The American dream
Get out and flaunt it!
THERE'S NO DOUBT New Zealand tech companies are successful. IT services exports have grown at an average 14% a year for the last six years, and the ICT sector now accounts for 1.7% of our GDP, or $3.09 billion.
We have some great success stories. Vend, for example, has a 500% growth rate, Grinding Gears 172%; quite a few are growing at more than 50%. But I think we are not reaching our potential. I don’t say that lightly, and I’m certainly not undermining the great work done by individual companies. However as a veteran of the ICT sector (25 years), observer of business growth, and regular visitor to tech hubs like Silicon Valley, I can see there is one core thing which is preventing us reaching our potential – ourselves.
I’ve been lucky enough to spend a couple of months at Stanford University, studying in an executive programme, and this means I’m able to interact with business leaders from around the world, and tech firms from across the Valley. I’ve asked many of them for their impressions of New Zealand tech business, and advice on how our tech companies can be successful here.
Their immediate reaction is bemusement – the question doesn’t make sense, why would a New Zealand company be any different from any other company?
Why do we see ourselves as different, or disadvantaged? Reflecting on this response, I realise there is often an insecurity in our approach, a shyness, a sense we are asking permission to play.
One of the US tech leaders here in Silicon Valley recently asked me why more New Zealand companies haven’t approached him for help – indeed, in our work at NZTE with the Beachheads programme we have many such offers of help from international experts.
And he asked an insightful question: What do you think holds NZ companies back? Is it the size of the dream? In other words, do we allow our aspirations to be limited?
There is a wealth of practical advice for tech business wanting to grow in the US, but unless you’re prepared to dream a little bigger, drop the shy approach and tell your story better, these tips won’t help.
New Zealand companies have to understand that the things that will make our companies succeed are the same things that will make all companies succeed. We are on an even playing field.
If anything, the fact that we come from a small, relatively unknown country is a positive; it makes us memorable. Our country’s history as an agricultural hub is a bonus, not a hindrance. We’re interesting.
Our funny accent and relaxed way of working can be great… mostly (see below).
So get over any perceived insecurities, dream bigger and… Go for it.
Now for some practical advice – virtually none of it my own, and pretty much all of it in the “bleeding obvious” category:
Learn how to pitch! For pity’s sake, if you can’t tell your story with passion, enthusiasm and credibility then get a front-person who can. I can’t stress how important this is. So many great Kiwi companies are poor story-tellers and in a region where everyone is selling, the quality of your story has to be top notch. If in doubt, ask NZTE for some pitch training.
Seek the advice of those who have gone before: Claudia Batten, Rod Drury, Victoria Ransom, Adam Bennett and many more. Google them and get out and pick their brains – think of it as free consulting, free pearls of wisdom.
The Kiwi Landing Pad and NZTE’s North American team are set up to ease the entry into the USA. Use them!
It’s not all about Silicon Valley. While San Francisco and LA are important entry points, there are clusters of success in several “second tier” locations: Seattle; Austin; Colorado; Chicago are just some places where New Zealand companies are starting to find legs. Washington DC remains an excellent beachhead into the public sector, and NYC is still the location for many global HQs and thought leaders in design, finance and retail.
Boots on the ground. You can’t phone it in, you have to be prepared to spend serious time in market, building connections. And the pace here is incredible – if you haven’t returned a phone call or email within 2-3 hours (seriously), you’ve probably lost. And you need to be ready to meet within a day. US investors, customers and tech experts tell us they expect almost real-time access and follow up.
Leverage existing strengths. New Zealand is an agri-business powerhouse with real credibility. Add great technology and you’ve got a winning formula. Better than being just another app developer.
Take on investors – and staff – not just for their money, but for their connections and advice. If you aren’t prepared to dilute, then don’t bother coming. Stock options and good technology are the only way you’ll get good people working for you, so factor that into your business model.
The bottom line is: Dream bigger – and act.
By day (and the occasional night) David Downs is general manager, services, at NZTE. Other strings to his bow include authoring books ( No.8 Re-Wired is the latest), presenting on radio and TV, and playing the ukulele. (We can’t all be perfect.) He blogged about his time as El Presidente at Stanford at idealog.co.nz.
The pace here is incredible – if you haven’t returned a phone call or email within 2-3 hours (seriously), you’ve probably lost. And you need to be ready to meet within a day.”