Can Björk Save a Ruined Iceland?
Björk, the quirky Icelandic singer, is investing her very emotions in a fund for startups, in the hopes of turning her near-bankrupt country into a green paradise. Sort of!
Iceland got in trouble when its banks started offering Crazy-Eddie interest rates to British savers online. When the Brits started worrying about the safety of their money, they staged a run. Unfortunately, not a particularly photogenic one, since it all happened over the Internet!
But Björk, with her pixie looks and penchant for kooky swan dresses, is photogenic. So she may be able to save Iceland by putting a pretty face on the whole affair.
She's not putting much actual money in, actual money being scarce in Iceland. Audur Capital, a venture-capital firm, is raising a new fund named Bjork worth 100 million Icelandic kronur from the singer and the Audur's other investors. That sounds like a lot of money, until you realize that 100 million Icelandic kronur is only $816,330.
How six figures is supposed to bankroll all sorts of new businesses which will replace Iceland's current economy, which is based on Björk, aluminum smelters, and now-defunct online banks, with a panoply of environmentally friendly profit machines, is not explained. But Halla Tomasdottir and Kristin Petursdottir, who have those awesome Icelandic patronyms, say that Björk will offer startups they invest in "emotional capital." Couldn't they get the same benefit by just playing her CDs nonstop?
Oh, also: Petursdottir was the CEO of a British subsidiary of Kaupthing, one of the Icelandic banks which went bankrupt in the whole economic crisis. So maybe this whole scheme isn't such a good idea after all!