Robbie Paul: Entrepreneurs do a lot more for Auckland than fly in bags of cash. Photo / Sylvie Whinray
Robbie Paul: Entrepreneurs do a lot more for Auckland than fly in bags of cash. Photo / Sylvie Whinray
Opinion by Robbie Paul
It would make for a great episode of Border Patrol if every passenger on this morning’s Air New Zealand flight from San Francisco arrived with bags full of $100 bills.
This would also reflect the more than $500 million that arrived in Tāmaki Makaurau this year thanks to thesale of two obscure start-ups: Kami and Tradify.
It may come as a surprise that collaborative learning tools (Kami) and job management systems for plumbers (Tradify) could generate so much value. But that’s just the start. Approximately $100,000 will continue to arrive every day to fund the salaries of their Auckland-based employees.
Entrepreneurs do a lot more for Auckland than fly in bags of cash.
They create international connectivity. Audacious Auckland entrepreneurs have attracted money and support from the likes of Open AI founder Sam Altman, Google founder Larry Page, and eBay founder Pierre Omidyar. They have established offices across Dallas, Dublin, Dubai and Delhi.
Kami co-founders Bob Drummond, Alliv Samson, Hengjie Wang and Jordan Thoms. Photo / Supplied
Icehouse Ventures’ annual No Barriers founder retreat – hosted on Aotea Great Barrier Island each year in November – attracted visitors this year from San Francisco, London, Seattle, and Denver. They travelled at their own expense for the opportunity to connect with Kiwi entrepreneurs.
Tradify chief executive Michael Steckler. who took the reins from founder Curtis Bailey in mid-2020. Photo / Supplied
The international connections formed by entrepreneurs have resulted in hundreds of millions in investment in Auckland technology start-ups. Examples include smart-collar company Halter (funded by San Francisco-based VC Bessemer), architecture platform ArchiPro (funded by New York-based Tiger), and commercial property management software Re-Leased (funded by London-based JLL).
Although the State of the City Report noted we may be losing the immigration battle for talent to cities such as Sydney, we are winning when it comes to venture capital flows. Australian venture capital funds like Square Peg, Blackbird, Airtree and OIF have pumped millions from Australian retirement funds into innovative Auckland start-ups.
Companies such as Joyous, First AML, Tracksuit, and LawVu have used Australian capital to fund the development of software they then sell to Australian companies. Seems like a great approach for Auckland!
Entrepreneurs also elevate the ambitions and possibilities for Aucklanders. Crimson Education is enabling droves of Aucklanders to attend the world’s best universities. Alimetry and Kitea Health employ dozens of Aucklanders who care deeply about delivering better health outcomes for those in need. And Rocket Lab empowers hundreds of Aucklanders to aim higher with world-leading rocket technology.
Finally, entrepreneurs develop technologies that address significant global issues. A visible example around the Hauraki is Vessev, the world’s first electric hydro foiling passenger ferry (now operated by Fullers). Vessev’s boats can reduce energy requirements by nearly 90% - and arguably seasickness by up to 100% - thanks to their silky-smooth foiling.
Every corner of Auckland has entrepreneurs working on important missions. Parnell-based Tend is developing a digital-first healthcare provider to help New Zealanders be the healthiest people in the world. Mount Wellington-based Mint Innovation is developing technology to extract precious metals from electronic waste. Albany-based Nilo is transforming plastic waste into binding agents for everything from furniture to roads.
Auckland is poised to become a technology utopia. Talent and capital from companies such as Kami and Tradify will be recycled into the next wave of start-ups. The impact of Mint and Nilo will teach the world how to live more sustainably. The success of Rocket Lab and Halter will attract more and better international investors.
The best part: global trends will accelerate our progress. The combination of better technology and cultural acceptance of remote work means Auckland-based companies can hire teams, raise capital, win customers, and even sell companies without getting on a plane.
How will we get our bags of cash in if no one is flying? Ask an Auckland fintech entrepreneur.
