TEDTalks: The Capitalism Paradox Season 1 Episode 8 Halla Tomasdottir: A Feminine Response to Iceland's Financial Crash

Halla Tomasdottir is a pioneering Icelandic entrepreneur who founded the first investment firm run entirely by women. In this TED Talk, she shares her experience of the financial crash that rocked Iceland in 2008, and the lessons learned about gender, leadership, and the vulnerability of our economic systems.

Tomasdottir begins by describing her background as a corporate executive, and the moment of realization that led her to start her own business. In the early 2000s, she was recruited to work for the Icelandic investment company Kaupthing, which had grown rapidly and aggressively in the years leading up to the crash. Tomasdottir was tasked with expanding the company's presence in the UK, but as she traveled and met with investors, she started to feel uneasy about the values and priorities of the finance industry.

"As I sat in these meetings, I realized that there was an elephant in the room," she says. "Nobody was talking about the fact that the companies we were investing in were not always ethical or sustainable. We were just looking at the numbers."

Tomasdottir became increasingly concerned about the risks and blind spots in the financial system, and decided to leave Kaupthing to start her own firm, Audur Capital. Audur was unique in its focus on values as well as profits, and it quickly grew in popularity among investors who wanted to support women-led businesses and sustainable industries.

Then, in October 2008, everything changed. Iceland's three largest banks, including Kaupthing, collapsed within a matter of days. The country was plunged into a deep recession, and many Icelanders lost their homes, jobs, and savings. Tomasdottir and her team at Audur were faced with a daunting challenge: how to survive and thrive in the aftermath of a financial disaster.

"Those of us who remained had to roll up our sleeves and get to work," she says. "We had to find solutions, and we had to do it fast."

Tomasdottir and her colleagues began by rethinking their approach to investment. Instead of focusing on short-term profits, they looked for companies that were resilient, innovative, and socially responsible. They also paid more attention to the dynamics of gender and power, recognizing that the traditional "alpha male" culture of finance had contributed to the crisis.

"We realized that we needed to bring a feminine mindset to the table," she explains. "We needed to listen, to collaborate, to empathize, and to think long-term."

Over the next few years, Audur built a diverse portfolio of investments in sectors such as clean energy, creative industries, and education. They also supported female entrepreneurs through mentorship, networking, and funding. By 2012, the company had surpassed its pre-crash peak and become a leading player in sustainable finance.

Tomasdottir's TED Talk is a powerful testament to the importance of diversity, creativity, and resilience in the face of adversity. She makes a compelling case for why we need to rethink our assumptions about capitalism and leadership, and to embrace a more inclusive and sustainable approach to economic growth.

"In the end, successful leadership is not just about IQ, it's about EQ," she says. "It's about being able to read the room, to connect with people, to inspire them, and to bring out the best in them. It's about being a servant leader, not just a boss."

Whether you're interested in finance, entrepreneurship, or social change, Halla Tomasdottir's TED Talk offers a fresh perspective on some of the most pressing issues of our time. Through her example, we can learn how to navigate the paradoxes of capitalism, and how to build a better future for ourselves and our communities.