Karolina Fund

Interview: Karolina Fund

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Karolina FundInterview date: 13 June 2014

Interviewed by: Tanja and Frantisek



Karolina Fund Year 1

The story:

“We were a group of guys and girls in post- crash Iceland from diverse backgrounds, from filmmaking, innovation, finance and programming who liked making things happen. We wanted to create a platform and community that would use the web and social media to connect people with ideas with money, skills and resources to make it come to life. Here’s a recent blog post I wrote about how it all came about and where it’s going: Where is Karolina Going?


Research Questionnaire

1. Name: Arnar Sigurðsson

2. Email address: arnarfjodur [at] gmail.com

3. Phone number: +345 848 0787

4. Your title in the company: Co-Founder

5. Company Name: Karolina Fund / www.karonlinafund.com / Kt. 460712-1570

6. Industry: Crowd funding and crowd sourcing platform.

7. Company years in operation: 2012

8. Type of company: Private Limited companies (“Einkahlutafélag” (ehf)

9. How many employees does your company have:

½ employee is paid salaries, but 5-10 people contributing

10. Annual turnover:

To date: 5% of pledges. Total pledges Eur222,116, therefore Eur11,105.80 (est. 1.2M ISK) income, with around 70% of the projects getting funding.

11. Description of company:

To help people collaborate on creative projects through providing them with a way to access funding, talent and ideas.

12. Company Mission:

Karolina Fund aims to become a next generation crowd sourcing and crowd funding community. Our mission is to connect ideas, funds and talent to make creative projects possible that individuals can’t do alone.

13. Description of social / environmental mission:

As per 12.

To create social impact through creating change by facilitating new relationships between the creators and investors.

14. Would you call yourself a social entrepreneur or social enterprise?

Yes, but we are new to the concept and have not thought much about it.

15. How do you interpret the concept of social enterprises?

Could be seen as 2 definitions:

1)    Social, as in social media, therefore a company that connects people OR

2)    An organization that is driven by purpose and creates change.


Questions related to the definition

16. Does your company have a clear social and/or environmental mission set out in their governing documents?

No, only the legal description required in the founding documents submitted by their accountant.

17. Does your company generate the majority of their income through trade? (51% and above). If not, how much?

They are still in start-up phase and therefore aren’t as yet sustaining their full costs with income. Currently 90% is ‘unpaid’ work, the remaining 10% is monies received. Of the monies received 50% is from trade income and the remaining 50% is from grant income.

90%                                                        10% revenue

Unpaid work                                      Income 50:50 Grants

18. Does your company reinvest the majority of its profits back into the social and/or environmental mission? (51% and above), if not, how much?

Yes currently as they are still in start-up phase

In the future where profits are gained, the investors, 8 in total, haven’t yet discussed how profits would be distributed.

19. Is your company autonomous of state? Yes

20. Is your company majority controlled in the interests of the social and or environmental mission?

More so some individuals within the company function from a social mission.

As a company their description: “solve funding and employment problems but also connect creative people to make projects come to life”, offers the view point that these will remain as part of their ethos and commitment to their social mission.

21. Is your company accountable and transparent? (Transparency – corporate actions are observable by outsiders)

Yes, they clearly show on their front page

Projects Funded

Funding success

Number of participants

Amount received from pledges

Skills of the community

22. Who are you clients / focus group?

Artists, Investors and Entrepreneurs. This creates a dynamic environment for a project for all parties to get involved in the creative project through the crowd funding and crowd sourcing platforms.

23. What KPI’s (key performance indicators) or measurement tools, if any, do you use to access if you are meeting your social impact according to your mission? (eg. Number of users, number of engaged users. Etc.) Yes as per 21.

24. As per 23, what type of social impact have you created through your products/services (e.g. assisted 1,000 people access to health care they won’t have otherwise). Yes

For example 4457 people have been involved to date, 42 projects and Eur222,116 has been pledged.

This is just immediate impact of participation, in addition all future benefactors of the completed projects are not yet taken in to account.


Social enterprise sector

25. If a social enterprise umbrella body were formed, would you be interested to know more about it and possibly join as a member?

Yes we would want to know more about it, and possibly join if it seemed suitable to us.

26. What support do you personally need from such an umbrella body and/or what support do you think the social enterprise sector requires?

Again, the concept of social enterprise is new to us so the first support would be to understand the concept better and the benefits behind it.

27. How would you like to see social enterprise develop in Iceland? As per above.

28. Can you recommend a company (NGO) that you may know of that has a social and/or environmental mission?



Creative Center Stöðvarfjörður Iceland (inhere.is)


Note: Social Enterprise Iceland does not in any way imply that the interviewed company is a social enterprise. The definition for social enterprise in Iceland is still work in progress through these research interviews. The purpose of sharing these interviews with the public is in alignment with our values of transparency as we share our process of discovery with those who are interested.



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