2015: The year in review

2015 has been a watershed year for the startup scene in New Zealand.  When I started this Startup of the Week blog in September, a number of people asked me, “are there really enough great startups in New Zealand to feature one every week?”  The answer is a resounding yes!

Had you asked me about New Zealand startups in 2010, I would have told you that there were patches of awesome, and things looked like they were just starting to come together. Five years on, things are really pumping, as evidenced by:

  • Thriving startup hubs in the main centres: Visit GridAKL, BizDojo, CreativeHQ, or The Greenhouse and you’ll be under no illusion that healthy and diverse startup activity abounds.
  • Entrepreneurial buzz in the regions: The BCC (Palmerston North), and Bridge Street Collective (Nelson) have been going from strength to strength for several years, and we’re seeing new players emerge in Whangarei, Tauranga, Taranaki, Hawkes Bay, and Dunedin.
  • Finally, the rise of Ag Tech startups: In prior years, there was a paucity of agricultural startups coming out of New Zealand. Now, with companies like Engender, CropX, BioLumic, eBee, and others, this sector which builds on NZ’s natural strengths looks like it’s getting to critical mass.
  • Meetups are mushrooming: I seem to be getting a couple of announcements for new startup-related meetups every month in Wellington. Startup Garage and Lean Startup Wellington how have over 1,000 members each. People are getting together, which is great.
  • Startup Weekends continue to thrive: There’s no shortage of newbie entrepreneurs starting their entrepreneurial journey through Startup Weekends. We ran 11 events up and down the country this year, with 736 participants – both records. Many of these participants are now fully plugged into the scene, some running their own startups, some working for others, and some busily hatching plans. And some qualifying themselves out, having decided they’re happier in their day jobs. Win.
  • Accelerator ramp-up: Lightning Lab ran three programmes this year – Auckland, Christchurch, and Manufacturing (Wellington). The dust hasn’t settled yet, but this is likely to have resulted in 10+ new startups achieving funding, networks, and a path to global success.  Oh, and another 10+ startups being qualified out after a short sharp experiment – to me that’s also an important success statistic. The Government R9 Accelerator broke new ground, and will be doing round two this year. Vodafone’s Xone will be opening in 2016. And there are others.
  • An explosion in angel investment activity: AngelHQ‘s Dave Allison told me that as at the beginning of December, not including any of the Lightning Lab companies, the club had 12 open investment deals. I can’t remember a time where there were more than 3 or 4 deals open at any given point in time. Given that nearly all angel club deals in NZ are now syndicated between clubs, I’m sure that the menu at ICE Angels, Enterprise Angels, Manawatu Investment Group, Venture Accelerator Nelson, and Otago Angels are growing in a similar fashion. Post-earthquakes, Canterbury Angels is also off to a great start. And there are a host of unofficial syndicates forming around the country too. There’s never been a better time to be an angel investor.

ICE Angels summarised the year’s angel activity with this nice Prezi – thanks guys!

Finally, I’d like to leave you with a quote from Victor W Hwang, author of “The Rainforest“, and cofounder of Global Innovation Week (HT: Andreas Stefanidis)

“Despite outward appearances, the Startup Movement is not just about startups. It is actually a deeper cultural shift that cuts to the heart of the human condition. It reflects a dissatisfaction with the way much of the world has gone for the last several decades. It marks a transformation in how we view our societies, how we convene our communities, how we create value together as human beings. It’s a counterpoint to the governing economic paradigm – what economists call neoliberalism – which has prized efficiency and productivity above everything else, even when it has corroded relationships that bond us together in our communities and social networks…

“Innovation is not a solo sport. It thrives in supportive, diverse, connected, pay­it­forward ecosystems. It dies in selfish ones. Building a startup – indeed, bringing any innovation to life – is hard enough already. The last thing you need is distrust, high social barriers, and cynicism from those around you. You need people who are willing to believe in you. Because human beings innovate together in teams.”

Thanks for your support this year, reading and spreading the stories of NZ startups going global.

If you’re involved in the startup scene, good on you for taking risks, sharing your energy, and pursuing your passion – you’re making the world, and New Zealand, a better place for everyone.

If you’re a bystander, a dreamer, or an armchair startup enthusiast, there are plenty of ways for you to get involved in 2016. Just contact any of the organisations mentioned above, and start forming the connections that will enable you to become part of the success story we’re all creating together of New Zealand as a global entrepreneurial powerhouse.

That’s it from me for 2015. Have a great break, and we’ll see you in February.

Engender

engenderLaser guided sperm.

Or, Star Trek comes to the farm gate.  A boost to dairy income. Reducing unnecessary culling of bobby calves. No matter how you look at it, Engender Technologies is very cool.

Here’s the problem. When dairy cows are inseminated with unprocessed semen, they produce roughly half and half males and females. Heifer (female) calves can fetch twice as much as bobby (male) calves on the market, in fact many bobby calves are culled from the herd.

Engender uses laser photonics to detect the mass difference between X and Y chromosomes, and sorts bull semen into male and female sperm. The sorted sperm is then used to inseminate cows to produce a much higher proportion of heifer calves, resulting in higher value for dairy farmers, and providing the ability to breed only from the top half of their herd with the highest breeding worth for dairy replacements. This should enhance the rate of genetic gain of a herd.

engender-how-it-works-2

Cather
brentEngender Technologies began when rockstar scientist Dr Cather Simpson, the Director of Auckland University’s Photon Factory, learned that being able to select the sex of calves was one of the five biggest problems facing the dairy industry. She worked with Brent Ogilvie‘s team at Pacific Channel to begin development a lab prototype sorter, the business end of which lives mostly on a single chip. Early results are promising.

The global market for sorting dairy semen is estimated at over USD 1.5B, and although there is one competitor, it is much less effective and more expensive than the Engender solution. The team is talking to major players worldwide, and has significant interest.

They’re currently raising an angel round to conduct IVF and field trials, and develop a commercial prototype.

I’d love to see more startups in New Zealand based on hard science that builds on our core economic competencies. Kiwis are good generalists, but we could be much better at capitalising on areas where we have very specialist skills. We have one of the strongest dairy industries in the world, and it’s great to see people like Cather and Brent taking the bull by the horns (and other anatomical regions), and commercialising our top-of-class science and technology prowess with our world-beating agricultural capability.