The origins of Fálkinn may be traced back to 1904 when a young and ambitious Reykjavík carpenter, Ólafur Magnússon, set up a sideline business in bicycle repairs, and, a little later, a bicycle rental service. By 1910 this business occupied all of his time. Apparently he was one of the first to use a bicycle in Iceland, traveling to and from his work on a bike even before the turn of the century. He was a pioneering spirit that spearheaded a long tradition that has stayed with the company ever since.
Magnússon started his business at his own home in downtown Reykjavík, but soon acquired a special facility for his business. He moved it to a backyard building at Laugavegur 24, near his home, and from 1916 he competed with another bicycle repair and sales company that was situated on the street side of this same premises. That company was called Fálkinn. Eight years later, in 1924, Magnússon took over Fálkinn, which by that time had run into financial straits. From that time on, Magnússon’s company, which had up until then operated under his own name, bore the name Fálkinn.