Influencing ’s future with Tech

The New Zealand technology sector and listing with NZX. All you need to know.

.com/services/market-participants/publications NZX Tech Report 2020

$7.3 billion in tech exports

9% of total NZ exports are tech

104% 21,870 tech enterprises in growth in tech 2019, with 555 being exports compared new in the last with 2015 12 months

110,000 New Zealanders employed in tech

2 Foreword

When you look across the S&P/NZX 50 there’s no escaping the importance of technology – from healthcare, nutrition and telecommunications to transport, infrastructure, energy and retirement living.

While retaining the very essence of what Technology has never been more important we’ve always celebrated in New Zealand – to our country, as the fastest growing individuality and a quiet determination to earn export sector in 2019 and particularly as the success – Kiwi companies have shed the Government considers how the evolving old “No.8 Wire” mentality to become a global global situation with COVID-19 might impact showcase for technology benchmarks. some industries that have long been at the core of New Zealand’s economic success. We are defining our place, rather than looking to the rest of the world for validation. This is There is a tremendous opportunity in applying an important evolution among the standout innovation and technology to what we already examples – tapping into global trends and do very well, so that we build on traditional growth opportunities, with New Zealanders strengths to ensure we have the long-term backing them along the way, and turning local resilience we need in our economy, which revenues into the foreign earnings that drive delivers high-value jobs and contributes to our economy. the wellbeing of all New Zealanders. In this report we put the spotlight on At NZX, we’re passionate about our role technology, some of the key trends, and in capital formation in New Zealand, and feature on two of our listed companies who working with you to support your growth and are global leaders, Rakon (NZX: “RAK”) and ambitions – helping shape a brighter future, Pushpay (NZX: “PPH”), taking that Kiwi and create what’s next. can-do and hard graft to be the very best in the world at what they do.

Mark Peterson Chief Executive NZX

3 NZX Tech Report 2020

Kiwi ingenuity is a phrase we often hear to describe our collective ability to roll up our sleeves and solve a problem, despite the challenges in front of us. It is a character trait that is interwoven into the fabric of New Zealand, which has helped us to build, innovate, disrupt and challenge, for decades.

4 Introduction

The Kiwi tech sector is this ingenuity in-action. Thousands of lightbulb moments take place each and every day, with any one of them turning into the next big idea and potentially the launchpad for a new global business.

At NZX, we are recalibrating our focus to become part of the tech ecosystem, helping provide our brightest minds with an environment in which ideas can be nourished and cultivated. Access to sufficient funding is the cornerstone to this objective.

It is important for the gatekeepers of capital at all stages to ensure both current and future tech leaders are properly informed of these levers of scale. This includes early stage venture capital, private equity, bank funding, as well as both public and private markets.

This report seeks to provide a snapshot of the tech sector in New Zealand and demystify the listed market. We truly believe that the public markets can provide a long- term and viable avenue for profile, investability and scale, whilst providing stakeholders with access to a liquid secondary market.

Sarah Minhinnick Head of Issuer Relationships NZX

5 Thinking global, benefiting local

The tech sector was Figure 1: Exports Revenue Generated from the Tech Sector New Zealand’s fastest growing export sector in 2019. 11,000 The impacts of COVID-19 10,000 to date have significantly 9,000 accelerated the importance 8,000 of this sector’s contribution 7,000 to rebuilding New Zealand’s 6,000 economic future. 5,000 4,000 Exports Value ($m) 3,000 Figure 1 shows the tech sector’s 2,000 share of exports has increased 1,000 over the past five years. The ICT 0 industry has demonstrated some 2015 2016 2017 2018 2019 2020 2021 2022 2023 rapid growth and is expected to be a key driver for future growth, ICT (Actual) Manufacturing (Actual) Total Tech Sector (Actual) compared to dairy and tourism, ICT (Projection) Manufacturing (Projection) Total Tech Sector (Projection) two of New Zealand’s historically strong export performers. Figure 2: Exports Growth Rate in Tech, Dairy and Tourism Figure 2 shows that the tech sector’s forecast growth rate has 30% the potential to align with dairy exports rate of growth in 2020. This will be part of the solution to 20% plugging the export revenue hole felt in tourism. To stimulate or 10% even maintain the rate of growth in the tech sector, we need to 0% ensure that there is designated focus and strategic investment in -10% innovation that creates scalable and globally relevant solutions. 20% 2015/16 2016/17 2017/18 2018/19 2019/20

Dairy Tourism Tech

6 Sources: Fig. 1 Stats NZ and NZ Tech, Fig. 2 Stats NZ and NZ Tech Rethinking NZ’s future, stimulating

2019 R&D funding investment in tech $570 million, indicating that the potential opportunities for further growth in the tech sector are significant.

R&D investments and export Figure 3: R&D Expenditure in the Tech Sector as a Percentage of Exports performance both influence the competitiveness of an industry. 15% Although independent of each other, the limited amount of investment in R&D within NZ could drive start-up 10% innovation offshore. There have been a number of examples where NZ tech companies have sought R&D support 5% offshore and these companies are often sold early to overseas 0% companies, removing the future 2015 2016 2017 2018 2019 export revenue streams from NZ.

While NZ’s R&D investment in tech has Figure 4: Number of Individual Investors in the Tech Sector been reasonable [Figure 3], strategic Sellers positioning for R&D investment 4000 Buyers in globally relevant solutions will help fuel further growth. Continual 3000 innovation improvement is important for NZ to gain and maintain a global 2000 competitive advantage in the sector. 1000 Investment behaviour in NZX-listed Investors Individual tech companies sharply increased 0 from early 2020, and was sustained Jan 17 Jan 18 Jan 19 Jan 20 throughout the COVID-19 lockdown period [Figure 4]. The significant jump in the number of buyers over sellers Figure 5: IT Sector Index Returns Compared to S&P/NZX 50 Returns illustrates new investors prefer to buy IT 75% and hold. This supports the possibility S&P/NZX 50 of a broadening tech investor base and 50% opportunity for increased liquidity and new investors over time. As shown 25% in , S&P/NZX 50 listed tech Figure 5 0% companies collectively outperformed the S&P/NZX 50 over the past three -25% years. While falling more substantially -50% during NZ’s COVID-19 lockdown, Jan 18 Jul 18 Jan 19 Jul 19 Jan 20 Jul 20 they also recovered faster and continue to outperform.

Sources: Fig. 6 Annual Financial Results and Stats NZ, Fig. 9 NZX Data, Fig. 10 S&P Global 7 Case Study Feature thinking big in an extra- ordinary space

For a Kiwi company founded in a garage Rakon is a world leader in the rarefied domain of high-precision frequency in two years before the control products (FCP), a supplier to the world’s largest telcos, space Apollo 11 moon landing in 1969, it’s a agencies, aircraft manufacturers, and innovators in autonomous vehicles. pretty big achievement to have your “Each has its own challenges,” says tech on the Rosetta space probe mission CEO, Brent Robinson – someone who thrives on the constant pace to Jupiter – a mission that resulted in of the technology cycles and loves nothing better than winning the the first-ever landing on a comet. global race to find a solution.

8 Advancement in 5G will open a “The small pieces world of opportunity in fields such as robotic surgeries, evolution of extremely of IoT (Internet of Things) and gaming. Sitting at the pinnacle of precise, tailored telecommunications, Rakon is one of the key FCP suppliers to this sector technology from globally with their components embedded in these expanding this New Zealand networks. Network latency has been reduced 90% over the past ten years to two milliseconds – but Brent and company are his team are already focussed on the finding their next benchmark in performance. With each of the four Rakon The European Space Agency way into an components for the Rosetta space lander module that touched down mission requiring 2,500 hours of on the comet 67P/Churyumov– increasing range testing – and accompanied by Gerasimenko (67P) on 12 November hundreds of pages of technical 2014 is a measure of the credentials of applications.” documentation – this was an of the Rakon team, who are important milestone to celebrate. deeply connected with the needs Then, once the cheering’s done, this of their customers. When the RAK ticker went live in team of just 950 is back to “being May 2006 the opportunities were the first”. This could be solving how Brent attests to the absolute in global positioning systems (GPS), to provide the precise timing to importance of understanding your and that heritage is still inherent to enable satellites and spacecraft to niche, including your customers’ this ingenuity success story that’s operate perfectly in the extreme ecosystems and technology setting itself apart by designing conditions of space, or adding its standards – in many cases involved solutions to problems even their advanced processes to tonnes of in shaping evolving frameworks. customers don’t know about. sliced and diced quartz crystal such While Rakon has people based in as unlocking the future of oscillator Brent says: “To be first, you really England, and , New technology, Quartz XMEMS™. need to intimately understand what Zealand is a good country to operate the challenges are”. Being a little fish in a big pond from if you “want to be the best in doesn’t faze Rakon. Brent is a big the world”, he says. There is still The company’s drive to research and believer in making the pool smaller the heart of that family business understand knowledge gaps within and being the smartest fish in formed back in 1967, and the values their niche is fundamental. Being the school – a strategy creating that they cherish as part of an one of the first companies to learn unlimited opportunities for a Kiwi international competitive advantage. early on the attributes needed in the company that’s quietly getting on frequency control of GPS – including This is a team dreaming big – about with transforming the way we live, environmental conditions, led to the opportunities in remote medical work and play. the development of high-reliability procedures performed by surgeons products used in the autopilot on the other side of the globe, capability featured in many Boeing driverless cars that react in real-time and Airbus models today. to road conditions and hazards. . . Brent Robinson and, in the words of Buzz Lightyear, Tackling autonomous cars head Chief Executive this thinking extends “to infinity on, Rakon is drawing from its Rakon and beyond”. experience with frequency control in driverless tractors, trucks and defence applications – to design products that enable synchronised information from sensors in real time with control functions in the vehicle. The intricate detailing of these systems will detect obstacles, reacting with speed and accuracy to ensure safety.

9 NZX Tech Report 2020

Demystifying the market

Becoming a publicly listed Investors often focus on the company, far from being an long-term outlook, market share Myth: I need to be a and competitive advantage of a end-game, is the start of a new large business and I need business, as well as the experience era in the life of a business. to be able to raise of the management team. The rewards of an increased significant amounts of Furthermore, most companies profile amongst customers and who consider listing have a good capital as part of an IPO? peers, access to new sources growth rate. of capital and the associated The ‘classic’ IPO is the most well- opportunity to scale your trodden path, with respect to which engaging with a distribution business, are only a few of the The minimum anticipated market and broker network is key to many benefits for a publicly capitalisation of a business listing building out a viable listing and on the NZX is $10 million. However, listed company. capital raising proposition. There the suitability of listing a company are, however, alternative routes While listing is an exciting in New Zealand is not necessarily to market, such as a direct listing driven by the size of the business milestone, there are a series (formerly known as a compliance or its capital raising plans. This is a of common misconceptions listing), which can offer a more personalised question, the answer and urban myths around dynamic and cost-effective for which is based upon the specific listing solution. what listing entails and what stage, scale and growth ambitions of options are available in a company. New Zealand. At NZX, we believe if you are an ambitious and focused company, the goal of listing is far more achievable than you may think. Time to bust some myths.

10 nzx.com Flexibility of direct listing How to save costs A direct listing offers greater Myth: Listing on Aside from NZX’s fees being flexibility to an aspirational listing the exchange significantly lower than competing candidate as it avoids the need to is too expensive exchanges. Direct listings save on raise capital. However, this route still broker and distribution fees, by virtue leaves open the opportunity to raise of there being no capital raised. new funds using the same class Furthermore, a direct listing only offer regime after a three-month Listing does have an initial expense, requires a listing profile document period, during which an issuer has however the potential rewards to be written as part of informing time to build its profile and network. as a public company are wide- the market of the listing proposal, as In some respects, this can be the ranging and long-term. Therefore, opposed to a full PDS. This has the best of both worlds. Pushpay, appropriate resource planning prior potential to be a shorter and simpler featured in this report, is one such to listing is essential. document, as it does not need to successful New Zealand tech In respect of an IPO, a business contain information relating to the company that came to market via will be engaging with financial offer of new shares. This can save on the direct listing route. and legal expertise as it begins its associated costs. listing journey, inclusive of running Separately, another driver for cost a comprehensive due diligence savings is having a good governance process and preparing the product infrastructure in place at an early disclosure statement (PDS). stage of the business. Being listed Brokerage fees will also be paid to on a private market and registry first the broker syndicate in the form of a (such as Syndex) can create and percentage of the amount of capital refine these disciplines and thereby raised, though it is important to save on valuable time and resource remember this is a cost against new further down the line. funds the business would not have otherwise acquired.

11 Dual listing In certain circumstances, a Myth: Being listed in Myth: If I am to build secondary listing overseas might be New Zealand means scale globally, I need to considered to build further presence overseas investors are unable list in overseas markets within these markets. For example, being able to raise capital in two to invest in my business locations, whilst retaining access to the New Zealand listed debt market, The experience of many of our can help diversify funding options. Overseas investment can be a key listed tech issuers is at odds with the Importantly, under the Trans- driver behind growth and scale, perception that overseas markets Tasman Mutual Recognition which can correspondingly facilitate is where a tech business should Scheme, an issuer can raise capital international profile and access list. In addition to our featured to new markets. However, it is a in both New Zealand and Australia. case-studies, businesses such as misconception to think that being The foreign exempt listing category Fisher & Paykel Healthcare, Serko, domiciled and listed in New Zealand also means that an issuer with two EROAD, Vista, Gentrack and AFT detracts from the ability to build that listings is not be subject to two Pharmaceuticals, have built scale overseas interest. compliance regimes. Compliance and profile overseas, whilst being listed in New Zealand. with NZX listing rules is recognised on the ASX and vice versa. Overseas investor As told by our issuers, the real key We do suggest, however, that ownership contributed driver to building and growing a 1 successful tech business is having the potential benefits of building to around 38% of a clear focus on creating a viable presence in Australia should be and scalable product solution for carefully weighed up against NZX listed equities consumers. There is no reason why some key considerations. These this objective cannot be fulfilled on include exposing the company in 2019. This is higher a global scale, whilst retaining and to a much more litigious than other major building presence in New Zealand. environment, additional listing and regulator fees, increased insurance international costs and other requirements. exchanges.

12 1 JBWere (NZ) Pty Ltd 2019, Equity Ownership Survey New Zealand 2019; www.jbwere.co.nz/media/ykzgga2c/jbwere-2019-equity- ownership-survey-final-publish-updated.pdf Myth: There is little Myth: The process of Myth: The compliance or no advice or guidance listing on the exchange burden of being a listed to support my takes too long company is far too great listing objectives

The time it takes to go through Becoming a listed company Come and talk to us! the process of listing has a wide coincides with important Our team at NZX is always variation and is dependent on the responsibilities focused on type of business, investors, strategy, protecting investors and keeping happy to have a confidential objectives (whether or not to raise the market informed. This a key discussion around your capital), as well as its current legal driver behind the trust that the requirements, and we will work and governance structures. public markets can help create. closely alongside you throughout As a very rough guide, an IPO can It is important to note, however, your journey to provide expert typically take 4-12 months, whereby that following the Listings Rules advice and support. a direct listing could be as little as review in 2018, there is now a 6-8 weeks. significantly simplified rules set, We are well connected with which was designed to enhance advisors, law firms and sources the understanding of the of capital throughout New compliance obligations, whist Zealand, who are able to provide retaining market integrity and you with specialised expertise strong investor protections. within their fields. Furthermore, Compliance costs have therefore we will also introduce you been reduced, by virtue of creating to our NZX Regulation team stronger alignment with legislation, (NZXR), who can provide expert lowering the amount of resource assistance on specific matters that needs to be dedicated to this important function. around pre and post listing.

13 Case Study Feature

To fully comprehend the growing success of Pushpay, you only need to look at the entrepreneurial mindset of the on tech company’s CEO, Bruce Gordon. His Kiwi ‘can do’ attitude saw and a the launch of New Zealand’s first internet merchant banking platform in the 1990s funded prayer from a stationary budget.

14 Testament to this is how Pushpay “We’ve moved from helped churches connect their congregations virtually through brick-and-mortar COVID-19, live-streaming services, maintaining connections and banking, to the maintaining the giving so vital to the work of churches in their desktop and now a communities. “Just because your church has closed super-computer in its door, it doesn’t mean you’ve lost your faith,” says Bruce. In some our back pocket.” cases digital reach has enabled a six-fold increase in attendance, and opened a new door for Pushpay to Pushpay’s name belies a company While it wasn’t the done thing in the demonstrate what’s possible. that is built around a big heart – US, the company’s founders had a with a focus on strengthening and sense of urgency and pushed on with Having a digital strategy is important expanding contemporary and good old Kiwi determination. Once whether you’re a retail clothing store traditional church communities on the ground, they starting listening or a church, and on top of COVID-19, alike, through digital giving and and learning the vital language of connecting to the younger generation engagement solutions, made simple “churchies” – which, combined with is a challenge many older, traditional and intuitive via an app. user-focused product design and churches are facing. technology, has been core to the And, in a world of tech-native “It’s not hard to rally a great team success to date. when you have a vision like ours, younger generations - who serving customers who build Pushpay has reported continued often strongly focus on giving to connections with communities,” strong growth, with total giving causes they believe in, creating a Bruce commented, speaking on volumes processed in the past simple app not only encourages what drives his team who help knit financial year topping US$5 billion. donations - but encourages repeat together and grow the congregations Revenues were up 32%, following giving. Appreciation is built in, with of nearly 11,000 individual church the trend over the past five years, Pushpay’s new “Thank You by Fund” customers in the US. and operating earnings (EBITDAF) feature allowing a specific note of increased 1,506% to US$25.1 million. appreciation to be sent to donors “Some of the biggest churches regarding the initiative or cause that would fill Eden Park every week,” Listing on the NZX in 2014 was an they supported. he says. At the other end of the instrumental stepping stone for scale to the modern gigachurches, Pushpay, helping give credibility to This small team, of less than 500 some are more than 100 years old “the crazy Kiwis with big ideas”, giving in total, has a big reach and a huge and may have congregations of their largest customer prospects ambition. Pushpay wants to be the fewer than 100. confidence from their due diligence best for their customers, and for and creating a sense of transparency. Bruce the energy and passion has Bruce admits it was audacious to to be driven from the core “creating have a vision from New Zealand This success story echoes the quality and enjoyable jobs for our of being the payment processing parable of the “The Wise and people” as they revolutionise the and community-building platform the Foolish Builders” – Gospel of future of churches one tap at a time. of choice for US churches. From Matthew 7:24–27, in that Pushpay’s his experience in the New Zealand rock solid foundation is the natural banking sector, he is used to place this technology has found at challenging the status quo. the hub of church communities. Bruce Gordon From the strategic fit of the mission- Chief Executive Bruce and the team at Pushpay minded Church Community Builder Pushpay ignored the prevailing wisdom that acquired in December 2019, to the “you couldn’t just go up to churches staff volunteering programme that and win them over”. extends the churches’ reach of generosity – this is a business with a higher purpose.

15 www.syndex.exchange Syndex: Helping transform Kiwi ideas to industry leading businesses.

Supporting the innovation Founded by three Kiwi The digital tools also provide and ingenuity of Kiwi entrepreneurs in 2014, Syndex efficiencies in communication, businesses, private capital looked to solve the issues that compliance and governance services limited the private market from to create stronger investments, with market specialist, Syndex is its true potential, eliminating the supporting functions for registry built on a promise to enable frustrations and risk that private management, administration, growth through access to investors face. compliance and investor relations. capital - bringing investors At the heart of the solution, That means for tech companies and businesses together. Syndex created an online needing to scale up at speed, the investment platform, providing platform functions allow for the infrastructure to support and ‘click of a button’ reports, facilitate private market investing, communications and compliance simplifying shareholder relationship – all drastically reducing distracting Mike Jenkins management and enabling easy administrative tasks. Founder & COO transacting for any proportionally- To date, Syndex has eliminated Syndex owned asset. many ‘blind spots’ of the private markets, opening up many interesting and innovative assets Ross Verry in the investor market. In 2019, the Chief Executive company raised over $30 million, Syndex predominantly from issues within this funding range.

16 “Nurturing Kiwi companies”

-Syndex

“Syndex has over 10,000 private market investors on its platform. In While the company began primarily This has been particularly evident in the commercial property and in the agri, medical, bio and food- primary sector, Syndex have tech sectors – with a quarter of the 2019/2020 year, increasingly expanded its focus into market offers in this sector, who are the tech industry. Syndex caters advancing robotic surgery, improving Syndex hosted 14 to ‘angel companies’ in the early farm irrigation, skin cancer detection stages of business, providing a devices and plant-based foods. independent capital stepping stone to raise capital and Kiwi ingenuity has allowed New find ‘smart investors’; mid stage raises introducing Zealanders’ to achieve amazing companies looking for growth feats over the years - especially funding, succession options or new over $30m into the within the tech industry. Syndex’s shareholders and more mature online investment platform not companies preparing to transition to private markets. only unlocks Kiwi potential at the the public markets. beginning of their business lifecycle, Private markets are now an integral but helps lay the foundations for Assets under part of the capital markets and future success, transforming Kiwi essential to the innovators and ideas to industry leading businesses. administration now entrepreneurs of the country. And, with the increased appreciation of exceed $3.3 billion the innovation and tenacity of tech companies working hard to solve big across over 200 world problems, interest in private market investing is on the rise. issuing vehicles.”

17 www.tin100.com GROWTH THROUGH INNOVATION

The word ’unprecedented’ The NZ tech export sector has Fortunately, as many tech has been used a lot this year, grown primarily because of companies achieved scale prior and for good reason. 2020 technology-enabled business to COVID-19, they not only began will always be remembered as models, rather than the technology to deliver metrics that could be opportunity per se. This has understood by any investor, but the year the world changed allowed companies to scale and exhibited qualities that set them because of a disease called become profitable with strong cash apart from non-tech stocks. In COVID-19. flows, which in turn has attracted particular, the ‘business as a service’ broadening interest from investors, model delivered high recurring, In the midst of the global turmoil – both economic and societal – it’s many of whom were previously predictable revenues, strong heartening to be in New Zealand reluctant to invest based on the cash flows, sticky customers, where our (mostly) effective technology opportunity alone. marginal cost of new customer acquisition, faster growth and management of the disease has Whilst total revenue for the TIN200 enabled our economy to start greater profitability. Companies (NZ’s 200 largest bouncing back sooner than it might technology exporters) grew by This move to profitability was almost have. While significant challenges 10% in 2019 to $12 billion, EBITDA prescient, in how it anticipated still lie ahead, investors should take heart from the significant (net income) grew by 16% and by a the cold winds of an economic opportunities that now exist here staggering 58% for ICT companies. slowdown and ensured these within our technology sector. Notably, listed companies led that companies either had balance growth, accounting for 25% TIN200 sheets or investor support to last revenue in 2019, but 45% of the the COVID-19 economic winter, of $1.1 billion revenue growth. 18-24 months that is expected.

18 Consequently the growth in market Kiwi investors are increasingly capitalisation of many listed TIN “In future, cloud voting with their wallets and being companies over the past 12 months, rewarded for it as our economy including the COVID-19 period, has computing morphs through the COVID-19 sea been extraordinary. In the 12 months change. The ultimate outcome of to 29 July 2020, the following companies will this will be to propel the tech sector to become the largest export sector share price increases for listed TIN in New Zealand. companies were observed; Pacific utilise AI (artificial Edge +289%, Pushpay +140%, That’s an outcome that’s going to F&P Healthcare +111%, +48%, intelligence) to have long-term benefits for New AFT Pharmaceuticals +30%. Zealand as a whole – both economic add even more and societal. Let’s make sure we This presents an immense don’t lose sight of that in the midst opportunity for the NZX, because of the current COVID-19 challenges. demonstrating that we can build valuable customer really big, resilient successful companies will attract more insights as the Greg Shanahan local and foreign investors in Kiwi Managing Director technology companies, and that will customer network Technology Investment ultimately propel the tech sector to Network become the largest export sector and volume of in New Zealand, transforming our *The TIN200 is the combined TIN100 and Next100 (1-200) companies ranked by economy as a result. data grows.” revenue in the annual TIN Report.

19 NZX Tech Report 2020

Conclusion Setting the sector up for success

Our analysis shows tech has the opportunity to play a significant role in New Zealand’s economic future, particularly with the impacts of COVID-19. To really get the best out of the tech sector we need to set them up for success:

20 If you can’t measure it, you can’t manage it – Sourcing data relating to the tech sector was like a treasure hunt, without the fun. Analysing the data was made even more difficult given the definition of what a tech company is varies significantly and the sub industry classifications are not consistent and don’t appear to align with the global classifications. To understand success we need to be able to measure, benchmark and monitor milestones and enterprise performance. All of this is really hard to do if there isn’t consistent centralised data. Key industry and enterprise performance data points need to be defined and consistently collected to ensure an appropriate measure of performance and success.

Turn the talent tap on – In order to accelerate and maintain growth within our Kiwi tech sector we need an agile and dynamic education strategy, with a strong focus on commercial rewards to entice and engage new talent. Rather than poaching our talent from similar industries, we should be focusing on channelling new ideas, being prepared to take risks and drawing inspiration from new talent and those with experience overseas. This will mean working hard to attract talent home, with possibilities to draw from initiatives used overseas such as ’s Thousand Talents Plan, which fund the best capabilities in industries to move home to China. By taking these measures, we will not only be encouraging growth within the sector but helping provide immediate relief in expertise. Home is where the heart is –

Let’s make sure we set up the appropriate investment platforms in NZ to empower scaling and growth. If companies want to seek overseas buyers and sell their companies that is their prerogative, but let’s make it hard for them to leave. We want our tech companies to have global relevance and scale in the global market, and at the same time we want investors to have the opportunity to recognise NZ innovation. The tech sector has contributed to more than 2,000 jobs in 2019. It’s about thinking global, benefiting local.

21 NZX Tech Report 2020

Any questions? Please just ask us...

Sarah Minhinnick Doug Vrame James Sharp Julia Jones Head of Issuer Relationships Senior Relationship Manager Senior Relationship Manager Head of Analytics NZX NZX NZX NZX M: +64 21 813 589 M: +64 27 298 3610 M: +64 27 237 1189 M: +64 27 524 8901 E: [email protected] E: [email protected] E: [email protected] E: [email protected]