How I Learned That Some Startup Problems Are Too Big For A Minimum Viable Product

Daniel Kjellén, the COO and co-founder of Freda, shares insights gained from his experience in founding a startup that tackles the extensive challenge of compliance in the European market. After selling his previous venture, Tink to Visa for €1.8 billion in 2022, Kjellén and co-founder Fredrik Hedberg were equipped with both experience and financial resources to embark on a project with much larger ambitions.

Unlike the conventional startup journey, where the focus is on refining a concept and achieving product-market fit, Kjellén's mission is far more ambitious. He notes that compliance is inherently complex due to its dependence on a multitude of factors spread across different departments. "Solving compliance" is akin to fighting the Hydra, where cutting off one head only results in two more sprouting.

Kjellén emphasizes that a minimum viable product is not suitable for such a task; instead, a maximum viable product is required from the outset. He attributes this shift to the increased capital and access afforded by a successful exit, which in turn provides access to talent, partners, and investors that were previously unavailable.

The shift in approach is also fueled by advancements in language models, enabling his team of 22 to operate at a pace that was previously unattainable. While Kjellén acknowledges that success is never guaranteed, he believes that experience, capital, and a large team are crucial foundations for tackling ambitious and groundbreaking ventures.