When Jonas Listenius, CEO of Magstrom, walks through the company’s premises, it is clear that the company has come a long way from its early startup phase. Magstrom operates in areas including hydropower and provides innovative technology designed to reduce unplanned downtime and extend the service life of generators and large industrial motors. Today, Magstrom has 15 employees and a team that combines young talent straight from university with people who have many years of experience at major industrial companies such as ABB and Hitachi Energy.
The company’s close ties to academia are reflected in its recruitment strategy
Several employees started working part-time at Magstrom alongside their studies and stayed with the company after graduating. The team also includes experienced professionals from large corporations, which helps build credibility with customers. These customers are often large state-owned organizations, making an understanding of how large organizations operate important for building successful customer relationships.
The combination of experience and new perspectives is a deliberate part of how the company is being built. In addition to Sweden, team members come from countries including Germany, Turkey, India, Brazil, and Mexico. This international mix is also an asset for a company that has set out to be a global player from the start. Diversity is reflected not only in the range of nationalities but also in the fact that four of the company’s 15 employees are women – a positive distinction in a traditionally male-dominated sector.
Jonas Listenius’ inclusive leadership style is evident when following him through the organization. There is a sense of closeness between the CEO, engineers, and other employees, as well as a shared sense of pride in what they are building together.
Technology developed around customer needs
Magstrom’s story differs from that of many other startups rooted in university research, often referred to as deeptech companies. The innovation did not begin with a researcher looking for a market for an idea – it began with a concrete problem that industry needed help solving.
“This company was born out of the needs of industry. It was the customers who approached academia looking for help to solve a problem,” explains Jonas Listenius.
Two of those customers were Vattenfall and Fortum. They have been involved since the beginning and are now recurring Magstrom customers. At the same time, Magstrom has only scratched the surface of the Swedish market, and there is still significant potential to continue growing with both existing and new customers in its home market.
From Sweden to the global market
Magstrom is not stopping at Sweden. From the outset, the company chose to think globally and today has around 140 ongoing discussions with potential customers around the world. So far, this has resulted in installations in Switzerland and Portugal, with markets such as India, Brazil, and the US appearing to be next in line.
Expanding internationally within the hydropower sector comes with its challenges. Jonas describes an industry where change takes time and new technical solutions must prove their value.
“It takes time to change behaviors and to get customers to see the potential. Sales cycles are long. It can take several years,” says Jonas Listenius.
Over the course of Magstrom’s journey, however, the way the company approaches customers has also changed. In the beginning, the focus was on the technology and explaining what the company had developed. With experience, the perspective has increasingly shifted towards the customer.
“When we first started meeting customers, we would sit down with CAD drawings and try to explain how we could help them. Today, we show up with a blank notepad and listen to the customer’s needs,” explains Jonas Listenius.
This shift also says something about the company’s maturity. Magstrom has become more confident in its technology and products and therefore no longer needs to begin every customer meeting by proving what the technology can do. Instead, the conversation can start where Magstrom’s journey once began: with the customer’s problem.
Throughout its development, Magstrom has participated in several of UIC’s programs. The company is now entering its next phase, where a team that combines experience with young talent, strong reference customers, and technology developed around real industrial needs will be translated into further growth.