Photo: RNZ / Angus Dreaver
A number of New Zealand's biggest tech sector companies are considering a listing on the stock market, but not on the NZX, according to large private investment firm Icehouse Ventures.
"Most of the companies that raise large dollops of cash are still doing so from private markets, including offshore investors, and are ultimately directing their energy and aspirations towards the listing in the US," Icehouse Ventures chief executive Robbie Paul said.
Examples of top performing New Zealand tech companies included pasture management software Halter, with half a million cows under management, Substack, which just achieved a billion dollar valuation, and self driving car company Nuro, valued at more than US$6 billion (NZ$10.3b).
Paul said these global companies do not need to list on the NZX to raise capital.
He said the NZX would need to do more work to convince New Zealand's fastest growing global tech companies to consider an NZX listing.
"I love that aspiration and I hope it's possible," Paul said.
"The next time a Kiwi company raises hundreds of millions of dollars . . . New Zealand as a whole, should say, well, we'll have half of that, right? And that'll be a really exciting moment."
Still, he said KiwiSaver funds and hundreds of New Zealand's private investors were able to take part in Halter's recent $155m capital raising.
He said the tech sector was having its best year ever, attracting a high level of investment despite the overall economic downturn affecting consumer and business confidence.
"We had invested more in the first half of this year than we had in any previous total year ever," Paul said.
"Fundraising has been very strong. Company performance has been very strong. And overall, despite malaise and the sort of broader ecosystem, I'd say the startup and technology world is in a great place."
Paul said Icehouse has been consistently investing in about 30 new companies a year, over the past eight years.
There was also a strong inflow of investor immigrants bringing capital and connectivity to the New Zealand venture ecosystem, which was increasing interest from international venture funds.
"Our data shows sort of a move from once a decade, to once a year, to almost once a month, that you can track international VC [venture capital] putting money into a New Zealand company.
"There's just more and more phenomenal stories of companies that have become really sizeable, led by Kiwis," he said.
"So the important thing is those serve as proof points to the next generation of founders that it is possible and it's worth working for."
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