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For Peter Bonnén and Kristian Byrge, founding a company was not only a long-held dream, it was also an opportunity to be ‘at the other side of the table’, as they had both worked with business consultancy, strategy and branding in their previous jobs for major Danish companies, including TDC and Carlsberg.

After months of talks and the development of a business draft, they agreed it was time to take the plunge, and in 2006 they both quit their jobs to launch ‘Muuto’.

Their goal for Muuto was to seize the position as the only design-based company exclusively based on new Nordic design. Muuto was to represent the best up–and–coming young designers from Denmark, Sweden, Norway and Finland. With the slogan ‘New Nordic’ they dedicated their brand to the common Scandinavian quality. This was a business idea that was absent from the market, as most companies represented a mix of older and newer design products.

Director Kristian Byrge comments: “In terms of marketing, it is difficult to stay true to the universe of the new designers, if at the same time you are trying to sell an Arne Jacobsen design. That’s easier for us, as we don’t carry the old designs. The new generation of designers, they all bring strong personalities and creativity into the process, and that makes for products with character. We are convinced that they are the ones who can pick up the baton from the old designers. We believe the time is right – that this is the generation that’s going to take over.”

From the outset, Muuto had international ambitions; the design products were not just aimed at the Nordic markets but should be available in leading design stores around the world. The vision was equally ambitious – Muuto was to help Scandinavian design regain the lead position it held in the golden age of the 1950’s and 60’s.

The business strategy
Kristian Byrge explains: “The first thing we did was draw up a five-year business plan. That took us three months, but then we had a 70-page business plan that defined our goals and objectives – including everything from the choice of designers to quality criteria for the factories and the choice of logo. That takes time, but we were determined to do it properly.”

Selecting designers
Based on their business plan and vision for Muuto, Peter Bonnén and Kristian Byrge began to approach designers – a crucial process, which proved to be easier than they had dared to hope.

“We asked around in the design business, talked with professors and designers, kept an eye on designers who were winning awards abroad, and visited trade fairs and exhibitions. Eventually, we had a list of 20-25 young Nordic designers, whom we considered promising. We contacted the ten that we were most keen to work with – and they all accepted!”

Status after two years
After a little less than two years, Muuto’s staff has expanded to eight. “We’re happy that we have been able to attract good employees,” says Kristian Byrge, adding: “It’s crucial for our future success to have qualified people on our team.”
Muuto’s design products are exported to 15 countries, and in early 2008, the export list grew to include Australia, Japan and the USA, among others.

As for future goals, Kristian Byrge says, “Our financial goal is to match some of the biggest Scandinavian players in our field and preferably be among the top three. In terms of design, our goal is to make Muuto the leading Scandinavian design brand in our product categories in the minds of both consumers and designers.”

Choice of financial partner – Vækstfonden
From the outset, Kristian Byrge and Peter Bonnén wanted to include an investor, as their business goals demanded an injection of additional capital. Around the time that Muuto was founded, the Danish venture capital fund Vækstfonden released an analysis of the growth potential in the design business, which showed positive perspectives. Thus, Vækstfonden was an obvious possibility, although Muuto also talked to other potential investors before reaching a decision.

“The negotiations were tough. It’s a real killer – it’s a lengthy process, and at times you simply don’t know where you stand. It was important for us to be able to rely on our investor. We know exactly what Vækstfonden demands of us, but we also know exactly what we get in return. This transparency is essential, and consequently, we have a very extensive, 50-page contract. We had a lawyer involved in drawing it up, so that we knew exactly where the process was going.”

Vækstfonden has invested just under 10 million kroner in Muuto, but Kristian Byrge and Peter Bonnén still hold a controlling share.

Vækstfonden is a government-funded finance company and a part of the Danish business promotion system. Vækstfonden’s mission is to promote development and renewal in the Danish business sector by financing promising projects in small and medium-sized enterprises. The ultimate goal is to help Denmark build the most efficient market for innovation financing in Europe. In 2007, Vækstfonden had a capital base of 2.1 billion Danish kroner.