Guest Blog - USA - Land of Opportunity for New zealand "Kiwi" Exporters

2 Minute Read

As a professional investor and partner in a venture fund, and a Kiwi with long standing involvement in export development, I am often amazed at both the ability of NZ companies to punch above their weight but also dismayed by the naiveté often on display. Here are some ideas based on over 12 years building and investing in businesses as well as working with NZ companies.

 

Still the World's largest economy - the sheer scale, wealth and complexity of the US market poses both daunting challenges and also unparalleled opportunity for NZ businesses contemplating how they can hook their piece of the American dream. This is also the world's epicentre of innovation investment and attracts talent from all corners of the Globe. Kiwi companies, facing obvious challenges of distance and jurisdiction but more subtle ones of culture need to be on their A game to prosper and win in this shark tank!

 

Golden Gate - USA Land of Opportunity for NZ ExportersCalifornia remains the gateway for most NZ companies considering exporting into the US market, and with an economy that is the 8th largest in the world topping $2 Trillion GDP. Technology investment dollars draw talent from around the world - California attracts over 65% of the world's venture and seed capital clustered around Silicon Valley (and the West Coast more generally) with NZ companies and entrepreneurs among the diaspora from around the Globe looking to tap into the ecosystem that spawned Google, Facebook and thousands more start ups. 

However, the opportunities are myriad and not just limited to those sectors that grab the headlines - California is also the largest Agricultural producer State in the US generating over $100B in economic activity and is also the largest dairy producer with many opportunities for tech and services companies in this sector that is fundamental to NZ exports. The impact of technology and reshaping of traditional supply chains, investment and business models creates a pace of evolution that is unparalleled and is also turning traditional concepts of "exporting" and "investment" on their heads. It may be never have been better for NZ exporters to break into this market.

In this environment the critical task for any exporter is to get 'connected'. Being able to play like a local but bring a unique personality and flavor to your business network can be key to standing out in the crowd. So, how can you do this effectively?

  • Get a specialised corporate law firm that can help you traverse regulations, human resources, insurance and liability issues or establishing a presence. They are expensive so use judiciously, but they are also negotiable so be prepared to ask for some investment in the relationship

  • Find conference events targeted on your sector; these can be incredible and concentrated ways to find customers, partners or 'translators' who will help you make sense of the signal among all the white noise.

  • Interact with investors - beyond VC and Angel networks. We continue to see the rise of "Crowd Funding" enabled by changes to securities laws, and companies from start ups to those seeking growth capital opening up new avenues to fund their plans. California also has great Accelerators like Y-Combinator to help groom and progress new businesses. We are also highly active  with our own collaboration efforts, focused on Agritech.

  • Find your "home base" - there is an art to determining where in this massive market your product, company and personality will find resonance. Kiwis do well at blending in and the 'can do' attitude is appreciated here.

  • No short cuts to glory - while everyone recognises you learn more from failure than easy success (!) thorough research, planning and yes, networking, will help you avoid classic pitfalls.

  • Tap into US Government resources - if you have a legal entity here, you may be eligible for the many non dilutive funding programs supporting US businesses. The SBIR programs run by agencies like DARPA, DOE, USDA and NIH among others is focused on commercialisation and invests millions every year.

  • Remember you're not at home - California is increasingly bi-lingual, and there are many distinct cultural differences in business among many other aspects of life. States pass their own laws, regulations operate at county and city levels. In other words, its complicated and much more diverse than NZ companies often realise - and that's just one State.

 

Notwithstanding all this, as they say in California, The Juice is worth the Squeeze!

 

About the Author: Arama Kukutai - co-founder and Partner at Finistere Ventures is a pioneer and investment professional in the Agriculture and Food technology sector.


 

All comments are welcome, as we strive to share our collective experience. So please comment below:

- are Arama's tips on the mark?

- what are the other important considerations for companies looking to the USA?

Let's share, warts and all!

As Kiwis, we have a small base and are so far from export markets, so it is important that we share.

 

Regards

Neil

 

P.S - I have linked here the experiences and tips shared about exporting with another guest blog by Geoff Letcher, CEO of Quadbeam  a highly successful SME manufacturer of specialised Electronic Instrumentation, with a focus predominantly on the Dairy, Food and Beverage and Mining Markets.

"Get Connected"

Tips on how to break into the USA Market.

I (Neil) worked with Arama Kukutai in our earlier years at Tradenz (now NZTE), and appreciated both his down to earth approach, commercial acumen, and mana.

Since those days, we have both moved on in our respective journeys, with Arama moving to the USA and reaching new highs as CEO for Finistere Ventures - a pioneer in the Agriculture and Food technology sector; where he continues to significantly help a number of NZ companies.

Arama shares in this short blog some important tips for NZ companies looking to work in the USA. Reach out if you need more advice.

And if you would like to access further such blogs on exporting or business growth topics for SME's, take a few seconds to complete the following form.

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