07-14-2025
Andreas Widmer believes in the act of creation, which is why he is passionate about teaching and fostering entrepreneurship. Widmer, who spoke with Purdue’s David Randich at the 2025 Cornerstone for Business Conference, recently released his book The Art of Principled Entrepreneurship and teaches business at The Catholic University of America. But his path to business success and the American dream as a tech entrepreneur began in the unlikeliest of places — as a member of the Swiss Guard at the Vatican.
After his service, he came to the U.S. for college without speaking English. While still in school he joined FTP Software’s leadership team, and called FTP, or file transfer protocol, “fun that pays.” The year he graduated it became the first large tech IPO. Later Widmer moved on to Dragon Systems, the speech recognition software innovator. Within two years, founders Jim and Janet Baker and the management team sold the company for $600 million.
“Here I was, living the American dream,” he recalls. The company’s sale seemed like the ultimate validation of his hard work. But just three months after the sale, everything unraveled. The acquiring company was exposed as fraudulent, and the entire value of the deal vanished overnight.
In the aftermath, Widmer was left reeling. “People always ask me, ‘What do you do when or if you lose that much money?’ The first thing is, you go into this position,” says Widmer curling as if under his desk. “You get depressed, you look back and say, ‘What should I have known?’ I knew these guys, and I knew they were not trustworthy.” It made him question his decision-making and self-worth.
Widmer hails from a small village in Switzerland “where there are more cows than people” and he returned to lick his wounds. It was through this period of doubt and during a visit to his parents that a conversation with his father became a turning point. His father did not offer empty reassurances or focus on the lost millions. Instead, his father offered him a sage perspective.
“I don't know where you're getting this from,” his father chided. “Did I ever teach you that you should be a millionaire by 32? This is not what I taught you.”
Rather than measuring himself by financial success or failure, his father reminded Widmer the real measure is how one responds to adversity and continues to grow as a person.
This perspective helped Widmer reframe his experience. “What I loved about the free markets in the U.S. was not specifically the money,” says Widmer. “It’s the American dream of flourishing on all levels.”
As a business educator, he teaches students that capitalism and business are forces for good when they focus on creating, not harvesting, wealth. Widmer advocates for framing business and a life’s work around the question “How can I help others?”
In the wake of being defrauded, he learned that the stories we tell ourselves about failure, success and our own worth can either lead to self-destruction or to growth.
His experience with Dragon Systems taught him that setbacks are not just obstacles, but opportunities for learning. By reflecting on what went wrong and why, leaders can build stronger, more ethical organizations. He believes that integrity is non-negotiable and fraud is not just one of the costs of business.
“Cheating is not capitalism,” Widmer asserts. Reflecting on the fraud that dismantled Dragon Systems, he emphasizes that true capitalism thrives on integrity and competition. Today, he dedicates himself to teaching others how to adopt mental models rooted in virtue — models that foster resilience, adaptability and the ability to view setbacks as opportunities for growth. His mission is clear: to inspire the creation of goods that are genuinely good and services that truly serve, embodying the highest ideals of a competitive market economy.
