It’s said all you need is one original idea and you’re set for life. But what if you’ve got a good idea already, or an existing product and the rewards just don’t seem to be arriving?
What might make all the difference is a larger market – in that case the Mecca of modern consumerism, commonly called the US domestic market, might be just the ticket.
Trouble is – it’s a tough nut to crack. Not only can it be costly to get products to US shores, but American consumers have a track record of not exactly throwing caution to the wind when it comes to experimenting with unproven imports.
So how do you test the US market waters without having to jump in at the deep end and risk drowning? Standing on the front line for New Zealand technology business start-ups on American soil is Kiwi Landing
Pad (KLP).
With many Kiwi entrepreneurs opting to take their business further afield, KLP offers something exclusive – a base in the heart of technology entrepreneurialism, the South of Market (SoMA) district of San Francisco, home to some of the world’s biggest industry icons including Twitter, Dropbox, Youtube
and LinkedIn.
Established for Kiwis, it aims to give businesses the best possible chance of success at an international level and, in turn, make a positive impact on New Zealand’s economy.
Established in 2011 by John Holt and Sam Morgan, KLP is a non profit organisation supported by distinguished Kiwi and US entrepreneurs including Sir Stephen Tindall (K1W1 and The Warehouse), Simon Holdsworth (Evander Management), Peter Thiel (Valar Ventures and Paypal), Phil McCaw (MOVAC) and Craig Elliott (a US based entrepreneur). It is also supported by the New Zealand Government through financial support from the Ministry of Business, Innovation and Employment.
Software giant Xero was one of the first businesses to have made the move to San Francisco and a string of other companies including Vend, NZTE and Eventfinder have followed suit. So who’s next?
Davina Richards talks to John Holt, managing director of Kiwi Landing Pad to learn more.
Positive impact
Originally from Christchurch and based in Wellington, John is an entrepreneur who co-founded HR technology company Sonar6 in 2006 which he sold to Cornerstone on Demand in March 2012.
Having previously worked in senior roles at multinational corporations including Xero, HP, IBM and ANZ Banking Group, he has experience across the board of industry and business, from business start-ups, computer hardware and software, to hospitality and security to name a few.
From his first taste of business when he sold lemonade to people on the bus at aged eight to a successful entrepreneur, John revels in the pace and energy he gets from working with other entrepreneurs with global aspirations.
San Francisco is a beacon for technology business start-ups and KLP was formed after a number of people expressed an interest in establishing a base for early stage New Zealand technology companies in the heart of the action.
KLP’s primary mission is to provide Kiwi start-ups with credibility, confidence and connections, giving the next generation of entrepreneurs a grand starting point.
“The main problem we looked to solve was the amount of time and distraction from business development that setting up a first office took, as well as the fact that office rental rates are extremely expensive in the area,” John says.
“Once we had set up the basics we realised that there was even more value potentially around bringing the local community and interest together through gentle curation, as opposed to forced networking. This meant putting a local manager in place and organising regular events and opportunities for the community to get together
and socialise.”
“A lot of great things have come from this so far – investors, mentors and general establishment of good useful relationships which drive business forward.”
With fierce competition in the US, finding customers, capital, rebuilding networks and understanding markets and customer requirements are common challenges faced by entrepreneurs.
“Any entrepreneur coming from outside this environment has a lot of catching up to do,” he says.
“From experience, building a business out in a country as competitive as the USA, so far away from your HQ, is a tough and lonely process. KLP can provide support around this to take some of the pain away.
“Or at least place the beachhead team in an environment where they have other Kiwi entrepreneurs around them to provide support and bounce around ideas, as well as helping avoid common cultural or business pitfalls and share networks.”
Entering the golden gate
San Francisco’s Silicon Valley is the undisputed HQ of key players and developments. If you are in technology, particularly internet/cloud based solutions, there is no better place to be in terms of learning and growing.
“Entrepreneurs from all over the world seek this area out because it is simply the best place to learn quickly about building your business, acquiring top talent and investment.”
Companies fronting up at KLP become part of an exciting network in a rapidly growing community of committed Kiwi entrepreneurs and local residents who support the growth of New Zealand business in the USA.
Ultimately, what emerges is a portrait of Kiwi entrepreneurs landing in a soft place which brings them together to establish relationships within the entrepreneurial community, attend conferences and events, share ideas, knowledge and experiences and have access to information and resources on living and doing business in the USA.
KLP has entrepreneurs up and running as soon as they land, with a physical address and 24 hour access to full office facilities.
“Networks and confidence are critical success factors for breaking into this market in my opinion, in addition to a great product and a kick ass team which can execute all the basic elements of a start-up
business superbly.
“Mediocrity just doesn’t survive long in the Bay Area because of the intensity of competition and making it challenging to break into the market,” he says.
“From San Francisco city itself, through to the San Jose about 40 miles away, there are literally thousands of entrepreneurs and smart people looking to acquire customers, hire the best talent and raise venture capital.
“Expectations around early stage companies are extremely high. The good news is that many customers are used to buying early stage solutions from start-ups in the Bay Area because of the concentration of such companies and the support they have around them, but the bad news is that it makes it tougher to get in front of the right people.”
The nuts and bolts
Although many Kiwi businesses generally tend to reach out to KLP through the website or an introduction from one of its sponsors, John says there is no strict criteria they follow to determine whether a company can be helped or not.
“A lot of our decisions are based more around fit in terms of our physical location, the types of skills, experience and connections we have within our networks and the type of product or service the company is looking to launch,” he explains.
“It is also dependant on their stage of business or idea and the specific things they need to understand, or questions they need to answer to launch their business in the USA. Many Kiwi entrepreneurs prepare for months beforehand or build their business to an initial proof of concept stage before entering into the market.
“Some are looking for more validation of their concept or idea to ensure it is possible to turn it into a business and, just as importantly, that it is not already a problem solved by existing technology
or companies.”
There are some entrepreneurs who are recognised for their high potential however, John explains that many still need to work through the fundamentals of creating an early stage start-up. KLP8 is a programme which provides selected entrepreneurs the opportunity to stay at KLP for four weeks to work on their challenges.
“Many of the answers to such challenges are easily obtained in the KLP community or geographic location, but it’s a long way from New Zealand.”
An entrepreneur by nature
John’s interest in business materialised from an early age when he sold lemonade to people on the bus which stopped outside his house when he was eight years old.
“My grandmother’s cousin was the driver – that’s called an unfair advantage. Since a very young age I’ve been fascinated by business, growth and wars. I have a degree in military history. Everything I do I try to learn from and succeed and make a lot of other people successful with me on the way,” he says.
“There is nothing like looking back and seeing something you created from nothing valued highly by others.”
He has a genuine love and fascination for all things technology, driving growth and New Zealand, where opportunities for development provide many challenges and rewards. He is a strong believer in smart committed people who are prepared to work hard to reach their goals “regardless of background”.
I ask what his advice would be for those people who have an idea but are unsure how to go about making it happen.
“The internet is a great leveller. Google will guide most web savvy, would-be entrepreneurs to the basics of presenting an idea and transforming it into a business model. A quick search will also generally highlight key competitors and useful people to talk to,” he says.
“I’d advise you try and think as quickly as possible around three key areas which you will need to demonstrate the right stuff:
1) Having the people capable of taking your idea and turning it into a business.
2) Being able to quickly demonstrate meaningful traction in terms of the idea’s merit and demand from the marketplace.
3) How you build a viable business model around your idea so that customers buy your solution for more than it costs you to make it and that, ideally, the more customers you have the more money you make. It seems simple, but so many ideas fall way short in these three areas.”
John was a judge at Startup Weekend Wellington for the first time earlier this year, a weekend-long event where entrepreneurs and aspiring entrepreneurs find out if their start-up ideas are feasible.
“Kiwi Landing Pad supports a number of Start-up Weekends. If the winners get far with their idea they spend free time in our facility in San Francisco,” he says.
“I thought the Wellington event was fantastic. The energy was unbelievable and I loved the fact that a number of teams had members who had come in from outside the core ‘tech’ world to educate themselves on start-ups or offer their services. Many of which were essential requirements for actually taking an idea and turning it into a viable business.”
Other than being actively involved with high potential companies, outside of work John stays busy with his family.
“I have five children and a beautiful wife which keeps life constantly developing and fun as we all grow up. Apart from spending time with my family I try to stay fit – mountain biking, running and a bit of yoga. I’ve been trying unsuccessfully to grow bonsai trees for the last 10 years with a very low survival rate.”
On a side plate next to KLP, John is involved with several high growth businesses both in New Zealand and San Francisco, including Generator, 90 Seconds TV, BIMStop, Commarc and Teknique, which he says have great traction, huge potential, great people and exciting market opportunities.
“Kiwi Landing Pad continues to grow the base from which many more Kiwi start-ups can spread their wings in the USA and beyond and I remain committed to helping grow and curate the KLP community.”
Cover Photograph by Brady Dyer of Brady Dyer Photography. www.bradydyer.com
