firsthand from industry trailblazers as they share stories, challenges, and key lessons from their experiences. Expect fresh perspectives on AI, venture capital, biotech, and the ethical questions around emerging technologies.

        Interactive Panels: This week isn’t about watching from the sidelines; it’s about engaging directly with the tech community. Participate in hands-on panels discussing everything from startup scaling to ethical AI, with honest insights from those actively shaping these fields.

        Networking Mixers & Social Events: Meet and connect with founders, VCs, developers, designers, and fellow techies across LA. Rooftop mixers, lunch meetups, and creative gatherings offer the perfect chance to spark ideas and collaborate.

        Plan your week with the daily lineup, organized by location for easy navigation:

        For updates or more event information, visit the official Tech Week calendar.

        Enjoy LA Tech Week 2024!!


        🤝 Venture Deals

        LA Companies

        • Clout Kitchen, a Los Angeles and Manila based startup, has raised $4.45M in seed funding, co-led by a16z SPEEDRUN and Peak XV’s Surge, to develop AI-powered digital twins, which enables gaming creators to produce realistic virtual avatars for content and fan engagement. - learn more
        • MeWe, a privacy-focused social media platform, has raised an initial $6M in Series B funding led by McCourt Global to support Web3 integration and expand its decentralized network for 20 millions users. - learn more

          LA Venture Funds
          • EGB Capital participated in a $10M Series A funding round for MiLaboratories, which develops software that enables biologists to independently analyze complex genomic data, accelerating research and discovery in fields like drug development. - learn more
          • Crosscut Ventures participated in the $13.75M seed round for Airloom Energy, a company focused on developing airborne wind energy technology to harness high-altitude winds, with plans to accelerate a pilot project in Wyoming. - learn more
          • Overture VC participated in a $5.5M Seed funding round for Molg Inc., a company developing robotics and software for circular manufacturing, designed to disassemble electronics efficiently and recover valuable materials to reduce e-waste and support sustainable production. - learn more


            LA Exits

            • Options MD, a Los Angeles based telemedicine platform that provides care for people suffering from severe and treatment-resistant mental illness, is set to be acquired by Resilience Lab, an AI-driven provider focused on enhancing mental health care access. - learn more

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