# #004 - How one green company could beat the odds with a magical pencil and double each year, with Michael Stausholm of Sproutworld, Denmark

- Show: [The Hardware Entrepreneur](https://hardwarepodcasts.com/podcast/the-hardware-entrepreneur)
- Published: 2016-12-14
- Length: 28m
- Page: https://hardwarepodcasts.com/podcast/the-hardware-entrepreneur/2016-12-14-004-how-one-green-company-could-beat-the-odds-with-a-magical-pencil-and-double-e
- Listen: https://traffic.libsyn.com/secure/thehardwareentrepreneur/004.mp3

## Summary

Michael Stausholm, founder and CEO of Sproutworld, explains how his Danish company created the world's first plantable pencil, turning a simple wooden pencil with a seed capsule into a global sustainability brand. He details the journey from bootstrapping with positive cash flow by requiring upfront payments to securing a business angel investor for rapid scaling. Stausholm highlights key decisions such as acquiring the IP from MIT students, targeting B2B clients like Disney and Coca-Cola, and hiring staff based on passion for sustainability rather than just technical skills.

## Chapters

- [0:01](https://hardwarepodcasts.com/podcast/the-hardware-entrepreneur/2016-12-14-004-how-one-green-company-could-beat-the-odds-with-a-magical-pencil-and-double-e#t=1) Introduction: Michael Stausholm and Sproutworld
- [5:01](https://hardwarepodcasts.com/podcast/the-hardware-entrepreneur/2016-12-14-004-how-one-green-company-could-beat-the-odds-with-a-magical-pencil-and-double-e#t=301) The Plantable Pencil Product Design
- [7:54](https://hardwarepodcasts.com/podcast/the-hardware-entrepreneur/2016-12-14-004-how-one-green-company-could-beat-the-odds-with-a-magical-pencil-and-double-e#t=474) Founding Story and IP Acquisition
- [10:18](https://hardwarepodcasts.com/podcast/the-hardware-entrepreneur/2016-12-14-004-how-one-green-company-could-beat-the-odds-with-a-magical-pencil-and-double-e#t=618) Business Model and Market Validation
- [14:29](https://hardwarepodcasts.com/podcast/the-hardware-entrepreneur/2016-12-14-004-how-one-green-company-could-beat-the-odds-with-a-magical-pencil-and-double-e#t=869) Bootstrapping and Financing Strategy
- [19:01](https://hardwarepodcasts.com/podcast/the-hardware-entrepreneur/2016-12-14-004-how-one-green-company-could-beat-the-odds-with-a-magical-pencil-and-double-e#t=1141) Hiring Criteria and Company Culture
- [21:36](https://hardwarepodcasts.com/podcast/the-hardware-entrepreneur/2016-12-14-004-how-one-green-company-could-beat-the-odds-with-a-magical-pencil-and-double-e#t=1296) Inspiration and Future Growth Plans

## Topics

- [Starting a product company](https://hardwarepodcasts.com/topic/starting-a-company)
- [Industrial & consumer product design](https://hardwarepodcasts.com/topic/industrial-design)
- [Validation & product-market fit](https://hardwarepodcasts.com/topic/validation-and-product-market-fit)
- [Fundraising & investors](https://hardwarepodcasts.com/topic/fundraising)
- [Leadership, teams & culture](https://hardwarepodcasts.com/topic/leadership-and-culture)
- [Intellectual property](https://hardwarepodcasts.com/topic/intellectual-property)

## Most relevant to

companies scaling up

## Mentioned

- Sproutworld (company)
- Sprout Pencil (product)
- Disney (company)
- Coca-Cola (company)
- Bank of America (company)
- IKEA (company)
- MIT (company)
- Kickstarter (other)
- Amazon (company)
- Richard Branson (other)

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- [Afterschool Podcast, Episode 14 - Pencil by FiftyThree (12/17)](https://hardwarepodcasts.com/podcast/core77-podcast/2013-12-17-afterschool-podcast-episode-14-pencil-by-fiftythree-12-17) (Core77 Podcast)
- [Taming the Dragons whilst Saving the Planet](https://hardwarepodcasts.com/podcast/its-only-a-prototype/2025-05-01-taming-the-dragons-whilst-saving-the-planet) (It's Only a Prototype)
- [Back to the Roots: Nikhil Arora and Alejandro Velez](https://hardwarepodcasts.com/podcast/how-i-built-this/2021-11-08-back-to-the-roots-nikhil-arora-and-alejandro-velez) (How I Built This)
- [Bootstrapped to 800,000 Units Sold Worldwide: The Story Behind Rockit](https://hardwarepodcasts.com/podcast/its-only-a-prototype/2025-04-17-bootstrapped-to-800-000-units-sold-worldwide-the-story-behind-rockit) (It's Only a Prototype)

## Citing this page

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