NZTE Foreword to 2023 TIN Report

28 November 2023

Michael Murphy | Head of Tech & Services | New Zealand Trade & Enterprise


Kia ora. Te Taurapa Tūhono | New Zealand Trade and Enterprise (NZTE) is proud to support the 19th TIN Report, a vital benchmark for tracking the exciting progress of Aotearoa’s tech sector. As the agency driving international growth for our companies, we celebrate the sector’s role in boosting New Zealand’s exports, innovation, and productivity.

Tech continues to be our second-largest export sector and is central to the creation of a more inclusive, sustainable, and productive economy. TIN200 companies are increasingly bridging demographics and regions, while maintaining a low carbon footprint and offering wages more than 30% above the national average.

At NZTE, we work with the majority of TIN200 companies, providing services to accelerate their export success. We act as growth partners, helping refine value propositions, develop strategies, and optimise sales and marketing plans. We assist our customers in accessing funding programmes, connecting to international experts, and securing capital for growth.

I am continually inspired by our courageous and ambitious tech exporters and the exceptional talent that thrives here. This talent empowers our companies to overcome challenges, seize opportunities, and deliver the remarkable growth reflected in this report.

Post-pandemic, our exporters have reconnected with a digitally transformed world. The rapid embrace of online platforms, innovative business models, and flexible work arrangements has paved the way for new opportunities. These opportunities are not only enhancing efficiency and transforming the way our companies operate, but also enabling them to offer innovative solutions to their customers and drive growth.

It’s fantastic to see TIN offshore revenue up 13.1% to $13.0B. The five-year compound annual growth rate (CAGR) now stands at 10.3% and continuance of that rate would see tech’s offshore revenue around the $21B mark by 2028.

North America, our fastest growing region for tech sales, now stands at $4.2B – nearly a third of the total – with impressive year-on-year growth of 19.4%.

Meanwhile Australia and Europe, have now clicked over $4B and $2B respectively, with Europe showing an impressive 11.6% growth and Australia a solid 10.5% growth.

While our tech sector is thriving, it is also grappling with several challenges. Talent acquisition and retention, although less acute than a few years ago, persist as concerns. Sustainability presents both challenge and opportunity: New Zealand’s clean and green brand image is an asset to our exporters but requires the adoption of genuinely sustainable practices. Rapid AI advancements offer huge potential benefits but also bring data privacy, security, and ethical dilemmas.

Our companies also faced challenges in raising capital in FY23, as the number and value of deals dropped by around 30% compared to FY22. Lower valuations have seen funds preserving capital for follow-on funding and more companies seeking bridging rounds or smaller capital raises while they wait for markets to stabilise.

Most rounds in New Zealand were led by domestic investors, who have been relatively more resilient as their historical investments have not been at the lofty valuations of international portfolios. While it is taking longer for companies to secure funding and valuations are no longer at prior levels, companies executing well continue to successfully attract high-quality investment.

The NZTE pipeline showed a preference for deeper technology sectors, such as cleantech and advanced SaaS powered by AI and machine learning. The funding rounds were similar in size and stage to previous years, with growth companies seeking global expansion.

I’d like to extend my heartfelt appreciation to the dedicated TIN team for their unwavering commitment in compiling the 2023 report and offer my resounding congratulations to the courageous and ambitious companies comprising the TIN200. I’d also like to thank all those working across the New Zealand ecosystem, who are contributing to the global success of our tech sector.

Kia māia! Kia ngākau nui.


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