#76 Lars Stenlund on Driven by Curiosity
Investing by the Books
Funding acquisitions: cash flow, leverage, and opportunistic equity
Eddie asks about funding; Lars discusses growing from cash flow, using leverage, and opportunistic equity raises when math allows.
Lars Stenlund co-founded the Swedish firm Vitec Software in 1985. For 35 years, he served as its CEO, and since 2021, he is the Chairman. In this interview, Lars shares his lessons and personal reflections from the journey with Vitec. The basis for our conversation is the book “Driven by Curiosity: Vitec – The First 40 Years”, published in 2025.
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Our conversation with Lars Stenlund was recorded on 10 September 2025.
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Episode Chapters
(00:00) Intro by Eddie
(01:18) Welcoming Lars Stenlund
(01:41) Growing up and role models
(04:05) Study decisions
(04:46) About the book “Driven by Curiosity”
(08:05) The early days of Vitec
(14:29) Organic growth journey
(16:16) IPO, failing in Germany, and starting with M&A
(17:58) Competitive situation for acquisitions
(19:03) SaaS in 1995
(21:15) Earnings stability vs. volatility
(22:25) How to measure success
(24:09) People and decentralization
(26:48) Acquisitions in practice
(27:32) Funding
(29:59) Geographic expansion
(30:53) Mistake 1: don’t kill a working software
(33:42) Mistake 2: avoid creating a monopoly
(35:34) The worst advice Lars ever got
(36:07) Transition from CEO to Chairman
(37:19) Selecting his successor
(38:19) Avoiding group thinking in the board
(40:13) Current commitments besides Vitec
(41:48) Umeå’s importance for Vitec and vice versa
(44:25) Golfing and the relation with Olov, co-founder of Vitec
(46:05) Spending habits
(47:25) Lessons from decades of technology shifts
(51:22) Time horizon on product development
(53:12) Curiosity today
(54:13) Reading recommendations and one title to avoid
(57:52) Concluding remarks
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Books Mentioned
- Driven by Curiosity – Patrick Syrén
- The Wisdom of Crowds – James Surowiecki
- Good to Great – Jim Collins
- Marionetterna [in Swedish] – Ingrid Carlberg
- Lord of the Flies – William Golding
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Companies Mentioned
- Boliden
- Vitec Software
- Knowit
- Constellation Software
- IBM
- Microsoft
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More on Lars Stenlund & Vitec Software:
- Company Website: https://www.vitecsoftware.com/en/
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About the Podcast
Intro episode: https://www.redeye.se/podcast/investing-by-the-books/817383/0-intro-to-investing-by-the-books
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What is Investing by the Books?
Investing by the Books was founded by Henrik Andersson, Bo Börtemark, Mats Larsson and Michael Persson. It has published hundreds of book reviews in the past 10 years and operates on a non-profit basis.
Visit the website: http://www.investingbythebooks.com/
Follow on Twitter/X: https://twitter.com/Investbythebook
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What is Redeye?
Redeye is a research-centered boutique investment bank from Stockholm. Founded in 1999, Redeye cultivates investors through timeless knowledge, a humble attitude, and a strong focus on quality.
Visit the website: https://www.redeye.se/
Follow on Twitter/X: https://twitter.com/Redeye_
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Disclaimer
Notice that the content in this podcast is not, and shall not be construed as investment advice. This information is meant to be informative and for general purposes only. For full disclaimer, visit Redeye.se
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