Hinrikus, who no longer even has a key card to the new office of the company he founded, is one of Estonia's three billionaires — thanks largely to Wise, the startup that grew into a unicorn. Hailing from Tartu, Hinrikus' road to success started when he took up programming while still attending Miina Härma High School. In the early 2000s, as he started university, he was recruited to join the newly formed Skype team.

"Tallinn University of Technology has expelled me not once, but twice," Hinrikus said. "It was really just the classic case of making no academic progress. But at the time, it was much more exciting for me to go into the office and help build Skype. So gradually, making it out to Mustamäe started to fall by the wayside."

What did it actually look like? Did you really understand why this thing was needed? We didn't yet have Zoom or all these other video call apps — you were true pioneers.

Honestly, I was 20 or 21 at the time. Having grown up in the Soviet Union and not having seen much of the world, it was hard to imagine just how world-changing the thing we were building really was. I think that understanding came step by step. When we saw our first 1,000 users, then 10,000, then a million — that's when it started to sink in: damn, we're building something that's actually really, really big.

Why did Skype eventually disappear from the so-called bigger picture, and why did other apps come in and take over everything?

I think the reason is very simple. Skype missed the platform shift — from desktop computers to mobile devices. And that's when other companies emerged. Today, there are really only a handful of leaders left, mainly, I think, WhatsApp. But Skype missed that transition, and as often happens: you ride the wave once, but next time, you might not catch it.

Skype recently shut down. Have you already hit the uninstall button?

We're holding a Skype funeral right here in Tallinn next week, and I think at that funeral, we should all take out our phones and delete the Skype app. Skype actually had a very successful 22-year run. For any product, that's truly a very, very respectable lifespan.

Did you use Skype toward the end, and if so, how much and for what purpose?

I mainly used Skype to talk with my parents. And now, when I go to Tartu, I'll have to figure out an alternative I can install on my dad's desktop computer.

The beginning of Wise

The idea to create TransferWise — now known as Wise — was actually born during an old Skype conversation with Kristo Käärmann. The future billion-dollar business started from a personal need: after moving to London, Hinrikus needed to transfer money to his Estonian bank account and vice versa.

"Wise started from a very simple idea. Everyone should be able to make international transfers easily. We help individuals and businesses make international payments — something banks normally do, but they charge hefty fees and provide poor service. So we created a much simpler mobile app that lets you do everything right from your pocket. Today, Wise has over ten million customers, so it seems there were plenty of people who had the same problem," Hinrikus said.

The company, which has grown year by year and now has more than 6,000 employees, has gone through various stages of development. One of the wildest came in 2014, when the now-billionaires didn't think twice about drawing attention by posing on city streets — even in their underwear.

"We wanted to draw attention to the fact that banks are ripping you off. I think that campaign was even more successful than we expected. It was an example of how you need to think creatively, step outside the box and do things that might seem a little radical. But that's exactly what makes it cool," said Hinrikus.

At least in the public eye, you and Kristo Käärmann seemed like an inseparable tandem building Wise together. How difficult was it really to do this as a duo — two strong personalities, no doubt?

It's definitely challenging — it's like any marriage, and it can be very, very, very hard. But I think when I look at most founders, it's often the case that there are several people at the start of a company. They build it together, figure out their strengths and weaknesses and so on. It's just a natural part of the journey.

Did you at some point divide up the roles — like, you handle this, I'll handle that and we'll appear together when needed?

We've always divided things up, but we were also always able to cover each other's work when needed. I think that's been pretty natural for us.

Not afraid of investing in Estonia

The tandem of Käärmann and Hinrikus, who have frequently topped Äripäev's list of wealthiest individuals, took Wise public in 2021. Soon after, Hinrikus, who had been serving as chair of the board, announced he would step back from the company and remain only as a shareholder.

Given his wealth, one might expect Hinrikus — who is raising two children with his Italian wife, Silvia — to take a break and bask in luxury. But according to him, he doesn't even own a car in London.

"I've never had a car in London — I ride my bike, I walk, I run. And it's the same when I'm in Tallinn. My office is just nearby, and I only drive on weekends when I go to Tartu," he noted.

But that kind of lifestyle — considering your wealth — you could probably live much more luxuriously than just wearing jeans and a dress shirt, right?

To me, wealth is about having time and the freedom to engage in different exciting things.

You currently live in London. Are there any plans to move back to Estonia?

I'm in Estonia all the time. I see myself as a European. Whether we're currently living in London or Tallinn, or visiting family in Germany or Italy — for me, it's all one and the same world.

Since stepping away from Wise, Hinrikus has focused on investing through two funds he helped establish, one of which he's actively involved in.

"My main job now is building an investment firm called Plural. Plural is a venture capital fund with five partners, and we aim to invest in the most ambitious companies in Europe," he said.

How much do you invest in Estonian companies, and how large is your portfolio really?

Plural's portfolio currently includes 49 companies across nine countries, and the top two are actually the United Kingdom and Estonia. When I look at the tech sector, there's no real difference in where you invest — people are definitely willing to invest in Estonia and even along the eastern border. I do think it's a bit more complicated when we talk about other sectors. The fears are greater there.

It's inevitable that from the outside, Estonia might seem riskier. But I believe it's crucial to understand that we here in Estonia must continue to invest in Estonia. Because if we don't, it's as good as giving up.

Is the concern only about Estonia or has Europe as a whole been weakened by the war and become less competitive compared to others?

Ironically, I think Europe's competitiveness is actually increasing, especially if we look at developments over the past few months — particularly how the United States has treated its allies. I believe there's a major opportunity in Europe right now.

We're currently living in a tripolar world. On one side is the U.S., on the other is China and then everything in between. The old agreements and alliances no longer seem to hold, meaning there's both a huge opportunity and a real need for Europe to build independent industries. We need our own defense industry, our own energy, our own space industry and our own financial systems. And that, in fact, is a very big opportunity.

According to Hinrikus, Estonia should seize this opportunity — and he's working toward that goal himself. The horrors of war in Ukraine, reflected in exhibitions like the one featuring Azovstal soldiers that "Pealtnägija" covered last week, as well as a recent campaign spotted on the streets of London asking, "Have you heard of Riga, Tallinn and Vilnius? If we abandon Kyiv, you will..." have prompted Hinrikus to invest in the defense industry as well.

What does that say to you?

It speaks to the threat of war. If we don't defend Ukraine, then next it could be Poland, Latvia, Estonia or Finland. That's why we need to build up our own defense capabilities. I think we just need to think differently. Modern warfare relies heavily on technology-based tools. I believe we can effectively defend the entire eastern border if we build up our own drone army. And that's exactly the kind of thing startups are good at, especially if you look at how quickly innovation cycles happen in Ukraine.

In combat, there are solutions being built in just three months. That means the entire defense procurement system has to change — everything has to move faster. This is what the Estonian government and others need to understand: the game has changed.

We need to build an independent defense industry, and that's an enormous opportunity — for Estonia and for Europe. To be part of founding these companies and to build factories for them in Estonia, Poland, Spain and Germany.

But do you personally feel a real fear of war — that when you come to Estonia, there's a bit more worry than when you're in London?

I definitely don't feel more worried when I come to Estonia. If we're talking about fear, I think it's not about the present — it's about the future. Whether it's two, three, five or ten years from now, no one knows. But the better we prepare, the smaller that fear becomes.

How much faith do you have in politics? I looked at the latest party funding rankings. Over the past five years, you've donated around €200,000 to various parties, yet for some reason the Center Party and EKRE haven't received anything from you. What do you have against them?

Naturally, we support parties that are more aligned with the kind of world we believe in — one where Estonia is open but stable and where entrepreneurship is encouraged. Because in the end, the only thing that truly grows the economy is entrepreneurship.

So is that clearly a reflection of your worldview or is there also some element of quid pro quo involved?

I haven't asked for a single favor and none have been offered. It's really more about supporting the rise to power of people who are building a world that aligns with our values.

Does that also give you a kind of direct line — like, can you call [prime minister] Kristen Michal directly? Do you get through right away or do you have to go through a few intermediaries first?

You definitely have access to them, but I think politicians talk to all kinds of entrepreneurs.

Honestly, I don't have Michal's number in my phone, but I'm sure I could get it quickly if I needed to.

New project: Kasvuhoone (Greenhouse)

Although Hinrikus lives in London, where his children attend school, his thoughts and work remain deeply connected to Estonia. His efforts range from launching the Kood/Jõhvi tech school a few years ago, to acquiring Liberty Manor in Rocca al Mare, to real estate development on the edge of Kopli in the Krulli district. The billionaire's latest initiative is his most ambitious yet: he plans to establish Northern Europe's largest business hub — Kasvuhoone (Greenhouse) — in the Krulli district, aiming to spark the next wave of unicorn startups.

"Kasvuhoone will be the heart of the entire district. It's a very special building — 15,000 square meters across multiple floors, bringing in a lot of jobs. Over a thousand people will work here and various programs will be run in the space. In addition, it will include functions for cultural and artistic activities," the entrepreneur explained.

Why get into real estate or development? Why have you decided to get involved in that too?

The idea behind it is that I want to help make Estonia just a little bit bigger. I think Kasvuhoone is a place that can bring new and different things to Estonia, and as a small country, we need to build relationships with the rest of the world. I just want to see new companies being built here. Today, we have about ten unicorns — by 2035, we could have 21, and hopefully some of them will get their start right here.

--

Follow ERR News on Facebook and Twitter and never miss an update!