Businesses going global

Fast-growing Wellington based software firm Hnry, helps self-employed people manage their accounts. The company’s catchphrase – ‘Never think about tax again’ has resonated with its customers and the business has seen incredible growth in New Zealand and Australia.

Launched in 2017, Hnry is the brain-child of co-founders James and Claire Fuller. The couple initially moved back to Wellington from London as that was where Claire’s family were based. Claire says they had no long term plans to remain in the capital, but found themselves falling in love with the city all over again and quickly realised it was the perfect place to start their business.

“The start-up community in Wellington is phenomenally supportive, everyone seems to know someone who might be able to help. Connections are made, and time and advice are given, for no other reason than people want to help you succeed. I can’t imagine that occurring on such a vast scale in any other city in the world.”

That’s a sentiment shared by investment company Sharesies whose Co-founder Brooke Roberts says Wellington is full of experienced people who are keen to give back to those starting out.

There is a real community full of purpose driven, connected people from well established companies like Xero and Trade Me who really want to share their knowledge. Being connected to these people has helped us to build an incredible team. There’s just this great energy in the city which is always growing.”

Sharesies launched five years ago with the goal of making investing as easy and accessible as possible, and today it has more than 600,000 investors across New Zealand and Australia, with

more than 10% of the New Zealand population having an account. During the company’s Australia launch Brooke says she did move to Sydney for a while to get things off the ground but the company’s home will always be Wellington.

“Ultimately we have a great team in place in Australia and I have been able to return home. I’ve got young kids and one of the best things about being Wellington based is the lifestyle the city offers you, I’m never more than 15 minutes away from them.”

The Wellington lifestyle is something which global company Montoux sees as a bonus. Chief Product Officer and Founder Klaas Stijnen says they have found the liveability of the city a unique selling point when it comes to attracting staff.

“Because we are looking for quite a few people in highly specialised areas, we hire from both New Zealand and offshore. People see Wellington as a really great city to live and work in, which ultimately is really beneficial to us.”

Montoux develops technology to help insurers optimise actuarial workflows, and while the business has offices all around the world, Klaas Stijnen says the company has never had any doubts about Wellington being one of its key hubs.

“Our Montoux offices share the same building as a few other fintech businesses, it’s just great to feel so connected, to have access to a lot of minds and feel like you are not alone. We are all fighting the same fight, even if it’s in slightly different areas with slightly different problems, we can all help each other.”

Sharesies Co-founder Brooke says another bonus to being headquartered in the capital is the proximity to regulators, something which was key during their start-up period.

“We were launching a business which operates in a highly regulated environment, so making sure we could build relationships with the right people and really understand those regulations was really important.”

Despite all three companies expanding into offshore markets none of them see their home city’s location as a disadvantage, in fact Claire says when Hnry decided to expand into Australia they originally thought they might need to relocate, however Covid threw a spanner in the works.

“As a result of the pandemic we were forced to change our approach to launching in Australia. We had no option but to manage everything from Wellington and over the past two years we have been able to remotely recruit a phenomenal team in Sydney to take over the day to day running of the Australian operation. This has taught us, and our investors that we don’t need to relocate in order for international expansion to be successful, and we can remain living in the city we love”

This content was produced in partnership with Wellington NZ. Their ‘Esc to Wellington‘ campaign is inviting skilled people to Wellington Te Upoko o Te Ika, as a destination to work, live, and thrive.

Jacky was born and raised in Gisborne, and had what she describes as a fairly transient childhood, moving all over the region. When she was 16 she won a scholarship to study in Japan for a year and fell in love with the country and its people.

“I finished high school and went on to study Law and Japanese at Canterbury University, where I graduated with an LLB (Hons) and BA in Japanese. I joined Russell McVeagh as a summer clerk and then as a graduate which provided a wonderful start to my legal career. It was clear from the outset that I wanted to do M&A and that this would somehow be connected to Japan. I just wasn’t sure how to piece it all together. Then I was offered a secondment to Nagashima Ohno Tsunematsu, the largest law firm in Japan. It was incredible to be involved in complex cross-border transactions and I started to see how my skillset would be useful on the international stage.”

After heading to London on her OE, Jacky met and married a British man and joined what is now Hogan-Lovells, one of the world’s largest international law firms. In 2009 she was asked to come back to Japan and help launch the firm’s Tokyo M&A team, now one of the largest M&A teams in the region.

“I am so proud of the work I have done around the world, and especially of my career in Japan building the Corporate & Finance practice here, which has expanded four-fold during my tenure. I am currently a Partner, Regional Lead for Corporate and Finance in Japan, co-Global Lead for our Manufacturing and Industrials sector, a member of the firm’s global M&A leadership committee, and Chair of the Tokyo office’s Responsible Business Committee. I also have the privilege of leading a multilingual, multicultural team of diverse lawyers, with different voices and perspectives.”

Jacky says the 70 year milestone of diplomatic relations speaks volumes to the relationship between New Zealand and Japan and the two countries political and economic views enable strategic cooperation in the areas of security and defence, and each country’s economy, as well as on a wide range of regional and global issues.

“The relationship between Japan and New Zealand was initially built on trade of agricultural products, it has since expanded to include technology, film, manufacturing, etc., as well as educational and cultural exchanges. Currently, Japan is New Zealand’s fourth largest trading partner at over NZ$8 billion in trade value per year and fourth largest source of foreign investment at over NZ$5 billion. New Zealand and Japan are both members of the Regional Comprehensive Economic Partnership and have Free Trade Agreements under the Comprehensive and Progressive Trans Pacific Partnership (CPTPP), contributing to greater value and volume of trade.”

“In addition, this anniversary is significant because it reflects the achievements of Japan-New Zealand cooperation thus far and a further commitment and coordination in maintaining peace and security, free trade, climate change countermeasures, and sustainable growth. In fact, Prime Ministers Ardern and Kishida both recently reinforced their respective country’s commitment to continued cooperation in food and agriculture, renewable energy, technology, as well as space development, cybersecurity, and global health, among many other areas.”

Aerospace is one of the industries Jacky says could see more collaboration between New Zealand and Japan

Jacky says Japan is an excellent option for Kiwi businesses seeking to attract offshore investors and her biggest piece of advice to those looking to go down that route would be to make sure you have a solid business plan which outlines your company’s strategy.

“It is important to remember that investors are risking their funds, so a strong business plan can create a greater incentive to invest. Additionally, I would recommend that businesses make sure all legal documents are in order because properly prepared and organised legal documentation makes due diligence easier for investors and highlights a business’s legitimacy and reliability. An experienced legal advisor will also be able to help you identify any missing information and anticipate and resolve issues at an early stage. Investors are taking a risk with their funds and the more certainty and visibility they have the better. Another recent component is to demonstrate supply chain continuity. Businesses should be able to prove that their operations are robust, can continue well into the future and generate sustainable profits.”

Japan already has one of the largest economies in the world, and its global reach plays a significant role in the international trade system. Jacky says with New Zealand being an increasingly important player in the agriculture, technology, and energy resources markets, there are good opportunities to create more room for business growth and expansion between the two countries.

“The key areas where I anticipate growth and business opportunities are in renewable energy, fintech, aerospace, and agritech. New Zealand has a long history of being an innovator in energy and is recognised as a leader in renewable energy. I believe the country’s renewable energy resources and environmentally friendly energy supplies offer future business opportunities with Japan, especially in light of Japan’s commitment to renewable energy at COP26 and goal of achieving carbon neutrality by 2050. This increasing focus on Environmental, Social, and Governance (ESG) initiatives, particularly decarbonisation, has led to the popularity of the renewable energy sector as destinations for investments.”

Japan and New Zealand have a long history of diplomatic relations

“Japan’s fintech market is currently valued at NZ$15 billion and expected to grow even more because of recent governmental support in the industry. The pandemic pushed Japan in a new direction with increased interest in digitalisation and e-commerce, and many businesses are looking to streamline operations while ensuring data security, creating opportunities for Japanese and New Zealand businesses.”

“The Japanese government identified the space sector as one of the areas of focus under the Growth Strategy Action Plan of June 2021. It intends to strongly promote space development and utilisation from the viewpoint that space is a growth industry and is indispensable for security, disaster prevention, and the achievement of sustainability goals. This industry is estimated to reach NZ$57 billion by 2050.”

Jacky says Japan is a geographically small nation limited in resources and is dependent on trade for agriculture, food, energy supplies, and natural resources. She feels there are an increasing number of business opportunities in the agritech, horticulture, and food industries as a result of Japan’s ageing population and labour shortages, concerns for national food security (Japan currently imports around 60% of its food), and accommodative government policies.

“This increase in demand for agritech provides business opportunities for New Zealand, which is smaller in market size, but a net exporter of agricultural products, suggesting that there is still room for business growth and expansion between the two countries. One such example is the partnership between Robotics Plus and Yamaha Ventures. Yamaha Motor invested in the New Zealand agricultural automation and robotics company, Robotics Plus, to develop agricultural technology. As New Zealand and Japan look ahead to further years of strong diplomatic relations, the future of business opportunities between the two companies is looking very bright indeed.”

North America

The conflict in Israel is dominating the US news cycles right now, even Donald Trump has fallen from the bulletins despite his court appearances looming. New York has large communities of both Palestinian and Israeli families so it is a tense time in the city with a visible increase in police presence. US President Joe Biden has also visited the region to show his support and has just promised an extra $171 million NZD of support.

In business news New Zealand’s wine exports to the USA are on an impressive upward trajectory, with a remarkable $450 million growth in global export value over the past year, largely driven by the strong consumer demand for New Zealand wine, especially Sauvignon Blanc. Sales into the US soared by 25% to $870 million, and further growth is anticipated, potentially turning the US market into a billion-dollar industry in the near future. This record-breaking growth reflects the premium quality and appeal of New Zealand wines, making it a noteworthy success story in the world of wine exports.

The US is starting to catch up to the UK in terms of the prominence of Environmental, Social, and Governance (ESG) measures gaining traction. While ESG remains a polarising topic, influenced by political views, it is progressively winning favour among American consumers, businesses, and investors. The Hartman Group’s 2021 sustainability study indicates US consumers are increasingly conscious of the social and environmental implications of their purchases, with 84% participating in sustainability initiatives, 15% favouring sustainable products, and 28% recognizing societal needs for environmental and social change. Most Notably, 83% of consumers believe that companies should actively shape ESG best practices, and 86% of employees prefer to support or work for companies aligned with their ESG concerns. Therefore, New Zealand exporters can gain a competitive edge by embracing ESG in their US market strategies.

Gary Fortune, Kea North America Regional Director

UK and Europe

A busy month for Europe with a sharp rise in tourists thanks to the Rugby World Cup, many fans have taken the opportunity to travel to other countries and enjoy the end of the European Summer.

In the UK recession fears are still playing on the minds of many businesses. The Institute for Fiscal Studies (IFS) warned that Britain will slump into a “moderate” recession in the first half of 2024, as the struggle for growth remains while borrowing costs stay elevated. The news comes as the Bank of England’s chief economist warns there is still “work to do” to bring UK inflation back under control – a hint that the base interest rate could rise yet again. Despite this there are opportunities for Kiwi companies looking to expand into the market with the tech sector in particular still offering good opportunities.

NZ-based tech businesses looking to scale successfully into the UK should be using a targeted approach that’s backed by thorough data and analysis. The UK is projected to occupy the sixth position globally in 2050 – it’s a stable, high-opportunity environment with an aligned business landscape to Australia and New Zealand, especially after the FTA’s agreed recently. As Joseph Nelson, Trade Commissioner for the UK and Ireland at NZTE, said: “The FTA’s investment provisions incorporate modern protections similar to other recent FTAs, providing certainty for investors from both countries. This will create conditions for further growth in two-way investment.”

Sara Fogarty, Kea UK/Europe Regional Director

China

Chinese social media platforms report that niche brands are on the rise across the country. This trend towards more niche products is primarily being driven by Gen Z consumers seeking their own style and who are more interested in a brand’s story and how it identifies with them. This provides a good opportunity for New Zealand brands to enter or grow in China as many Kiwi brands fit into the “niche” market.

When it comes to tourism, Chinese tourists are back into the swing of things. New Zealand remains one of the favourite destinations forChinese tourists and travel agents are seeing an increase in demand as people regain the confidence to get out and explore. There is also growing demand for bespoke family tours and high end private tours. Steam cruise trips, and glacier walking programmes are also proving very popular.

Finally, coming up fast is the 6th China International Import Expo (CIIE) which will take place from 5 November to 10 November 2023 in Shanghai. The outlook for economic and trade co-operation between China and New Zealand is promising, with consumer upgrades becoming a key growth area for New Zealand businesses in China. As China takes steps to encourage foreign companies to play a greater role in the Chinese market, national exhibitions such as the annual CIIE offer attractive growth opportunities. So far, New Zealand companies have registered 24 exhibition places with 450 square metres of booths.

Rebecca Bao, China Regional Director

New Zealand

The 2023 General Election has confirmed a change of Government for New Zealand although exactly what the final make up will look like is still uncertain with more than half a million special votes still to be counted – many which were cast by offshore Kiwi.

Labour remains in Government in a caretaker role but has already started the process of handing over the reigns with all parties agreeing that the focus is on a smooth transition. The final vote count is expected on November 3rd and this will no doubt come with a number of announcements as National and ACT outline their coalition terms.

Some of the key priorities outlined in National’s first 100 days include removing the Auckland Regional Fuel Tax, restoring 90-day employment trial periods for all businesses, repealing Labour’s Three Waters legislation and RMA 2.0 laws and giving police greater powers to search gang members for firearms and making gang membership an aggravating factor at sentencing.

ACT is on board with repealing Three Waters and returning water ownership to councils as well as supporting changes to the Reserve Bank Act and bringing back 90 day trials for businesses. They also want to overturn the ban on oil and gas exploration and nullify changes to live animal export bans.

Kiwi businesses both here and abroad will be watching with interest as the government starts to outline its priorities for different sectors.

Kellie Addison, Global Director Stakeholder Affairs

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We’ve all been there, driving round and round the block looking for a parking space while becoming increasingly frustrated by the empty spaces you’re not allowed to park in. That was a problem Toby Littin and his business partners set out to solve in 2016 and true to the Kiwi nature of their company they picked an All Blacks game as their first big test.

“At the time the sharing economy was going gangbusters and so we came up with the idea to allow people with spare parking spaces to be able to list them on an app for others to use. We chose the night of an All Blacks match at Eden Park to launch the concept and it was great fun, we parked about 120 people that night, I had all my family out in jackets and the rain and we had a blast. Originally we thought our market would be events and baby boomers but we came to realise our dynamic market is younger and it is commuters and regular users.”

The company still maintains some of their marketplace business but has since pivoted to become much more of a software as a service business where Toby says they are able to make much more of an impact.

“Our software helps businesses to manage their parking assets. If you’re a big employer, you lease a lot of office space and you’ve often got car parks associated with that. What we find is that, especially now in a hybrid working environment, those car parks are not always being used efficiently. For example, a business might have 200 spaces under their building and lease another 200 spaces down the road. Our software allows you to allocate spaces fairly between employees and potentially get rid of the ones down the road, and if you still have some left over, release those to the public and generate some money.”

Parkable’s software caught the eye of tech giant Meta who Toby says was looking for a way to increase employee experience in order to attract the best talent.

“Meta is competing for talent with companies like Amazon and Google and they realise that just paying good salaries isn’t enough, they need to create an environment where people want to come to work. They recognised that car parking is a very emotional issue for their employees and that it was often a source of negative sentiment. So they did a global search for a solution and came across our platform.”

However, it was nearly a missed opportunity for the Kiwi company who didn’t actually believe it would feature on the radar of such a global tech giant. “Meta reached out via email and we thought it was spam so we ignored it. And they reached out again and the second time we were like, ‘oh, some student with a Facebook account is playing a joke’. The third time they reached out we thought we better reply, so we did. We laugh about it now but thank goodness they were so tenacious.”

Meta reached out during the pandemic, a time which Toby says initially decreased demand for their product but long term has provided huge opportunities.

“Before the pandemic, we used to talk about flexi working and I would stand on a stage and say to people if you’re moving to flexi working give us a call and only two out of a hundred people would listen. But now that the whole world has gone hybrid we have this huge tailwind of demand, it’s been crazy but also amazing.”

Parkable has been through a lot of leanings in the past six years to get the company to where it is today. The deal with Meta is still in the early stages but Toby says it’s already giving them huge insights and learnings and has allowed them to imagine other opportunities. He says his best advice to other Kiwi tech companies is to always think big.

“The other day I heard the expression ‘If you want to win the big prizes, knock on the big doors’ and it’s so true. To really unlock scale, you’ve got to get into the big markets and approach the biggest customers. It’s how you grow to hyper scale quickly. We’re not at hyper scale yet, but we’re starting to feel some of that momentum and it’s pretty exciting.”

“For us, the key lesson has been to go hard and go early, that way you can fail fast. I wish we had gone harder at our marketplace business earlier. We were part-time founders, we all had day jobs, but looking back I wish we had gone boots and all into our marketplace business earlier so that we could learn the valuable lessons around what are the unit economics? Is it scalable or is it not? And how do we scale and into what segment? We probably could have saved a year and a half of learning if we had gone harder earlier. There were plenty of things we failed at and at the time those were quite stressful but looking back they were really key learning moments as well.”

Parkable has a global staff of 55 and is currently in the process of hiring more. Toby says alongside the business learnings Parkable’s journey has also really driven home to him the importance of great people.

“The pandemic really taught me the power of purpose and the power of authenticity and authentic leadership. During Covid we had some incredibly humbling moments from some incredibly amazing people inside our business, people were coming to work with so much uncertainty and not knowing which way up the world was. To be able to be really purpose focused and really respond to the wants and needs of our people is such a powerful part of our story and I think will really feed into our success for many years to come.”