Investing by the Books

chevron_right

#76 Lars Stenlund on Driven by Curiosity

whatshot 12 snips

Oct 21, 2025

Guest

Lars Stenlund

Lars Stenlund, co-founder of Vitec Software and former CEO, shares insights from the company’s 40-year journey. He discusses the importance of curiosity as a driving force behind Vitec's success. Key topics include lessons learned from acquisitions, managing earnings volatility, and the pitfalls of discontinuing successful software. Lars also reflects on leadership transitions and the need for diverse board dynamics. Plus, he highlights the relevance of AI in enhancing operational efficiency and his enduring interest in popular science.

59:04

forum

Ask episode

web_stories

AI Snips

view_agenda

Chapters

menu_book

Books

auto_awesome

Transcript

info_circle

Episode notes

question_answer

ANECDOTE

Hobby Project Became A Company

Lars Stenlund and co-founder Olov started Vitec as a hobby while Lars finished his PhD and coded on a shared PC every second week.
Their first product targeted energy monitoring for property owners and development happened during nights and weekends.

insights

INSIGHT

Resource Constraints Can Create Advantages

Scarce resources sometimes force choices that create long-term advantages, like adopting Excel/Windows over expensive alternatives.
That early platform decision put Vitec years ahead of competitors.

question_answer

ANECDOTE

Failure In Germany Led To M&A Growth

A failed German expansion after Vitec's IPO forced the company to pursue acquisitions as a Plan B.
They used IPO funds to buy complementary niche vendors and quadrupled company size in 18 months.

Get the Snipd Podcast app to discover more snips from this episode

Early life, role models, and study choices

01:18 • 4min

chevron_right

How the book Driven by Curiosity came about

04:53 • 2min

chevron_right

Curiosity as a founding motivation

07:17 • 54sec

chevron_right

Founding Vitec and the first product idea

08:10 • 2min

chevron_right

The early 'dark ages' and funding constraints

10:28 • 3min

chevron_right

Why they kept building rather than exiting

13:30 • 1min

chevron_right

Organic growth, tech choices, and lucky turns

14:41 • 1min

chevron_right

IPO, German failure and the start of M&A

15:47 • 2min

chevron_right

Being early acquirers in vertical software

17:58 • 1min

chevron_right

Early SaaS thinking and subscription pricing

19:02 • 2min

chevron_right

Managing earnings volatility with mixed business models

21:15 • 1min

chevron_right

Key KPIs: recurring revenue and labor efficiency

22:25 • 2min

chevron_right

Motivating people and preserving decentralization

24:16 • 3min

chevron_right

How Vitec runs M&A at scale

26:53 • 39sec

chevron_right

Funding acquisitions: cash flow, leverage, and opportunistic equity

27:32 • 2min

chevron_right

Long runway for niche vertical software expansion

29:26 • 2min

chevron_right

Mistake: never kill working software without seamless migration

31:00 • 3min

chevron_right

Mistake: creating monopolies can spur customers to build competitors

33:31 • 2min

chevron_right

Worst advice received and ignoring it

35:33 • 40sec

chevron_right

Transition from CEO to chairman and selecting a successor

36:14 • 2min

chevron_right

Avoiding groupthink through diverse boards and early discussion

38:20 • 2min

chevron_right

Other commitments and supporting local startups

40:14 • 2min

chevron_right

Why Umeå remains strategic for Vitec

41:57 • 2min

chevron_right

Community engagement and occasional keynotes

44:20 • 17sec

chevron_right

Golf, co-founder relationship, and personal interactions

44:37 • 1min

chevron_right

Personal spending habits after success

45:51 • 2min

chevron_right

Lessons from technology shifts and timing adoption

47:37 • 1min

chevron_right

AI adoption and practical uses at Vitec

49:01 • 3min

chevron_right

Longevity of software and core business logic

51:42 • 2min

chevron_right

What currently drives Lars's curiosity

53:23 • 57sec

chevron_right

Reading habits and book recommendations

54:20 • 2min

chevron_right

A book to avoid and his critical reading approach

56:47 • 1min

chevron_right

How listeners can follow Vitec and annual meeting invite

• Mentioned in 292 episodes

Good to Great

Why Some Companies Make the Leap... and Others Don't

Jim Collins

In 'Good to Great,' Jim Collins and his research team investigate why some companies achieve long-term greatness while others do not. The book identifies key concepts such as Level 5 Leadership, the Hedgehog Concept, a Culture of Discipline, and the Flywheel Effect. These principles are derived from a comprehensive study comparing companies that made the leap to greatness with those that did not. The research highlights that greatness is not primarily a function of circumstance but rather a result of conscious choice and discipline. The book provides practical insights and case studies to help businesses and leaders understand and apply these principles to achieve sustained greatness.

#1334

• Mentioned in 22 episodes

The Wisdom of Crowds

Joe Abercrombie

In this conclusion to the Age of Madness trilogy, Joe Abercrombie depicts a world in the midst of the Great Change, where the Breakers and Burners have seized power, and the old order is being torn down. The story follows characters like Citizen Brock, Citizeness Savine, King Orso, and Rikke as they navigate the chaos, destruction, and political upheaval. The book explores themes of governance, survival, and the complexities of human behavior during times of revolution and societal collapse. Known for his vivid characterizations, dark humor, and intense action sequences, Abercrombie delivers a morally complex and gripping conclusion to the trilogy.

#25861

Driven by Curiosity

Vitec – The First 40 Years

Patrik Syrén

Driven by Curiosity chronicles the 40-year journey of Vitek Software from its humble beginnings at Umeå University to its rise as a leading company in vertical software solutions. Authored by Patrik Syrén, the book delves into the company's history, documenting key milestones, challenges, and innovations that shaped its growth. It highlights the importance of curiosity as a driving force behind Vitek's success, showcasing how a passion for exploration and learning fueled its evolution. The book features extensive photos and documents, offering a detailed look at the people, decisions, and events that defined Vitek's trajectory. It aims to inspire current and future employees by illustrating the power of curiosity in navigating the ever-changing landscape of the software industry.

#53919

Marionetterna

Ingrid Carlberg

Ingrid Carlberg's 'Marionetterna' delves into the history of fake news, tracing its origins back to the Soviet Revolution and exploring its evolution over time. The book examines how misinformation and propaganda have been used to manipulate public opinion and shape world views. Carlberg analyzes various historical events and case studies to illustrate the techniques and strategies employed in spreading false information. She highlights the impact of fake news on political discourse, social movements, and international relations. 'Marionetterna' also explores the role of media and technology in the dissemination of misinformation, as well as the challenges of combating its spread in the digital age. The book offers a comprehensive and insightful account of the phenomenon of fake news, providing valuable context for understanding its contemporary manifestations.

#482

• Mentioned in 45 episodes

Lord of the Flies

William Golding

In 'Lord of the Flies', William Golding tells the story of a group of British schoolboys who are stranded on a deserted island after their plane crashes. The novel follows their attempts to govern themselves and the gradual descent into chaos and savagery. The story is an allegory that explores themes of human nature, morality, leadership, and the fragility of civilization. Key characters include Ralph, who represents order and democracy; Jack, who symbolizes power and violence; and Piggy, the voice of reason. The novel highlights the tension between the desire for civilization and the primal savagery that lies beneath the surface of human society.

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.

—————————————

Our conversation with Lars Stenlund was recorded on 10 September 2025.

—————————————

For more info about the podcast, make sure to follow us on X/Twitter. We love to hear your thoughts, so please rate and review us. And feel free to tell us about great authors, books, and investors. Thank you. /Eddie with team

—————————————

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

—————————————

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

—————————————

Companies Mentioned

Boliden
Vitec Software
Knowit
Constellation Software
IBM
Microsoft

—————————————

More on Lars Stenlund & Vitec Software:

Company Website: https://www.vitecsoftware.com/en/

—————————————

About the Podcast

Intro episode: https://www.redeye.se/podcast/investing-by-the-books/817383/0-intro-to-investing-by-the-books

—————————————

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

—————————————

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_

—————————————

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

Home Top podcasts Popular guests Top books