An inside look at the US investment market

Investment Fix is a podcast series from New Zealand Trade and Enterprise (NZTE) for New Zealand companies in growth mode, needing to understand their investment options.

This season, host Dylan Lawrence dives into the US market, considering the opportunities it holds for New Zealand companies, what it takes to grow a business and build a brand there, and how to secure the funding needed to make it happen.

This episode features New Zealand investors Nadine Hill of Punakaiki Fund and Angus Blair of Outset Ventures. They share their insights from a recent trip to the US: the opportunities they found in the east and central US, how Kiwi tech companies can tap into the ecosystem that exists there, and the importance of being seen as a global business.

Here’s a ChatGPT precis for episode three or listen here.

The episode opens with Hill introducing Punakaiki, a $100 million fund focusing on high-growth tech companies. It also manages a cleantech fund dedicated to carbon emission reduction. 

She underscores their criteria for investing in businesses with ambitious founders, global niche dominance, and validated carbon emission reduction strategies. Blair describes Outset Ventures as a pre-seed and seed, deeptech investor focused on early-stage ventures across industries like aerospace, biotech and industrial chemistry.

The discussion touches on the diverse opportunities present in regions like the southwest US, highlighting concentrations of energy, manufacturing, defence and aerospace. The conversation delves into the well-established ecosystems in areas like cleantech and aerospace in the US, emphasising the need for New Zealand companies to identify specific niches where they can excel.

Cleantech is discussed as a progressive sector in the US, with a focus on New Zealand companies leveraging opportunities by establishing early partnerships and connections. The importance of finding gaps in the market and understanding how New Zealand technologies can fill those gaps is underscored. 

The podcast explores the collaborative nature of the US ecosystem and underlines the significance of industry, government, founders and investors working together – a model that New Zealand companies could benefit from adopting.

Hill and Blair emphasise the importance of New Zealand businesses being seen as global players from the outset, not just for US market entry but also for attracting investment. They advocate for a focused approach, urging companies to identify their niche and build defensibility before expanding.

The conversation touches on the New Zealand-US investment dynamic, with a focus on the role of local VC firms in supporting businesses through their capital journey. The importance of having substantial founder ownership and engaging with industry partners is highlighted.

The necessity of face-to-face interactions for building trust is stressed, particularly in the context of raising capital for deeptech ventures. The New Zealand brand is discussed, with suggestions on how businesses can leverage it to build their own presence in the US market.