Livestock farmers collectively across New Zealand have had their best financial year since possibly the 1960’s. It’s due to a combination of favourable weather, a low NZ dollar and commodity spikes caused by a range of factors. Some of which is pure luck.
A once in a lifetime financial year in a business is significant, and will trickle on for a few years.
It struck me recently that this is completely at odds to most other business sectors that are literally having their worst year in decades. There are a record number of liquidations over the past 18 months and I don’t see that easing any time soon.
However the biggest success in the Agri sector is a tech start-up called Halter which is taking the world by storm, being a game changer for dairy and now beef farmers on the ground. It’s not the most advanced or difficult piece of tech, rather a very good application of a number of existing technologies already in existence, coming together to solve some practical problems.
Halter is an excellent example of what we can create in New Zealand, and not just in Agri. The late Sir Paul Callaghan said 100 companies like Fisher and Paykel Healthcare would transform our economy. These high tech companies attract very smart people, pay very well, and can be highly profitable for the shareholders. Xero is another example. Halter is the next generation of these types of companies.
So what's next?
Well there are dozens of start ups right here in Aotearoa New Zealand right now working on some crazy new initiatives. As Sir Paul stated we are good at random stuff - always have been - unexpected and unpredictable. That's our Jam people.
Where we fall down is supporting these ambitious entrepreneurs with capital. It’s a fucken tough gig, and you need to be crazy to give it a go, and yet they do. Our problem in Godzone is that we don’t take failure very well, nor like Tall Poppies. FFS - these buggers can’t win. And so, many leave.
Meanwhile the support networks that central government funded are no longer. I’m not here to write a political blog. So………… I won’t.
However, there is a golden opportunity for Farmers to invest in a bunch of wickedly interesting, exciting and risky ventures. The key is not to invest in one winner, but many possibilities. Why would ya!?
Good question - thank you for asking.
There are many! From experience.
Firstly it’s a wild ride and exhilarating. You however, are not going to lose your farm. Because the amounts needed are miniscule to what you might spend on a new tractor, when you are doing it with others.
Plus it is going to grow your Social Intelligence by getting out the farm gate and mixing with dreamers from a different world. Understanding that farming is not the backbone of the country, but with your investment this might help grow a rib.
Not all start-ups are commercial focussed and the return is not financial.
Collective Intelligence got behind Dr. Amanda Evans and her ambition to create a Gold Standard for Paediatric Palliative Care in New Zealand. We curated an Incubator Team around Amanda and over a 9 month process of making sense of the complexities of delivery and honing the offering, we were able to attract three years of private funding for a prototype in the Wellington/Wairarapa area to test the model.
This I believe will become a nationwide service bringing more comfort to 280 families a year. This is a whole different type of return on investment.
Back to Sir Paul Callaghan’s dream for which I am a disciple. If Government is not going to support new business (is that a strategy) then fuck it, we are trying and going to try harder in our own small way.
So …… Kevin Whitmore is one of these Fintech Founders and very experienced, having worked within Callaghan Innovation (which is no more). When I was in conversation with Kev and sharing my frustrations he said he’s keen to get something off the ground with some trusted colleagues from his previous work. We both believe it’s not about bulk, but more targeted and making sure founders and investors are matched up accurately.
It’s not about Venture Capitalists (VC’s fuck off on this initiative) who want short term gains and will then sell the venture to an overseas corporate.
No! This is about long-term investment building capacity for new organisations to thrive. This is where Farmers would make excellent investors as they understand the long term!
Kevin is looking to do a road show in May, so keep your eyes open, people.
Photo Credits:
Photo by ThisisEngineering on Unsplash
Photo by corina ardeleanu on Unsplash
