Greg Macpherson: Founder of SRW Laboratories & Pharmacy Direct

Posted on 3 Jul 2026 in Featured, Podcast

Greg Macpherson: Founder of SRW Laboratories & Pharmacy Direct

Join Paul Spain for a conversation with Greg Macpherson, founder of Pharmacy Direct and SRW Laboratories and a pioneering figure in New Zealand’s pharmacy, supplement, and longevity sectors. From building Pharmacy One and pioneering online pharmacy ventures to advancing biotech innovation and longevity research, Greg shares lessons from decades of business growth, disruption, and reinvention. Learn how he identified emerging opportunities, navigated setbacks, built science-backed brands, and stayed ahead of changing consumer trends.

Greg also explores the future of health, wellness, and longevity, and what it means for business leaders, investors, and consumers.Packed with practical leadership lessons and strategic insights, this episode offers valuable takeaways for anyone interested in building resilient, future-focused businesses.

Special thanks to our show partners One New Zealand, Outrun Global and Gorilla Technology.

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Paul Spain – CEO, Business & Tech Commentator, Futurist

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Episode Transcript (computer-generated)

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Paul Spain:
I’m Paul Spain, futurist and chief executive at Gorilla Technology. I love contributing to the success of individuals and their organizations. The New Zealand Business Podcast is all about this through helping you learn from our most incredible leaders. In this episode, I’m joined by Greg Macpherson, founder of Pharmacy Direct and SRW Laboratories. An author, biotech entrepreneur and pioneer in healthy aging, Greg has spent more than 30 years building businesses and at the intersection of healthcare technology and science. From launching New Zealand’s first online pharmacies to leading biotech ventures tackling one of humanity’s biggest challenges, ageing itself.

Paul Spain:
New Zealand Business Podcast is proudly brought to you by One New Zealand alongside Gorilla Technology, making tech enablement and cybersecurity easy for mid size and smaller businesses and by Outrun Global remote staffing to help your local teams work smarter, not harder.

Paul Spain:
Greg Macpherson, great to have you on the New Zealand Business Podcast. How are you today?

Greg Macpherson:
Doing great, Paul. Great to be here.

Paul Spain:
Fantastic. Well, always like to start at the beginning. So tell us a little bit about where you grew up and what life was like in your childhood years.

Greg Macpherson:
Yeah, so I grew up in Otaki, which is on the Kapiti coast, small town. I think There were about 3,000 people there when we were growing up and it was an amazing small town with the Tararuas on our doorstep. So we would spend a lot of time playing up in those mountains. And yeah, we went to Otaki College, a fantastic institution if you will. And then at 18, packed my bags and went down to Dunedin University.

Paul Spain:
Fantastic. Now, looking back on those childhood days, any particular things that sort of stand out, that shaped you, that you really enjoyed and you can maybe see sort of connections to the rest of life.

Greg Macpherson:
Yeah, definitely. I guess the entrepreneurial streak was there right from the beginning. I think we would. In fact, even when I was. We spent three years while in Christchurch around five to seven, four to seven. And I remember my father had a magazine that he published, Good Wings magazine. And you know, any of the spare copies, I’d rustle up and take them down to school and sell them.

Paul Spain:
Oh, really?

Greg Macpherson:
Yeah, yeah. So and then there’s.

Paul Spain:
Did he know about that?

Greg Macpherson:
Yeah, he knew. He was, he was Complicit, but it was a no cost of goods and all the pocket money for me, so it was good. And then do recall down at the local dump in Otaki there was a banana, banana passion fruit was growing wild and we packed that up and sell that. Yeah, dubious quality, of course. And I do recall going around all the shops in Otaki and those that had accounts with people. I said to them, basically, I’ll take your accounts and deliver them. And so I would go around on the 20th or the beginning of the month and collect all of their invoices and then sort them all out, jump on my push bike and spend a day off school earning a little extra pocket money.

Paul Spain:
How old were you?

Greg Macpherson:
15. Plus mates.

Paul Spain:
And what do you think gave you that idea? Is that something you had sort of seen in family business or you’d been aware that that was maybe a challenge for.

Greg Macpherson:
Yeah, no. Look, I’m not quite sure what strange genetic influence caused that or drove me to do it, but I’ve just always been really interested in, I guess, ideas and business and stitching it all together.

Paul Spain:
So how did that play out when you went to university?

Greg Macpherson:
Actually had quite a reasonable amount of money while I was at university. So I actually just probably spent, didn’t have to raise any money. So yeah, I just enjoyed study and the social life.

Paul Spain:
Yeah. Okay. What was the, the thing that, you know, caught your attention from a study perspective? How did you, how did you, you know, decide, you know, what to study?

Greg Macpherson:
Yeah, so I’ve always, I guess, been good at science and I’ve always wanted to help people and within my, I guess, environment, within Otaki the pharmacist looks like a pretty interesting thing that I could do both those things and that was apply science, talk about it and help people. So that really drove the, the decision to head down to Dunedin and apply for pharmacy school and, and really it’s been a mix of business and pharmacy ever since.

Paul Spain:
Yeah. Okay. And you know, how did you find university since you were, you know, I guess you had your entrepreneurial kind of leanings there in the background. But you enjoy the social times. How did you balance the sort of study and the social?

Greg Macpherson:
Yeah, look, I think at times it was more towards social than study, but applied myself where I needed to and I mean, I still had, I guess, commercial ideas sitting around in my mind, but they were very, very early and not particularly well formed.

Paul Spain:
This was the sort of late 80s you started studying.

Greg Macpherson:
That’s right. 88. I was at Dunedin and therefore, I guess for four years doing the pharmacy degree and then stayed there for an extra year as an intern, which is required before you qualify as a pharmacist, and then stayed on for a few more years. I had a couple of brothers that came down to Dunedin as well, so just enjoyed hanging out with them and having a role and some actual money at the time. But no, it was, it was a. You know, every time I go to Dunedin it feels like coming home. It was just such a great experience and such a great town with a whole bunch of like minded people.

Paul Spain:
And what were the first things that you, you got stuck into in terms of initial work before you ultimately started your own thing?

Greg Macpherson:
Yeah, yeah. So I qualified and spent a couple of years as I said and then I went home for a year. My father wasn’t particularly well so I went home and was the local pharmacist there. My wife’s a pharmacist and so. But a couple of years behind me so she completed her internship in Hamilton and then we went and tried to get jobs in the same parts of the country and so we, we’d go to Nelson and we’d both apply. I’d get something she didn’t or we’d go somewhere else and she get it, I wouldn’t. And so Auckland was the natural place to come just because of the nature of the bigger market. And I was here for around about nine months before settling on an idea and starting a business.

Paul Spain:
Yeah. So walk us through starting your first business.

Greg Macpherson:
Yeah, so it was a business associated with starting providing services to residential care, so hospitals and people like IHC in the community and mental health patients. So it’s about delivering our customised service for high need patients and it was about how do we improve the safety for these clients. So we were early adopters of Medeco Pack which is a blister pack people may have seen that some people get with their medicines. Now these days it’s mainly robotics that will pack your medicine. But back in the day we would go and talk to a rest home. We delivered a very, very bespoke specialized service and generally would pick up that business. So we built that business, it was called Pharmacy One. Up to the largest dispensing pharmacy in New Zealand over a decade.

Greg Macpherson:
Brought in robotics for the first time and eventually sold that to Greencross which is a large pharmacy group. And in parallel I started Pharmacy Direct and that was a kind of a designed initially because Viagra, which just come on the market and it was a little embarrassing and brown paper bag sort of stuff and a Lot of people preferred to post in a script and get it delivered by courier rather than perhaps pick it up at the local pharmacy where you might be playing tennis with. Whereas I guess these days the stigma around it is a lot less. But in our heyday, if you will, as we can talk about, but we were selling about 60,000 tablets a month.

Paul Spain:
Wow. So looking at the pharmacy, one business there, that was what, 96 that you started that. Did both you and your wife go into the business? I mean, how did you work out the right way to resource that and to get it established? Obviously, know there was, there was considerable success there to, you know, get, get to a point where you were able to, you know, sell that, sell it on. And there was that interest. But, you know, what, what was the, what was the journey like? Was it all roses?

Greg Macpherson:
A lot of. Not at all. A lot of, a lot of naivety, Paul, and, and, and, and that, and, and started well underfunded. And so it meant many, many hours where I was working both in the business and on it, and a very challenging business as well, especially because when you’re delivering blister packs into rest homes and you only need to get one tablet wrong and those blister packs and it’s a problem. So that’s a very complex business in respect to that.

Paul Spain:
And you talked about safety being one of the opportunities that you were solving. I mean, what was that safety

Paul Spain:
risk

Paul Spain:
in reality out there?

Greg Macpherson:
Yeah, well, before the PACs came along, the nurses on the ward essentially would be giving medicines out of bottles for each patient, and there’s a huge opportunity to get things wrong in that environment. So the step change was that we were dispensing it and putting extreme checks across it, but it was also significant time saving for those, for those nurses as well. So they were to get around, perhaps done in half the time. And so that’s a big unlock for a facility who’s with a lot of patients, and so they could improve their care as well. So it was a business built around systems and processes, but challenging because, you know, I think we, we got up to a team of perhaps 12, 15 pharmacists, and if one of those people had a bad day, then I’d get the phone call and it was on me if something was wrong. So robotics were a huge advance on top of the blister packing.

Paul Spain:
Right. So tell us what would go wrong. An example of what was the worst phone call that you took?

Greg Macpherson:
The worst phone call we took was a delivery driver who gave a wrong pack of medicines to A mental health patient. And he took those medicines and didn’t react very well for them to them and became quite violent and fortunately no one was hurt, but it was just absolutely horrible. Quite an unbelievable story as well in that we were having a meeting with the family about it and, and the father took me aside after and said, we’re not going to take any action. And weirdly, about six months before, if you don’t remember the old inorganic waste we used to put out once a year, well, this particular chapter drove past our place and I waved him down and says, I’ve got a heater and a dryer and a. The garage and would you like it? And that was the dad crazy. He remembered me from, from that. It was, it was quite, quite bizarre. But, but anyway, needless to say that that was an extreme version of what can go wrong.

Greg Macpherson:
And it was, it was absolutely horrible.

Paul Spain:
And, and how, how did you deal with, you know, with that situation and, and others like it? Did that make you feel like you didn’t want to be in business or did it, you know.

Greg Macpherson:
Yeah, look, definitely there were days where you’re sitting there and just going, why am I doing this? Absolutely. You just have to deal with the situation and deal with it the best you can. And generally it’s about fronting up, taking responsibility and reviewing what went wrong so that it doesn’t happen again. And so that’s. And yeah, we got good at systems because of some of those issues.

Paul Spain:
So was that a labeling type issue that. That had gone wrong or was it.

Greg Macpherson:
It was the driver literally just got it wrong. And so, and so with that we, we built a delivery platform, if you will, that meant that there was less chance of that happening.

Paul Spain:
Right, so you had your own, your own drivers as part of that?

Greg Macpherson:
Yes, yeah, that’s right. Well, it was a relief when we sold the business for sure. It was a very complex business. And so on retrospect, you know, simple is probably better in business. And that was a very complex, challenging.

Paul Spain:
And so you walked away with what, 10 mil, 100 mil? Tell us the how that played out financially.

Greg Macpherson:
Yeah, look, it didn’t play out.

Paul Spain:
Sorry.

Greg Macpherson:
That’s okay. No, we sold it and we. It was a very difficult time because we actually sold it and still owed a million dollars. So it was challenging. And what caused that was an accountant, which wasn’t. Who wasn’t particularly helpful. And also some changes to the dhp, the way they funded medicines at the time. So it was, when I say it was an exit, it was probably more force than and then an excellent outcome and pretty hard because, you know, work 15 years and that’s not the result that you anticipate at all.

Greg Macpherson:
So. No, I guess pretty disheartening, but you learn a lot through that sort of thing. And we were left with Pharmacy Direct, which was, has had basically paid that back and more over the, over the last decade or so.

Paul Spain:
Yeah.

Greg Macpherson:
More recently been challenging, of course, with Chemist Warehouse coming to town. A lot of pharmacists are feeling the pain of that. But it’s been, it’s looked after as well.

Paul Spain:
Yeah. Yeah. And how did the two sit side by side, Pharmacy One and Pharmacy Direct? Because Pharmacy Direct came along, what, a year or so into. Into the Pharmacy one journey.

Greg Macpherson:
That’s correct. Yeah. So we, I guess film. I’ve never been able to just get bored. I guess that’s the. Is the answer. Right. So it’s about, you know, what else can we do to diversify and build.

Greg Macpherson:
So 1997 it came along. So we were 30 years next year. And we, we, we, it was, we did it in parallel essentially. And we used the infrastructure of the pharmacy. We had an online, sorry, a store in Penrose that was at the front of the rest home, closed pharmacy, and we ran them separately, but together.

Paul Spain:
And how strong were the synergies? How well did that work versus if you’d had two completely different businesses and different spaces and so on?

Greg Macpherson:
Yeah. So the Internet was fairly nascent at that point. So it was really, really early and probably too early in terms of the business. So we having Pharmacy One allowed us to build Pharmacy Direct, essentially. And there were, you know, days where it was an exciting because we got an order. Right. So there’s just no way we could have done that independently. So we just grew organically.

Greg Macpherson:
And it was extremely slow to start. We didn’t have copious amounts of capital to throw at marketing. So we just, we grinded it grounded out.

Paul Spain:
And how did that story change over time as the online world, you know, really became the norm? E Commerce, you know, became a lot more, A lot more commonplace.

Greg Macpherson:
Yeah, it was a, it was a thing of beauty, Paul. Like it, it just grew and grew and grew. So we, we, when we sold the pharmacy, we, we, we had another. We had two pharmacies, one in the, on the North Shore, one in Penrose, the residential care one sold. We shifted everything up to the North Shore and just about every other. On every quarter we would take another store worth of room and grew it quite significantly over a period of time. And that came from actually the singular focus of just the online and getting particularly good at it.

Paul Spain:
And you talked about systems and processes technology. How did all of that fit together? Do you have robotics continued through and in that business also?

Greg Macpherson:
No, no. So we never got quite to the scale of robotics back in the day, but certainly we’re talking thousands of orders a day and it was manually picked, packed, stocked, etc. But the Internet was ascendant, if you will, and so we certainly rode the back of that. And, you know, there was a reasonable bit of competition as well. Pharmacy typically is relatively competitive, but over time certainly created a lot of space between us and players number two and three.

Paul Spain:
And why do you think that was? What were you doing differently?

Greg Macpherson:
We were working a lot with suppliers, we were starting to invest in the platform and we were extremely focused. So I think those are the things that allowed us to arrive.

Paul Spain:
And did that focus sort of dramatically change when you exited from Pharmacy One? Did that give you a lot more time to just double down and, you know.

Greg Macpherson:
Yeah, exactly that, yeah, yeah. And I wasn’t working full time in the business at that point. I had a business partner who was. And when we sold Pharmacy One, we, we didn’t. The Pharmacy Direct wasn’t big enough for both of us, if you will, in terms of both drawing a reasonable living from the business. So that’s when I. Well, we both said, look, let’s just go and see what’s out there and whoever gets a role first, we’ll take that and whoever doesn’t takes the leadership of Pharmacy Direct. And I picked up a consultancy role with Mito Q that was about six weeks after, and we’d sold Pharmacy One and so I started working there part time for the first year and then full time as CEO.

Paul Spain:
So tell us a little bit about that business.

Greg Macpherson:
So MitoQ is a super interesting business. It came from a discovery at Otago University where a couple of scientists worked out how to target molecules to mitochondria. And mitochondria are your cellular batteries and they generate all the energy that your cells need to operate. And when they don’t work so well, then it’s associated with certain health problems. So Parkinson’s disease, Alzheimer’s, diabetes, all sorts of problems. And it can be either that the mitochondria cause a problem first or the disease causes some problems with the mitochondria. So the. This was roundabout.

Greg Macpherson:
When I was at university, actually, it was a little after, it was the turn of the century, just 1919, late 1990s. And so this discovery was quite groundbreaking. They discovered this molecule, we’ll call it Mitoquinol, which is a, essentially an antioxidant that’s targeted to mitochondria and set about investigating what utility it might have, because it topped up the antioxidants inside your mitochondria and kind of got the batteries tuned up a little bit better, which meant more energy for your cells. Fantastic. And so they, they, I wasn’t involved then, but they raised around 30 million US and they did a clinical trial for Parkinson’s disease. And unfortunately that, that trial didn’t work. And I think, you know, if it was this molecule was discovered today, they might not have chosen Parkinson’s. Because when you develop Parkinson’s, all the damage is already done.

Greg Macpherson:
You need to be working perhaps 15 years before the disease manifests to protect yourself from it. So that business got an injection of capital and decided to repurpose themselves as a supplement company. That’s when I got involved and was essentially employee number one and spent the next pretty close to seven years building that brand, building the team and building awareness around the benefits of looking after your mitochondria. And that was a lot of fun.

Paul Spain:
Yeah, yeah. And where did that take you? What were the highlights for you of that time and what were the challenges? Because this wasn’t your business. Right. So this is a little bit different. You’re taking your entrepreneurial capabilities into, into something else. Were your shareholder at all or no skin in the game other than, you know, what, what you got as, as the chief executive?

Greg Macpherson:
Yeah. So I had a, a small clause in my contract around a carve out if they’d solved a business while I was there, but that, that didn’t happen. Highlights, I think, is this the travel. Right. Getting to conferences, meeting interesting people, talking about what we were doing, raising awareness and just the community of people that would feed back to us. I’m quite driven on how much I can help people. And we were getting some amazing stories back from people who had reasonably significant illnesses and reporting back that they were having huge benefits. Multiple sclerosis is one.

Greg Macpherson:
We had one chap who was in, in Scotland who had family out here. He had multiple sclerosis so badly that he was pretty much bed bound and he was able to, through Mitoquinol, get on a plane and come and visit his cousins. And he made it, he made a point of coming to see us and when we first saw him, he came in with a little joystick wheelchair and the next time I saw him, he walked in and yeah, it was incredible. And so that’s why I get out of bed is to have that impact. And it’s, and yeah, those are the highlights. What was tough, getting a brand started is really tough and we had a pretty challenging board who was certainly very focused and possibly didn’t speak the same business language that I spoke. So that was definitely a challenge. But you know, we persisted, got it sorted and overall had a very successful time and that brand has gone on to do some really great things.

Paul Spain:
Yeah. Touching on the board side, what did you learn there in terms of, you know, how you would, how you would steer things differently in future, how, how you would, you know, get, get the less, less painful experience.

Greg Macpherson:
Yeah, so, so health has got its own vocabulary, it’s got its own, I guess, drivers and that can be quite different to perhaps an accounting or a business driver. And they do need to marry up beautifully for a business to work well. And so the balance was probably there with someone who could understand and translate health and consumer benefit and working with some fairly well experienced board and finance experts. What I’ve learned, well, I mean it was I guess an MBA in how to start a brand and, and, and, and build one. And so you’re incredibly grateful for that experience and all of the, the challenges were really learning opportunities for sure.

Paul Spain:
Yeah, yeah. And, and any, any, any tips on how to, you know, make the, make the most of your board relationship, your relationship with the board and, and you know, make that work in both directions.

Greg Macpherson:
Yeah, look, I think it’s just communication. Right. I think and, and I’m a, I guess there’s a difference between I guess an entrepreneur and I guess the seasoned campaigners who have been in large businesses before. So there’s got to be some good alignment there, otherwise you will run into troubles. But no, certainly they taught me a bunch.

Paul Spain:
Yep. And you did some work with the warehouse as well.

Greg Macpherson:
Yeah, that’s right. That was way back with pharmacy one in the days and the warehouse was interested in adding pharmacies to the big red shed, if you will. They saw that as an opportunity. So yeah, we pitched for I guess a contract to work with them and I guess set them up and guided them and grew those businesses and I guess co owned the pharmacies with them and we, I guess gave it a really good bash. But in the end it just wasn’t the right place for a pharmacy to sit at that point in I guess, the retail history, if you will. And I think nowadays again, possibly it could be, and the chemist warehouse is a great example of that. They’ve done it particularly well, and of course, you’ll see your pharmacy in the supermarket now. So that was what we were set out to achieve and we were perhaps a little early.

Paul Spain:
Yeah, yeah. When you look at. Look at that, you know, I guess, yeah, there were, there were, you know, a number of different aspects to that business. But this was, what, a joint venture with Pharmacy Direct.

Greg Macpherson:
Yeah, pharmacy. It was called the warehouse pharmacy or Pharmacy at the Warehouse. So we didn’t have any branding as such. It was a standalone. Yeah. Worked with a gentleman called John Genet who’s, I think, still working or has been or is part time with the Warehouse. And it was really, again, another learning experience as we looked at how you would build out the corporate structure for a pharmacy business.

Paul Spain:
And what would you say are the takeaways in terms of partnering and other aspects of that time?

Greg Macpherson:
Yeah, look, I think I’ve. Over the years, I’ve looked really hard at that question. I think what I’ve learned is that with any vertical, there is some big fish and there’s a lot of little fish and you really should be looking at wherever you’re interested at understanding where the value chain lies and who’s making the most money out of that vertical and. And possibly retail pharmacies. It’s more of the smaller fish side, which is absolutely perfectly fine. But if your ambition is perhaps slightly more, then you would spend more time looking at how you can fit into that sector and playing at perhaps a higher level, which has driven, I guess, where I’ve got to now. But I’m a slow learner and it took me a wee while to fully understand that. So rather than going for scale and with perhaps challenging retail margins, it’s possibly, well, it depends who you are.

Greg Macpherson:
But for me, a better place to place within more of a brand or an ownership of a supplement or a pharmaceutical. And that’s a lot of. That was my learnings from Mito Q.

Paul Spain:
Yeah, definitely some, Some great takeaways there. Now, you exited Mito Q, what Was that, about 2019?

Greg Macpherson:
Yeah, that’s right.

Paul Spain:
Walk us through that.

Greg Macpherson:
Yeah. So I got fired, which was not expected. I wandered in to catch up with the, the, the chap I reported to and he just said, yes, Greg, it’s time for you to go. So that was a bit of a shock to the system because I thought that I was doing a reasonable job. We’ve got some great results. But I do understand, on reflection, businesses change and I’d got it to a point, perhaps needed a new skill set to come in and take it to the next level. So that’s how it rolled, essentially. So, yeah, good company and a bit of a very short, sharp breakup, if you will.

Greg Macpherson:
But again, really grateful for the opportunity to work with them and, and great to see what they’re doing now as well.

Paul Spain:
So how, how did you deal with that at, at the time? I mean, you know, any. When you, you know, when you’ve got your own business and you lose a client, you know, that can, that can hit you. But you know, when, when you get, when you get kind of kicked to the curb from an entire role, you know, what did that do for you in terms of headspace and so on?

Greg Macpherson:
Yeah, I just didn’t know what I was going to experience. I thought perhaps I was going to get depressed or like, what was. I just didn’t know. Right. It was like, okay, I’m gonna. Whatever this is, I’m going to experience. And the first month was, you know, like, what the heck has just happened? And just being busy, running around, doing odd jobs around the house that I hadn’t got to for the. The longest time.

Greg Macpherson:
And by month two, I’d sort of gone fishing a couple of times and played a bit of golf. And that was like. I was kind of like, hey, this is okay. I’m kind of. I’ll work things out in month three. I suggested to my wife, she earns a little more so I could keep doing this.

Paul Spain:
And what was the response?

Greg Macpherson:
Yeah, that wasn’t. Didn’t go down particularly well. So, yeah, Paul, we was really where the idea of saw kind of popped front and centre. I was in the background looking at what was happening offshore around longevity and health and looking at the trends and spending time in the longevity chat rooms with all of the biohackers and so on, really just starting to understand what was happening because I, I kind of knew the language and I didn’t know what I was looking for, but I just knew that there was something that was going to materialize. So I stumbled upon a paper called the Hallmarks of Aging. And this is quite a breakthrough paper because it set out a framework of what drives aging at a cellular level. And, and I guess with my pharmacist and what I just learned with Mariq, I kind of synthesized it and went, well, these aren’t just drivers of aging. These are targets that we might be able to put molecules in to intervene or change the speed at which they decline.

Greg Macpherson:
And that was the insight really that created the next business. And it was really about looking up all I’d focused on for the previous seven years were just these cellular engines like mitochondria, day and night for seven years. And looking up, it was like, wait a second, there’s more to just the engine. So if you took your car in for a service, all they did was sort your engine out and didn’t look at your brakes or your window wipers or the lubrication, whatever, then you wouldn’t be very happy. So we really do need to look at cellular health at I guess a 40,000 foot level. And understanding using that framework was really important. And the best analogy I have is back in the 100 years ago, 150 years ago, if you got sick, it was because you had bad morals or you hadn’t given the right gift to the right God or whatever. And then someone kind of cracked the code and went, wait a second, it’s these little bugs that are causing the problem.

Greg Macpherson:
And so that triggered a different. That’s a framework that then allowed the invention of penicillin and then antibiotics. So this framework is very similar. It’s almost like the germ theory of aging. And that framework is being developed as we speak and we’ve built products around it. And when you do target the hallmarks, you can slow the aging process down.

Paul Spain:
So during that window from exiting MitoQ, what else did you get up to? Sort of before I guess formally kicking off sr, SRW did some other bits and pieces. You written a book in there? That’s right, yeah. Just tell, tell us a little bit about that.

Greg Macpherson:
Yeah, so the best way to learn something is to write about it because you’re forced to go and dig deeper. And so that I wrote something called Harnessing the nine hallmarks of aging to live your healthiest life. Because there are so many insights in that paper that everybody can benefit from. And you know, there’s so many things you can do from a lifestyle perspective. There are supplements that you can take. And it was, I guess, an attempt to diffuse that information out in a much more consumer friendly manner. And so that’s. And in the process of that really crystallize what, what this, what I was trying to do and what sparked the idea and then crystallized what, what the next venture was.

Greg Macpherson:
And so incredibly painful, but good process to go through. And, and from it came SRW Laboratories. And in our first products, we’re very much targeting the hallmarks of aging. And I was looking in the periphery and there were drug companies out there and they’re all working on this as we speak, but they were typically focusing on just one lever and the most common one that we’re seeing right now is something called senescent cells. These are zombie cells. And what they do is you have a cell has a certain amount of divisions it can do before it’s kind of done its job. And what it does typically is it releases inflammatory molecules and the immune system comes in and kind of recycles that cell and replaces it with a fresh one. But as we get older, we’ve got more and more cells that are kind of running out of steam, pumping inflammatory gunk into our body.

Greg Macpherson:
And the immune system at the same time is getting a bit tired and it doesn’t just can’t keep up. So typically as we age we get more inflammation and that’s part of the reason, that’s what drives it. And it turns out these senescent cells can actually be identified. And there are molecular switches that you can trigger which cause them to self destruct, if you will. So you can actually, through drugs and lifestyle and a few other things, actually lower that burden of senescent cells. And there’s a lot of companies out there looking at that because it looks like one of the easier pathways to slow aging. But you really can’t just rely on that because at the same time your mitochondria are running out of gas and meanwhile your telomeres, which are part of your DNA, is shrinking and so on. So really what you’ve got to do is step back and look at all of it and see what you can do from a multi target perspective to actually modulate the aging process.

Paul Spain:
Right, right. So when we look at this sort of, you know, I guess dying of old age, that it can really fall into all sorts of different categories in terms of what that actually looks like.

Greg Macpherson:
Yeah, it’s a systems problem, if you will. And it’s like if you look at a shiny new factory which is equivalent of a cell, it’s got energy inputs, it’s got outputs and it’s got things that break and things that rubbish that build up and it’s got people to manage and all that sort of thing. Well, a cell is basically that. And then if you look at a factory in disrepair, well, that’s kind of what’s quietly happening. And so the beautiful thing is that we can tweak a few levers and that will, that gives us a bit more energy or a bit less zombie cells. And that actually just means that factory can last longer and be productive. And so with lifestyle, because you can’t out supplement or out drag a lifestyle, rock and roll lifestyle so you’ve got to.

Paul Spain:
Not forever.

Greg Macpherson:
Not forever, no. But, you know, so your foundation needs to be good. And then on top of that, and I think with, you know, lifestyle and with supplements, we’re learning about, we, you know, we should be getting an extra 10 years of health span. So which is the amount of time we spend healthy versus lifespan, which is the difference is the disease span, if you will, which is that gradual decline which is associated with older age. But. And there’s new science coming which will possibly shift that again. But for now, that’s kind of what we’ve got accessible to us in terms of being able to extend healthy years. And what’s neat about it is that it doesn’t matter where you start.

Greg Macpherson:
You can be someone who struggles to get to the letterbox or you can get someone who’s. Can run 50 miles. Um, doesn’t matter what you do, you can age better by just applying the lifestyle aspects and then supplementing.

Paul Spain:
Yeah, it’s so interesting, I guess, that, that opportunity to. What was the terminology used? You’ve got sort of lifespan and health.

Greg Macpherson:
Yeah.

Paul Spain:
Health span. Yep.

Greg Macpherson:
And disease span, if you will.

Paul Spain:
Right, right.

Paul Spain:
Yeah.

Paul Spain:
So the, the, I mean, let’s, let’s, let’s say. I don’t know whether you can or can’t have much, much impact on, on lifespan, but if you, if you can’t, if you improve that, the health span, then you gotta, you’ve got a better, a better life while you are around.

Greg Macpherson:
Yeah. I mean, the idea is, I presume

Paul Spain:
both of these get, you know, ultimately get pushed out in a, in an ideal scenario, Right, Absolutely.

Greg Macpherson:
And if you can square the curve where you, you know, you, you kind of running and then you, I guess, drop dead, if you will, but you, you’re healthy until that happens, that’s an ideal scenario. Better than 15 years of, of poor health and multiple conditions and dementia and the joys of incontinence. All these things which are ahead of everybody essentially. But so the idea is ultimately like, how can we be, I think 63 is the general health span at which you start to then accumulate conditions. If we could push that to 73. The benefits for individuals, for families, for countries, productivity, for everything, it just flows. And it’s something like, I think it’s literally a trillion dollars a year for every year that we can expand health span. Because you’re not a drain on the hospital system, you’re productive, there’s all sorts of benefits.

Greg Macpherson:
And that’s why there is a mad rush at the moment to working out whether we can solve these problems and humans, we put our mind to something we achieve, it generally might take longer than we expect, but it’s happening. So yeah, there’s some really interesting work happening that will all going well in our lifetimes. We should be able to radically extend healthspan and lifespan. And I say that because there are animals in nature that live for hundreds of years and they’re mammals just like us and if they can do it, there’s no reason we can’t. So we just got to unpack exactly what’s causing it and driving it and they’re making great progress on that.

Paul Spain:
Fascinating.

Greg Macpherson:
Yeah.

Paul Spain:
Now I, I had a call with, with my, my father a few days back and it was his 87th birthday. So I was, you know, ringing to wish him a happy birthday and as I was chatting he just told me he was out on a, on an hour long walk and then he was gonna, you know, catch a bus somewhere. So I was of course, you know, very impressed and telling everybody how, you know, how fit and healthy my 87 year old father was. And then I later on in the week ended up being able to get a stopover in Christchurch where he lives and he agreed to meet me at the airport. We juggled around sometimes so I could meet up with someone else.

Paul Spain:
And he said, oh, it was really

Paul Spain:
good that you did that. And I said, oh, why is that? And he said I’ve just walked here and it was a three hour walk for him to get.

Greg Macpherson:
Phenomenal.

Paul Spain:
How important is the exercise component and the diet sort of component in the overall picture? Because that’s something that we all need to think about as well as obviously the pharmaceutical opportunities, right?

Greg Macpherson:
Yeah, absolutely. I mean exercise is the best intervention that you can do for longevity. And it’s really about, you look back, as we’ve evolved as a species, we were exercising all the time. So our biology is actually designed for it. So the modern lifestyle where we’re changing chairs and we’ve got access to Uber Eats and we don’t have to chase for food or generally, it’s just, it’s not suiting our biology. Maybe in a thousand years getting up and moving to your chair is going to be the optimal biology because it’s adapted to it. But right now if we’re not moving, we’re not aging well.

Paul Spain:
So Uber Eats should be delivered by a greyhound that goes straight past your door.

Greg Macpherson:
That’s right.

Paul Spain:
And you’ve got to chase it down the street if you want the meal, you got it.

Greg Macpherson:
Yeah, precisely that. So exercise, you’ve got to be really mindful about what you eat. Mediterranean diet has got the biggest signals at the moment, is the best longevity diet. Being hungry though, is important because these days for most of us we are fed, well fed, and actually back in the day there were particular molecular patterns in our pathways, in our bodies which said, if you can’t get food, I need to go into longevity mode so I can get the time to get the food. And these patterns started from mice, but we’ve got those programs and it makes sense, you know, you shift there and so it’s. So being hungry occasionally is really important. Sleep, absolutely. Like non negotiable.

Greg Macpherson:
I remember at university it was, I’ll sleep when I’m dead, so to speak. Well, it turns out you will be dead if you don’t sleep. It’s so, so important. And it’s where you do all your cellular repair and so on. Stress management, incredibly important. Again, acute stress, no drama. But if it’s consistent, it’s a real problem. And you can just literally see it and read it in any of the longevity diagnostics.

Greg Macpherson:
And then the last thing is social connections. We’re social animals and if we’re lonely, again, you can read it in the actual stress. And essentially what it is is stress molecules that are, I guess you feel stress, you generate stress molecules and they hammer your cells. And so again, if you’ve got ongoing chronic stress, you want to step back and go, okay, how do I manage it? And really it’s not about the stress, it’s about how you manage it. Some people go fishing, some people do mindfulness, some people mow the lawns, whatever, but find your thing. And those are the five main things you can do. And if you do that, it’s all free and you give yourself a good chance at a healthy life.

Paul Spain:
That’s fantastic. Well, let’s dive in and discuss SRW Science Research Wellness Laboratories. Keen to hear about that.

Greg Macpherson:
When I was working with Mariq, we were working with a company that was taking New Zealand and Australian brands into China and were extremely good at it. And so Mitochu had got the benefit of that and we had a really great relationship with them. And when I left mitiq, I just and had spent a bit of time with this spark of an idea around SRW and the hallmarks of aging and so on. So I just popped and I knew I had a problem with that, as in you can have a good idea, but if you don’t have customers and you don’t have capital that it’s going Nowhere. So I jumped on a plane with the core of the idea, went and saw those partners and they liked the idea. They took 70% equity in the business take got. But that helped me because I didn’t have the capital at the level that you need to start a supplement brand. So they, I guess crudely solved the money problem and the people problem in terms of their channel was really significant.

Greg Macpherson:
So that’s, I guess from the financial business side of it, we spent a year building the brand and doing the Persona, mapping and developing the full pathway and really just the core of what we were trying to do as a company. And that purpose is to challenge the way that people think about and experience aging as. It’s not just about the pills, it’s about educating people on what they can do around healthy lifestyles. And launched in the middle of COVID effectively and it was just an incredible start. This company has and works with hundreds of thousands of Chinese consumers and they embraced what we brought. And it was something like in the first 18 months at GMV level, which is the full retail price, it was around about $140 million worth of sales, which was just beyond my wildest dreams, if you will. And so it hasn’t stayed that high because there’s a certain amount of consumer fatigue and so on with products and so on. But it’s still a substantial business in that channel and really been beyond what I could have anticipated.

Greg Macpherson:
And of course, with that level of growth, all sorts of challenges as you pull that together logistically and float it across water to get to another market and so on. But we’ve had an amazing team that we put together and built and that’s been the only way we could have done it.

Paul Spain:
So the product supplement did just go into the Chinese market back then?

Greg Macpherson:
Yes.

Paul Spain:
What was the thinking on that? Was that because of the partnership that you could, you know, get the. The best results in the shortest space of time?

Greg Macpherson:
Yeah, absolutely. It was just around access to the market and working with very seasoned campaigners who really understood how to communicate the benefits to the consumer. I typically get stuck in the weeds, which you might have worked out from this conversation, but they were very good at like explaining what we do. But we did focus on the New Zealand Pharmacy channel because that’s the perfect place for us to hang out. And we have built that, the distribution into the Middle east. So we’ve got distribution partners there and currently talking with a couple of other regions as well. So we’re less reliant on China, which is what every brand really needs to do. But in terms of it giving us a platform and the ability and the, the road, if you will, to build in time to build out those other markets that took a lot of pressure off.

Greg Macpherson:
So it was both a challenge and a tremendous opportunity.

Paul Spain:
Now with sales like the numbers you mentioned, I’m picking that you would have had significant overheads too, to be able to get this sort of scale at pace. So it wasn’t that you were, you know, you know, completely overflowing with. With profitability. But I mean, walk us through how, how it sort of, you know, looked from that perspective.

Greg Macpherson:
Yeah, so it’s always. No one knew. Obviously you kick something off and you don’t know. So you, you know, we, we spent a couple of million dollars on building and launching, if you will, and, and very quickly ran out of cash because we needed to fill the channel. And so the other, the benefit of this, the group I was working with, was that they, they loaned us. So I think it was another $6 million that we would have had to do another round to finance. But we were fortunate that they were happy to. To loan us that.

Greg Macpherson:
So. So that got paid back quite quickly. But it, but yeah, it’s been a very capital, intense business in that respect. So growth has been challenged. But I’ve kind of been fortunate that I’ve been sheltered with it because we’ve got partners who have not been aggressive in saying, all right, well, we want the other 30% for this. They’ve been willing to loan it, which is possibly quite unique. So they didn’t use their position to peel me out of the business, so to speak. But possibly in a different situation at a different time, I might not have the 30% that I’ve got today.

Greg Macpherson:
So, yeah, that’s been very generous in that respect.

Paul Spain:
Yeah. Oh, that’s great. The next step on SRW.

Greg Macpherson:
Yeah. So we’ve. Things go in a circular way, Paul. And the patent came off mitoquinol, which was the molecular MitoQ some time ago. And so I really didn’t set out to do that, but I figured someone’s going to and it may as well be me. So we have, I guess, got a chemical engineering company essentially to help us find a way to synthesize it. So we’ve just launched three new products which are, I guess, the first generic mitaquinol products, and quite excited about them because I guess it’s the opportunity to reinvent and reimagine what this molecule could be doing. And so we’ve actually got, I think, one of the first, most recent new patents on the molecule.

Greg Macpherson:
We’ve built a stem cell product. And this product supports, I guess, the full lifestyle of stem cells. And stem cells are your, your cellular bank account. They hang out in your bone marrow, and that’s where most of your immune and blood cells come from, but they hang out in different parts of your body and they get tired as we age. And they’re really important because when a cell disappears or gets injured, that’s what replenishes that cell. And so when we put it together, we’re testing it and the results were quite remarkable. And that was patentable because it was unexpected. And so, so that product is quietly diffusing itself into the world.

Greg Macpherson:
And, and, and we’ll just continue to work with that and probably not, probably we will expand the range. And I am. Got it for my, I guess, like create a bit of work for myself, but I’ve decided to start a pharmaceutical company and, and take the learnings, I guess, you know, over the last 31 years and package it into a, into a new and novel drug use case.

Paul Spain:
Right, so that’s something that

Greg Macpherson:
will run

Paul Spain:
sort of concurrently with other things you’re involved in.

Greg Macpherson:
Yeah, that’s right. So, so we’ve licensed some technology out of ucla and it’s a, it’s a broad spectrum antiviral. So it’s really interesting. It works on the human cells rather than on viruses, and it effectively stops viruses from getting into. Well, it doesn’t stop as far as getting into your cell, but it prevents them from getting the energy that they need to kick off replication. So quite novel. And it means that it works across multiple viruses as opposed to, you know, you take Paxlovid for two, just for Covid or Tamiflu, just for influenza. This will actually has application across multiple different viral families.

Greg Macpherson:
So at the moment that’s very much on a research phase. So there’s not much work that I’m doing on it. It’s really just funding the research, getting the intellectual property locked down, building new patents, et cetera. And I’m just about to go through the pain, if you will, of a capital raise to accelerate that.

Paul Spain:
This is Viriom, Is that the company?

Greg Macpherson:
That’s right, Viriom Pharmaceutical. So it’s really. Not many people know it, but we actually accumulate viruses as we age. Right. So, you know, people have chickenpox and they get shingles, they get, you know, a cold sore. They might get something called Epstein Barr virus that most of us have. There’s a whole raft that we get that just sit there quietly and really don’t cause us that many problems until we have. Until we get older.

Greg Macpherson:
And what they’re doing is they tire out our immune system earlier than we need to. So an example is Shingrix, which is a vaccine for shingles. There’s recent research that’s come out that you get that injection and so you vaccinate yourself against shingles, but you reduce your risk of getting dementia from between 20 and 50%, which is huge. It’s like almost incredible discovery and it’s just indicative of the stress that this little virus just sits there in your brain and just irritates it. And just quietly, you don’t notice it, but your immune system’s really busy keeping a foot on its collar, if you will. But eventually the immune system gets tired. And at the same time, your immune system spends so much time on that virus that it kind of doesn’t have the capacity to deal with anything new coming in. And they think maybe it’s why with the COVID pandemic that’s rolling through, why we’re seeing more things like long Covid and more cancers potentially, possibly because the immune system is getting a bit tied up and a bit tired, and it’s just allowing these things to kind of rear their head, whereas normally the body would keep them under control.

Greg Macpherson:
So the purpose of the company is essentially to lower that burden. And it turns out it works across a number of viruses. So that is going to be a focus for the next wee while.

Paul Spain:
Fantastic. So at what point are you going to have all the products, all the knowledge aligned so that we can just turn the dial and, you know, wind up our lifespans?

Greg Macpherson:
Yeah, so I think we 50%. Yeah, definitely. So I don’t think it’ll be us that does that. It’ll be a very, very well funded drug company. What we can do, we’ve done a clinical trial with the SRW products and what we were able to do was to, I guess, walk the body back. And physiologically, the people that were in the study came out lighter and stronger and slimmer. So that was physically what was happening. But at the biological level, there are ways we can measure its impact on cells.

Greg Macpherson:
And we reversed the biological aging of those cells so that we were acting younger. So we were, you know, it had beneficial effects for stem cells and for just generally supported cells. So I think, you know, really we were the first company to do that and do the clinical trial around it. And I say, like, you know, it’s not. We’re not the first penicillin. But we’re, we’re kind of starting to understand that these interventions do work and modulate aging. We will continue to revise what we’re offering with the new knowledge that comes out all the time. So these, you know, we do a version 2 of this product and really that’s, you know, when the first real longevity products come through, which are, you know, talking 10, 20, 30 years worth of age extension, they’re going to be really expensive.

Greg Macpherson:
So what we’re doing is really making it accessible for everybody and maybe with a focus on lifestyle as well as that, you get your 10 years, which is enough time for the price of these other therapies to come down and everybody will get the benefit of that. And potentially with this work we’re doing with the lowering of viral burden, that may give your immune system a bit more Runway as well. So these will add up to years and years of extra health. That’s fundamentally what we’re aiming to do.

Paul Spain:
That’s exciting. Yeah, yeah. Now, there was another book you’ve released as well. I don’t think we mentioned Ageless or Ageless. Where does, where does that fit in?

Greg Macpherson:
So that was really a, you know, the first books always, you know, you look at it and go, that’s. The quality is appalling. Right. So you go back and have another go and attempt to tidy it up. So this was really an evolution of the first book. I got the opportunity to travel around the world and, and sat down and captured interviews with leading experts and really just to get their view of what’s happening in the industry and also just to say, what are you doing today about longevity? So these are all accessible things that we can all use. So within that book there are QR codes that you can scan and it’ll give you a video and it’ll have Eric Verdon, who’s the head of the Buck Institute or near Bazali, who’s the head of, who’s just an incredible longevity researcher and just a pleasure to talk with these guys. But that book gave me the opportunity to at least learn again and, and build something which hopefully people can read and again, just learn what’s going on at a, at a consumer level and adapt their lifestyles and what they do take, etc.

Greg Macpherson:
And also giving people a sneak peek of what I think is around the corner in terms of radical life extension, which is just a matter of time.

Paul Spain:
So living forever is probably not quite on the cards from what you’re seeing.

Greg Macpherson:
No, I think the longest living mammals 200 years.

Paul Spain:
What lives for 200 years?

Greg Macpherson:
Well, it’s a bowhead whale, so and then the Greenland shark can live four to 500 years. Not, not a mammal. But you know, but what the, what my take on all of this is that, and it’s, is that we’ve program is aging, is programmed. And there’s, there’s some amazing mathematicians that looked at animals that don’t age, which are crocodiles and various reptiles. And there are animals that do age. And the animals that have aged have actually been much more successful evolutionarily. And what they think is that by aging quickly, reproducing quickly, and maybe having a shorter lifespan enabled us to populate niches and environments much easier. And so mammals essentially and other animals that have certain lifespans, that was the program which actually worked way back when.

Greg Macpherson:
And we have inherited that program. And what you can program, you can un program or you can do something with. And this is what’s happening at the forefront of the research now. David Sinclair is a well known name in the research community and he’s worked out that you can actually reprogram it. And, and so we have technology now which enables us to measure biological age. And this is essentially patterns of molecules on your DNA and those patterns drift and change as we age. And you can look at them and take a snapshot and say, well that looks like someone who’s 40 or 60 or 80.

Paul Spain:
Right. This is what Brian Johnson’s sort of known for working to turn the clock back.

Greg Macpherson:
That’s right. And all those foundational things we talked about move the clock backwards. Certain supplements move it backwards clocks, but they’ve getting really close to actually the master switch, which actually you can for want of a better word, in probably about 20 years time, go and have a cellular car wash and reprogram those patterns back to a youthful pattern. And then all of a sudden your cells start acting youthfully again. It’s really interesting. So there’s, there’s, there’s a really good chance that we can choose the age we want to be at and stay there for a reasonable amount of time. So you know, it’s going to get quite weird when that happens of course,

Paul Spain:
because you’ll be, I could turn back the clock on my graying beard, 100. Gray hair.

Greg Macpherson:
Yeah, you got it. Yeah, yeah, totally. And you’ll be, you know, socializing with your grandchildren’s mates and you know, it’s going to be just kind of, kind of weird on many levels. But the future philosophers will work all that out. But in the Meantime, you know, if you spoke to someone in the 1800s and said, look, instead of, you know, Average age was 35 lifespan and here we are at 73 or 80 in developed world, if you said, you know, you could have 40 more years of healthy living, you’d grab it with both hands. And so in theory we will get to a point where we can offer that. And it doesn’t mean you’re 120 and are just stuck in a rest home. It’s 120 and living in a 40 year old body.

Greg Macpherson:
So that’s potentially where it’s at. So obviously that’s a big leap from where we are. But the breadcrumbs are starting to appear that that’s likely, that’s what we’ll be able to achieve.

Paul Spain:
Anything else on your business story that you’d like to share?

Greg Macpherson:
Yeah, well, look, I think Pharmacy Direct’s an interesting one because we really worked hard to establish that and then Chemist Warehouse came to town and that’s been a massive challenge for the sector. We’re half the size we were and so that’s been, you know, there’s good stress in business and bad stress. Good stress is when you’re growing. Bad stress is when you’re having to right. Size things because customers have got a new channel that they can get lower cost products with it. So we’re, you know, we’re, you know, we’re having to pivot and diversify the business and we’re doing that and sorting it out. But that’s been, you know, it’s just, that’s, you know, another chapter in the pharmacy story, if you will, that’s still evolving and we are, you know, we’ve got a strategic plan we’ve mapped out. We’re slowly ticking all the boxes and I think Pharmacy Direct will, you know, we’ll start to claw back, if you will, some of those losses as we build a business with extra services and so on that will benefit people around their health.

Greg Macpherson:
But no, I think that’s the journey.

Paul Spain:
Now. What, what would be, you know, maybe from, from your, your journey, one or, one or two bits of advice you’d have for, for others sort of you know, key, key learnings from your, your story. Yeah, that, that you think maybe, maybe don’t get applied enough or others aren’t, aren’t aware of.

Greg Macpherson:
Yeah, look, I, look, I don’t know my, I guess like I was saying, I’m a slow learning really. We’re, I’ve got a friend, Hartley Atkinson, who owns AFG Pharmaceuticals and He’s done an extremely amazing job, and I’ve spent the same amount of time as he has on his business, and I think his business is worth about 300 million. And mine is serious, you know, points of that. Less. Like it’s. It’s almost the comparison is. You can’t make the comparison, essentially. So my learning really is okay.

Greg Macpherson:
If you’re looking at a sector that you’re in, it’s about really examining where the money is and either navigating there through entrepreneurship or, if that’s not your deal, really looking at the companies that are in that area and applying your skill set in making yourself attractive to those companies, because they’re typically less sensitive around how much they pay. And typically you’ll earn more on those companies if you’re an employee. So that’s definitely something I’m, I guess, pointing my kids towards in terms of really looking quite consciously around that. So that. Because you can spend the same amount of time in a role that pays you a living wage as a role that pays you twice as much. So it’s about like, okay, how do you find your way into those sectors and niches that are doing really well? And then I think the other thing is to really be quite conscious and thoughtful about, I guess, what you’re doing. I think in the early days, I was more attracted about being in business than actually being good in business. So it’s about actually taking a breath and looking quite carefully at what you apply your time to.

Greg Macpherson:
Because again, you can spend 20, 30 years building an online pharmacy or a pharmaceutical company, probably the same amount of effort, and the returns are really, really different. So it’s consciously designing that.

Paul Spain:
Yeah. And a different level of impact, too, right?

Greg Macpherson:
Yes, yeah, very much so. The more people you can help, the more impact you have, the more rewarding.

Paul Spain:
Yeah.

Greg Macpherson:
Life can be. Yeah.

Paul Spain:
Oh, that’s great. And any sum up on tips for, you know, longevity of health?

Greg Macpherson:
Yeah, no, it’s. Look, it’s a. It’s really. It’s just. It’s exercise, diet, sleep, stress, and friends. Just get that, right. If you’re not a people person, get a pet. If you’re not a pet person, you know, there’s a community out there that, you know that, that resonates with you.

Greg Macpherson:
Just get involved and get out there. And certainly there are supplements that have benefit and there’ll be more and more of them, but just don’t get sucked in with just the one molecule, because it’s not one thing. Does all you’ve got to be quite holistic. Around how you approach it and again quite conscious. And that’s really where sow is focused on is how do we curate all of this? So and test it so that you’re taking something which has got reasonable evidence of effect.

Paul Spain:
And so for yourself, what do you take?

Greg Macpherson:
So I actually take everything that I make. It’s sometimes a bit of a chore in the morning because there’s quite a few pills in the stack if you will. But I swim every second day. I took the leap and bought a sauna a year and a bit ago. So I peer a sauna spathe after a swim and I do some time restricted eating. So try and eat within an eight hour window. Not always successful at that. But that just generally as a rule just gives you time, your body time to go from fed into fasting mode.

Greg Macpherson:
And there are things that the body does in terms of if it’s a bit hungry when you’re fasting, it’s got no food to access. So it might go and it sees a cell, it’s not operating particularly well, it’ll actually go and grab that and use it and a stem cell will pop up in its place. So it’s a nice way for the body to kind of keep the housekeeping going. And I do. I’ve got Crohn’s disease, which is an autoimmune condition and it’s kind of like arthritis for your guts I guess is the best way to describe it. So I actually do a four day fast every quarter. It gives my stomach a break. But there are really significant benefits in terms of that whole longevity pathway switch.

Greg Macpherson:
And it’s just a water fast. I drink a cup of tea and cup of coffee and water but I do that for four days and it just gives me a bit of a reset, gives my tummy a bit of a break if you will, but. And you’ve got to do it under medical supervision because some people shouldn’t do it. Some people with certain health conditions and, and some people possibly like don’t have not carrying enough weight that they can get through that time. But ultimately it creates metabolic flexibility and it’s good for you and there’s lots of research around it and yeah, I’ve got some amazing friends and I’ve got a purpose and if you got all of those lined up, you’re golden.

Paul Spain:
Excellent, excellent. Thank you very much. Greg Macpherson, it’s, it’s been a privilege. Thank you for your time.

Greg Macpherson:
Yeah, and it’s, it’s good to see you. Paul used to look after our Pharmacy one computers back in the day. So it’s quite neat to catch up with you again.

Paul Spain:
Yeah, I really enjoyed it. Thank you Greg.

Greg Macpherson:
Thank you.

Paul Spain:
Cheers.

Paul Spain:
Wow, what a fascinating chat with Greg Macpherson. I trust you have some great takeaways from this episode. New Zealand Business Podcast has been brought to you by One New Zealand alongside Gorilla Technology, making tech enablement and cybersecurity easy for for mid size and smaller businesses and by Outrun Global remote Staffing to help your local teams work smarter, not harder. Be sure to listen in to our other episodes featuring many of New Zealand’s most successful leaders, including Brooke Roberts of Sharesies, Sir Peter Beck of Rocket Lab, Cecilia Robinson of MyFoodbag, Sir Stephen Tindall and many more. And be sure to share this episode with a friend or colleague who you

Paul Spain:
think will benefit from it.

Paul Spain:
Now I have a question. How seamless and proactively is technology managed in your organization? The reason I ask is because recently a Chief Financial Officer alerted me that the tech onboarding he recently received from my team at Gorilla Technology was the best he had ever received. That’s because the Gorilla team care about the individual and delivering technology solutions and capabilities that work for you. So when a new team member starts at a guerrilla client, we give them a personalized introduction to how to get the best out of their technology and how to be aware of risks from the likes of cybersecurity and AI governance. Get in touch if you would like that level of personal care and attention. Hey, thanks for listening in. This is Paul Spain signing out. I will catch you on the next episode.

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Mike Casey: Tech Exit to Cheery Farmer

Posted on 19 Jun 2026 in Featured

Mike Casey: Tech Exit to Cheery Farmer

Host Paul Spain is in Cromwell with Mike Casey, the entrepreneurial force behind Electric Cherries, co-founder of Fishburners and GradConnection and CEO of Rewiring Aotearoa.
Mike shares his journey from a tech startup founder in Wellington and Sydney to pioneering sustainable, fully electric farming in Central Otago. Mike shares insights on business challenges, the real story behind his successful exit, practical tips for entrepreneurs, and a passionate case for electrification and climate-friendly business in Aotearoa.

For more: Mike Casey: Electric Tech Enabled World First Farm – NZ Tech Podcast

Special thanks to our show partners One New Zealand, Outrun Global and Gorilla Technology.

Listen to the Podcast Here:

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Paul Spain – LinkedIn
Paul Spain – CEO, Business & Tech Commentator, Futurist

You can keep current with our latest NZ Business Podcast updates via Twitter @NZ_Business, the NZ Business Podcast website.

 

Episode Transcript (computer-generated)

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Paul Spain:
Mike Casey, great to have you on the New Zealand Business Podcast.

Mike Casey:
Thank you for coming down. It’s a pleasure to have you fly all the way from the other end of the country down here to little old Cromwell. It’s quite the privilege. Thank you.

Paul Spain:
Oh, loving it. It’s a stunning, stunning day here. Incredible part of the world to be, to be hanging out like to start with, hearing a little bit about your upbringing. Where were you born?

Mike Casey:
So Wellington. Spent my whole life in Wellington actually. Went to Wellington College, Victoria University, Computer science degree.

Paul Spain:
What was it like for you growing up in Wellington? What was your childhood like? If you kind of look back and see the connections to the things that you’ve done later in life and business and so on, you know, what connections can you see to your entrepreneurial bent, to your technology interests?

Mike Casey:
Yeah, I would say, I would say that, you know, I’d probably say grew up in a lower middle class family like, you know, reasonably well looked after and loved, which was, which was obviously hugely important but always had that taste for wanting to, you know, go a bit further in life I think. Mum worked hard, she was a bureaucrat in Wellington. Dad was an entrepreneur that struggled from one startup to the next. But I also taught me so much about being a startup founder myself and yeah, so by the time I went to university I realized computer science was where it was at because I really wanted to be an entrepreneur and not answer.

Paul Spain:
So you weren’t put off that from, you know, what were the things that your dad did in terms of his businesses?

Mike Casey:
So he ended up selling his business only a few years ago now. It was a technology like a SaaS product for accommodation providers here in New Zealand. Ccom. Yeah, before that he went through a series of different ventures that, you know, that, that, that with varying levels of success as many entrepreneurs really do. But I don’t know, like, I just always looked at him as a kid as just how passionate he was about all this kind of stuff. Mum and dad split up when I was like 6 years old. That’s cause Mum, you know, I think wanted the stable income that my entrepreneurial father couldn’t necessarily provide, you know, but also my, you know, later on in life my dad is an ACT Party candidate. My mum’s a big supporter of the Green Party so you can see why they’re both happily married, remarried now and I got the benefits of both of those worlds right.

Mike Casey:
Like I, you know, largely brought up by my mum in a very stable and loving environment and got to see my dad do amazing things with with business. And so, yeah, I feel like I was very, very fortunate to, you know, grow up in a, in a household where we didn’t necessarily have a huge amount of money, but way more money than other people in New Zealand. So being very grateful for that and sort of realizing, you know, there was a bit of taste to see where we could go and where we could take it. And ultimately the entrepreneurial spirit led me in the path that I’ve been down, which I’m very proud of.

Paul Spain:
Yeah. And the sorts of things that you, you did at school, were there things there that, when you look at them, were helpful? Did you do things that were kind of leadership wise, sport wise, or, you know, were you very academic?

Mike Casey:
No, I was thick as two planks, mate, let’s be honest. No, terrible academic, very top of, well, middle of the bell curve in almost all sporting endeavors. You know, like, really, really good at being mediocre at a lot of things. You know, enjoyed my sport, enjoyed my mates at school. I don’t think there was anything in particular. Like, I always knew that I was gonna be an entrepreneur. Always knew. And so I think the only thing was the flavour of entrepreneur that I was gonna be and obviously went down the computer science path when I realised that you can make really valuable businesses with bugger all capital.

Mike Casey:
And that was what led me down that path of realizing that was the pathway forward. And that was in the early 2000s. Right. I finished well in college in 2001, started my computer science degree in 2002. By 2006, you know, founded the company that went on to sell in 2019.

Paul Spain:
So, you know, so, so coming out of university, what, what did you, what did you, what did you do? Because.

Mike Casey:
Went into the WESTPAC graduate program.

Paul Spain:
Yeah.

Mike Casey:
Because, you know, to some extent people in my life were advising me, stable job, do the business later, you know.

Paul Spain:
And did you learn some, some valuable lessons from being in, in an environment, you know, like that of a large organization with varying structures and so on, or do you think.

Mike Casey:
Sure, I learned that this is not for me. And I remember one of my direct lines at the time, I was having a bitch about something, being stupid, you know, some process or something like that. And he goes, see those things on the windows there? They’re blinds, not bars. Feel free to leave any time. And I was like, it’s really sage advice. And so it wasn’t long until after that where, you know, I met my. The great thing about it is the co founders that I founded that business with, I met at Westpac and you know, we decided that this is something that we wanted to do. We were all graduates.

Mike Casey:
We didn’t think that, you know, we’d been exposed to all the opportunities available when we left university, that ultimately there had to be a better solution out there for, you know, advertising graduate opportunities to students so they didn’t miss out on things. And we decided to do that. We found it at New Zealand in, I think 2006 and by the time it was 2008 we realised that there was a lot more money in graduate programs in Australia, so moved a lot

Paul Spain:
more people too, right?

Mike Casey:
A lot more people, a lot more students, a lot more corporates, a lot more positions. So we moved over to Sydney and gave it a good crack there and it worked really well, thankfully.

Paul Spain:
So the similarity between New Zealand and Australia, how close was that? Cause sometimes, yeah, something will start in New Zealand, it’ll be clear there’s a global opportunity. Sometimes it’s like, well, maybe there’s an opportunity in Australia. But obviously that translated very well.

Mike Casey:
Oh, I mean, I love Australia, I love Australians. They’re very, very welcoming of us. I think. Like the one way that I describe it, like, no one, unless you’re from Christchurch, no one asks you what school you went to, right? Unless you’re from Christchurch, Sydney, everyone asks you what school you went to. Like, it’s hugely important for social hierarchy and stuff like that. So as a joker from New Zealand, they’re just like, oh yeah, is that a good school, was it? Oh, it’s the best school, yeah. Okay, great. You know, you’re in the club then, you know, like.

Mike Casey:
And so that was quite power. And then, you know, in 2008 when we moved over there, the tech startup scene was just becoming a big thing. So I knew so many of my mates over there did so well in the technology startup scene in Sydney and you know, we were kind of like the OG kind of crew over there, I think. And I ended up founding a co working space called Fishburners, which ended up being absolutely massive over in Sydney, where we just collected as many entrepreneurs as we could and put them all together in one room and just, you know, learned off each other. A big, big fan of the saying, you are what your friends are, so make your friends successful and you’ll successful as well.

Paul Spain:
And so how, how did you can connect with that group and manage to, you know, make, make that work? Because as you say, being around the right people, you know, can, can completely, you know, transform the trajectory of someone’s life.

Mike Casey:
Just got on the tins with them. Yeah, you know, it’s as simple as that, really. I mean, you know, one of the unhealthy aspects of it was the amount of social capital that was tied up in drinking at the time. But, you know, I was in my early 20s and that was a really fun thing to do. So went to the pub a lot, went to all the drinks and the meetups of the, you know, entrepreneurs that were there at the time. Started hanging out with a few of them. You just slowly integrate your way in. When they realize you’re, you know, you’re not some prick from New Zealand, you’re actually a pretty decent dude.

Mike Casey:
And, yeah, sort of just grew it from there. But some of the advice that I got from those people was hugely important for shaping the business that we created and the entrepreneur that I became. And I think even realizing things like, you know, so much of entrepreneurship is lucky. Right place, right time. Yes. You’ve got to be in it to win it.

Paul Spain:
You’ve got to make your own luck too. You’ve got to make your own luck as well. Right. If you’re not there, you’re not going to have the luck.

Mike Casey:
I think that’s what I was saying. If you roll the dice enough times, your numbers will come up or Fortune favors the brave is another really good, I think, entrepreneurial, you’ve got to be brave to capitalise on the fortune.

Paul Spain:
Not every player is going to work out, though. And some you can roll the dice for 20 years and you might not land it. Right. But if you’re not there, you’ve got zero chance.

Mike Casey:
Exactly. There’s entrepreneurs in Sydney that I really, I thought they were incredible entrepreneurs that were never successful, never got an accident, floundered around, you know, and unfortunately, you know, didn’t. Didn’t have the success that they dreamed of. And other people that I just thought were absolute dropkicks that sold their businesses for hundreds of millions of dollars. So, you know, it goes. It goes all sorts of ways. But, yes, I think the number one thing is you have to be in it to win it. I’m so glad that I was in it.

Paul Spain:
Yeah. Now I want to hear a little bit more about Fishburners.

Mike Casey:
Right. Yep.

Paul Spain:
Was that something that, for you, the main benefit was, you know, the people you connected with and so on, or was that actually a viable and a good, you know, good business over, over, over time? And how did that play out?

Mike Casey:
Everything I’ve done has been by accident. Getting the job at Westpac and meeting my co founders is like, okay, this is, you Know, fortune favours the brave, I guess, Right. When it came starting to Fishburners, we were renting, subletting. Our business was subletting off a much larger technology business that got acquired and shut down. And they were like one day they were just not there anymore and we were left with our little desks in our little room. Landlord comes in and goes, well, you can take over the lease if you want. This is how much it costs. Or you can get out.

Mike Casey:
We’re like, ouch. Well, we can’t afford this giant office space, so what are we going to do? And, you know, we just had the idea, well, let’s go down to IKEA and buy a whole bunch of desks and then start like renting the desks out at a hundred dollars, I think it was 100 bucks a month. You know, it’s that cheap at the time. And if we fill this office full of 18 people, then we’ll be able to make rent. So that’s kind of what we decided to do.

Paul Spain:
And we went and negotiated some sort of flexible terms. So you weren’t immediately committing to a

Mike Casey:
piece or anything, right? I think we did commit knowing full well if we just walk away if our business folded, you know, like, whatever.

Paul Spain:
Yeah, it wasn’t tied back to you.

Mike Casey:
It wasn’t tied back to us or anything, but it was successful. It’s. People craved it. This is before co working was even a thing. And all of a sudden people were in there.

Paul Spain:
And what year were you kind of talking at that point?

Mike Casey:
2008. Yeah, yeah, 2009 maybe. The problem was, is that we hadn’t thought about all of the things that come with running a co working space. Like, was there a cleaner? No. Have we budgeted for a cleaner? No. You know, there was about a thousand different keys cut to the office. I was like, this is probably a bit of a security risk. And it’s like, who’s going to actually chase the rent when someone doesn’t pay it and all this kind of stuff anyway.

Mike Casey:
Just telling the story about how successful this had been, but not successful enough in the right way, like, you know, the growing pains associated with this. And found another entrepreneur in Sydney who was like, well, I’ll just take out a bigger lease for you and give you enough funding to get a receptionist and a cleaner and stuff. And you just sort out the pricing model and pay me back when you’re ready. So that happened. And so all of a sudden Fishburners became actually a formalized sort of entity. It was a not for profit because we didn’t, we were. The value for us wasn’t in the real estate, the value was in surrounding ourselves with awesome people.

Paul Spain:
Great.

Mike Casey:
And then that led to another thing and then Google was sponsoring it and Optus was sponsoring it and the New South Wales government was sponsoring it and then ended up being, you know, a whole thing in the middle of the central city across multiple floors that would have, by the time we’d finished up, housed thousands upon thousands of startups. It was a really cool experience.

Paul Spain:
Yeah. And I guess you would have heard lots and lots of stories and lots would have come out of that and you certainly wouldn’t have known up front. And even afterwards you won’t know of all of the conversations and all of the things that actually helped facilitate it. Right. Like there’s something pretty special about getting people together and able to nudge each other along and help each other out.

Mike Casey:
Oh, totally. And I’m just like totally fond of the experience, the relationships that I’ve still got with so many founders. Like there’s some pretty, pretty successful founders out there that would pick up the phone if I called them right now, you know, like, and that is awesome experience, but they weren’t successful when I knew them, you know, and so that’s really powerful, you know, and they’ve been really supportive of what I’ve been doing here now with my new business on farm and sort of blown away by what we’ve been able to achieve and the coverage that we’ve managed to get. But yeah, I don’t know, it all comes back to. There’s something really special about, you know, fighting in the same trench alongside good people. In the case of co working and entrepreneurship, you were never really fighting the same fight but you were fighting it together and that was quite cool.

Paul Spain:
You’ve been in business, you’re in business, but the non profit side is, you know, has, has been part of the picture for you, you know, now more, more, more than once. Anything that, that stands out from, from that, that, that time there with fish burners that, you know, that really sticks with you.

Mike Casey:
I think the non profit thing, like, you know, you saw big co working spaces come in and then scale up massively and then go bust and all of that kind of stuff. And for me the not for profit was a way of cementing to people so that they would trust it, that this is actually something that is about community. It was, it was much more garage band rather than Taylor Swift, if, you know, if that makes sense. Like we were just trying to create a good environment for other entrepreneurs. And, you know, people look back at it now and they’re like, oh, wow, you’ve done such, you did such an amazing thing for the Sydney startup scene. It’s like, yeah, but I didn’t intend to do that. Like, it kind of grew awesomely because it was so community focused. It was focused on the actual people involved.

Mike Casey:
Now when it comes to what I’m doing in the energy space, it’s again, it’s about focusing on the people and what’s best for our people. So that’s where the charitable kind of not for profit angle I think comes from in a big way. And for me, now I’m in a position where I’ve made more than enough money for my wife and my family, you know, to be comfortable. We own a nice cherry farm in Central Otago. We’re doing okay. So now how do you maximize your impact? How does this becomes more about impact and legacy than it becomes about money making? And when I was in my early 20s, my entrepreneurship was all about how do I get rich, how do I become financially free? Now that I’m in my early 40s, it’s how do I have impact? How do we make New Zealand a better place? And I think the whole journey with Fishburners was very much, much the same. Along the way. It was, well, you know, how can we give back? How can we help foster a good community? How can we benefit from that community? So that’s kind of where that came from.

Mike Casey:
And I didn’t want to ever make money out of the co working space because then I wouldn’t be focusing on what was really important, which was my own startup that needed to be successful.

Paul Spain:
And how easy was it to bring others into the Fishburners story? You know, you talked about others supporting it, whether it was at a government level or businesses that wanted to support it. Was that something that just happened quite naturally and organically?

Mike Casey:
I think so. And organically. But also you’ve got to be very generous with your attribution. Like, if you draw a circle around your territory and like guard it with a spear, people aren’t going to come in. But when, you know, when you let people come in and use the space for their own benefit, like it would grow, you know, quite awesomely, quite quickly. So I’d say that’s probably the number one thing. It’s just, you know, like when you, when you’re wanting something to grow and when you want to have impacts, you invite people into your circle. You don’t try and protect your patch.

Mike Casey:
And so, you know, I’ve been, I’ve always been known as a founder of Fishburners, but there’s dozens of other founders of Fishburners. You know, I, the people that put money into Fishburners early on are the ones that ultimately probably made it more successful than I did. You know, I’ll always be a co founder of GradConnection shared with three other guys. You know, my now where I am running the Cherry Orchard here in Central Otago, I’m a co founder with my business partner who is an old high school mate. You know, you bring people in and you’re always very inviting, you know, and bringing people in and I think the more and more people that you can help surf the wave, the better off society is. Yeah, yeah.

Paul Spain:
Now let’s delve more into the GradConnection story.

Mike Casey:
Yep.

Paul Spain:
So you moved to Sydney. What happened then? What was the thing that made it really work for you in the Australian market?

Mike Casey:
Well, the first lesson I learned is as an, as an engineer, I thought, you know what, I’m going to build this product that everyone’s going to want. So I built this product and then we tried to sell it, no one wanted it. And it made me realize, how did

Paul Spain:
you try and sell it?

Mike Casey:
Just to have set up meetings. I’ve created this new product. I think it’s going to be great. Come in and it’s like, oh, no, no, no, not really.

Paul Spain:
So you was, who were you selling to at that point?

Mike Casey:
This was corporates, this was hr, people who ran graduate programs.

Paul Spain:
Right. So you, you were looking for them to like buy a subscription.

Mike Casey:
It was, it was like a pool of CVs of graduates. Right. And it was like, you could go in, you can search, you can find the ones you want, you can invite them to apply or something. Yeah, I can’t even remember is that long ago exactly what the product was. But I went, well, the, the thing that I had completely underestimated is that was not the way the culture worked. The culture worked. It’s a graduate would apply and then they would get their pool of candidates and then they would go through their process and that was, you know, the way that it would work. And so I went in there and I tried to sell this product and was like, nah, nah, that’s not, don’t want that, that’s not interesting.

Mike Casey:
And I was like, why did I spend all this time developing this bloody product when I could have just gone and spoken to the potential customers in the first place? So then I was like, we just made up a product that we hadn’t built yet and was like, went in and tried to sell that and oh my gosh, people started buying it.

Paul Spain:
Everyone wanted it. So initially you didn’t have that product market fit. Then you heard from the market what you wanted, what they wanted and then when you offered that back to them, there was immediate interest.

Mike Casey:
And then what made us successful entrepreneurs was promising the earth and somehow delivering on those promises. Right. So it became oh yeah, well we’re launching this on the 1st of March in line with when the graduate application season opens up. You’d like to be one of the first on our, you know, on our new website which is just like an advertising job board style platform. And what we’ll do is, you know, it provides an awesome calculator so a graduate can come in and they can say what they’re looking for and then we’ll tell them what the best, the highest matched employer is. So if you offer free parking for example, we’ll add that into the list and all these kinds of things. They loved it. And so yeah, we then worked as hard as we could to launch that on the 1st of March 2009.

Mike Casey:
And I think we might have had 20 employers that signed up at 1500 bucks each. By the time we sold it in 2019, the average employer was probably paying 20 something thousand dollars to advertise on our website. And we had this is sort of

Paul Spain:
a monthly type of commitment.

Mike Casey:
No, annual, annual. So the, the thing about graduate programs is they were annual at, you know. Oh yeah, yeah, yeah, yeah. So but what the biggest, the biggest selling point was was that the information would be up on the site all year round and they could toggle applications on and off whenever you liked. Because ultimately what was happening was that people were missing out on that information because they didn’t show up to the crisphere at the right time or they, you know, for whatever reason missed the magazine or the job, the seek job bought out at the time. So we were like, no, your, your employer brand is going to be up there all year round. You’re going to talk about your values and what you do and all that kind of stuff. And then you can vary your content whenever you like.

Mike Casey:
And by the way, you’ll, you know, you can turn applications on and off whenever you like. And that was really the thing that started to get that over the line, you know. Kevin Rudd, favorite Australian prime minister of all time only because he made a rule that a certain portion of Australian government spend had to be on small businesses with I think staff below 20. And so we became a tick box for a lot of businesses that were, you know, looking to a lot of government departments to advertise their graduate programs. And that’s really what seeded a lot of our early stage success. Right.

Paul Spain:
So that’s, that’s a bit of the luck piece.

Mike Casey:
Absolutely. Right place, right time. Fortune favors the brave. Yeah.

Paul Spain:
Now walking, walking forward to selling. What did that look like? How did that come about? Was that something where you went out to the market? Was it something where you were, you were getting interest from multiple entities, or was it just the one opportunity that came up?

Mike Casey:
Yeah, it got really interesting because when you’re creating a, as a reasonably fresh graduate, creating a graduate job board, you think this is the most relevant thing in the world. Right. And in our earliest to late 20s, amazing time, you know, parties on campus, all of these kinds of things. It was fun, right? Get into your early 30s. And I’d, I literally fell out of love with my startup five years before I sold it. Right. And ouch. But the problem is all your chips are in the middle of the table, right? There’s no liquidity event on the horizon.

Mike Casey:
It’s very hard to sell. You know, you’ve got three founders that, you know, the other thing is we started the business when we were what, 23? Sold it when we were 33, 34. You know, there’s a lot of growing up, a lot of relationship change during that time. And so we started to get to the point where we all wanted different things in business and there was a bit of friction associated with that as well. And you know, lucky for us, right place, right time, fortunate again, seek came along and decided that we were valuable because they didn’t have access to, you know, the people that were looking at getting their first professional job. That was what we, that was the part of the market that we controlled. And to be fair to Seek, they were a really, really good acquirer that, you know, offered a really fair price. But, you know, also we were a startup and they were a publicly listed entity.

Mike Casey:
So to get all the ducks in a row and get everything up to a point took 18 months.

Paul Spain:
Wow.

Mike Casey:
Right, 18 months. And all sorts of carry pretty taxing on you. Hugely taxing at a time where there was, we were experiencing friction amongst the co founders and a couple of times, you know, like for those accountants that are in the, you know, listening on, basically we had to convert from cash accounting to gap accounting and that seemed to magically shove half the revenue back a year and half the revenue 40 years. So the year that they were buying our business didn’t make us look like we were very successful at all.

Paul Spain:
Oh, dear.

Mike Casey:
And so there was. The sale and purchase agreement was taken off the table at the 11th hour and put back on. Nothing nefarious, just part of that acquisition process in the way that it went down, you know, and we shopped around to see if there was some other buyers out there. There are a couple of other buyers out there, but nothing like as creditable and as, I think, compassionate and open to buying our business as what seek was. And so I think, you know, at the end of the day, they were very, very good acquirers of our business. Very responsible. They weren’t there to, you know, try and screw us over, which I think in a lot of cases, a lot of business transactions that can happen. So that was super valuable to have that happen as well.

Mike Casey:
But that’s why I was 10 kilos heavier than I am now when I sold my business, right? You see the first term sheet and you start spending that money in your head, you start planning things, and all of a sudden it gets taken away and then it’s half as much as it was and all these kinds of things. It was a really stressful, tricky time. And I think that’s the other part when we’re taught as young entrepreneurs, it’s like, oh, imagine the day that you sell your business. It’s going to be a massive party and it’s going to be so anticlimactic, like by the end of you, like, oh, thank Christ that’s over, you know, because you’d just been through the wringer to get, get, get out the other side there. And so it wasn’t. And so the whole building of the Cherry Orchard was really my celebration of that success rather than the sale of the previous business. Yeah.

Paul Spain:
Wow. And, you know, where were you at in terms of family and so on at that time? Because these things can take a, you know, can have a huge impact on family. You know, I think you mentioned earlier around, you know, alcohol being part of the story, you know, you know, these things aren’t. Aren’t unique. Right. Obviously the particular situation is, but the sort of pressures that it creates, you know, catching up with someone last week and, yeah, he was. He was sort of walking through, you know, me through a little bit of his story over dinner, and it was like, you know, basically, you know, he was making this comment because he’s like, no, I don’t drink anymore. But there was this time in my life where it was, you know, drugs Drugs and alcohol were what was fueling things, you know, how did all that fit together for you?

Mike Casey:
Yeah, so I mean, I think the first thing is to how appreciative I am of my wife. Like we moved over in 2008 for me to start a technology startup. She went over there, she’s an accountant, she got a good job, she supported me for four or five years. As my girlfriend, I think my in laws were like, what the hell are you doing with this dead dude? Like, you know, but she stuck with me. And so on the other side, selling the business and having her get the reward from that is, you know, super important. But also, you know, we had two young kids in Sydney and that’s when I think priorities, you know, started to change in a big way. Why we wanted to move back to Aotearoa, why, you know, we were struggling a little bit with some co founder friction and things like that. The most stressful time week of my life.

Mike Casey:
My boy, my second child, my little boy was born and three days later we signed that sale and purchase agreement finally. You know, like it was, it was hectic, right? And I, you know, I’m not gonna lie to you, like I was using alcohol to sort of moderate thinking and everything a little bit. Like I’m not, I, I still enjoy a beer every now and then. I think one of the great things about moving to rural New Zealand is you can’t drink because then you can’t get home. So you immediately change and you know, like I, I, I’ve just completely moved away from it now where now I enjoy a beer after a mountain bike ride or you know, a couple of beers down at the pub, very frequently, very rarely with some old mates and stuff like that, you know, and I just think that, you know, from a, from a family perspective, we were very lucky that we sold the business when we did. And I think from an outcome perspective it was too. We sold the business in 2019, moved back here and three months later we planted trees in the ground and the world shut down.

Paul Spain:
So you were able to effectively just, you know, step out. You weren’t locked into a, you know.

Mike Casey:
No. So X years needing to be sometimes like earnouts are burnouts.

Paul Spain:
Right.

Mike Casey:
And the interesting thing here is, you know, we were, I was going to have an earn out like the rest of my co founders, but the moment that we signed the sale and purchase agreement, I was on paternity leave because we got bought by a private, you know, a publicly listed company that had, you know, parental leave policies. So I Was like, okay, well we’ll go on paternal leave because that’s what was required. And I took an extended, the extended auction. And by the time I, you know, that was up. I really didn’t want to go back. I’d kind of moved on psychologically. And they were like, yeah, we’re running the business fine, we don’t really want you back. So it was like the perfect we don’t exit.

Mike Casey:
Well, it’s just like, you know, a lot of the time when you buy businesses, you need to founders to stay on.

Paul Spain:
That’s it.

Mike Casey:
I was not around when that transition,

Paul Spain:
when it was happening. Yeah.

Mike Casey:
And it turns out it didn’t need to be.

Paul Spain:
They’d figured it out by then.

Mike Casey:
Again, incredibly fortunate. You know, I know a number of founders at the moment of my friends that are going through exits that are really struggling because you kind of lose your soul in exchange for money. And that, that only goes so far. And you know, it’s a willpower is a muscle and like any muscle, it fatigues quite quickly when you use it too much. So.

Paul Spain:
Yeah, yeah, yeah. Well, we’re here, you know, right on the, the orchard. So tell us about, you know, moving back to New Zealand and, and the story of electric chairs.

Mike Casey:
I mean, move all again, kind of unplanned and kind of by accident. I love the idea of farming, but moved back to New Zealand. My wife really wanted to come home and I kind of really wanted to move to this area because I love the skiing and the outdoors and that kind of stuff. So that was the compromise. Moved to Cromwell specifically. We’re looking for houses in Queenstown, Wanaka, that kind of thing, and found a farm 30 minutes south of Wanaka for the same price as a four bedroom home in Wanaka. So that was, you know, my wife’s not an accountant who just loves bargains and once she saw this place and the value for money, she was just like, we’re not, we’re buying this place, aren’t we? You know, I didn’t really have much

Paul Spain:
of a say, but I mean, incredible getting here. And then you get here, we’re looking up this, there’s snow on the mountains, there’s, you know, stunning in the other direction with like Dunstan and so on. I mean, must have been pretty, pretty, pretty hard to say anything other than, yeah, this is a great idea. Yeah, yeah, yeah.

Mike Casey:
I mean the only thing was it was the ideal house that came with nine hectares of land. And so as an entrepreneur I was like, well, this is an opportunity. What are we going to do with it and through, you know, a little bit of analysis, realized what was good to grow here. You know, as I said before, like a child that always was fascinated by farming. So 9,300 cherisheries later, we were, we were on our journey and the new chapter had kind of begun. And this is a, this is my creative outlet now of, you know, when, when I was in my early 20s, a technology startup was ideal. And now I’m in my early 40s with three, three young children, you know, and my wife living here. And a farm is ideal.

Mike Casey:
You know, it’s still business, it’s still amazing. There’s still so much to innovate on and do differently, as you know, that’s why you’re here. It just, this is my creative outlet and I’m just super excited about how successful we’re going to make it. Yeah.

Paul Spain:
Fantastic. Yeah, I guess, yeah. When you look at it, you know, next to, I guess, a traditional, you know, tech startup type business, yes, there’s a, there’s, you know, a lot of tech, you know, involved in, well, anything these days. But you look at the tech startup world and, you know, it’s intense, crazy hours, no guarantees around outcomes. How different is that to the farm? It must be sort of, you know, night and day. You must have been able to spreadsheet out and figure out a lot of things before you started. You know, there’s no hunting.

Mike Casey:
And then you realize how fickle farming is and how markets, markets and weather are both there to screw you over. Right. It is different. Like, I think the, the big thing here is you could see how other people had done it and there was a much clearer path in front. Do I miss the hockey stick opportunity? Sometimes. But would I go after it again? I don’t think so. You know, now that I’m in the position that I’m in, I think, I think with all entrepreneurship, the key thing is not the hockey stick growth, but it’s how proud you are of the business that you are running. You know, you are, your business is part of your identity.

Mike Casey:
And when you’re in love with your business, it’s just amazing what you can achieve. Right. And when you’re not in love with your business, it can be very depressing and all consuming. So, yeah, I just, I don’t know, like, I feel like my. I’m so glad that I did a technology startup and I never want to do one again. You know, I think. And that’s just me acknowledging the fact that I’m at the next stage of my life now, which is, you know, having impact in different ways.

Paul Spain:
So looking at the orchard, looking at the farm, what are the things that you can be most relaxed about versus the, you know, where the, where the variables are? And was there, you know, much surprise to that as you, as you got into the realities of it? Right, Because I mean, it’s so different to the text.

Mike Casey:
The chap that’s just down there, he’s my business partner. His name’s Ewan. You know, he ultimately is the one that does the majority of the farming. So when we started 9,300 baby cherry trees, there’s a lot of work to train those trees and the way they need to be trained in order to be productive. But now we’re at full production. It got to the point where, you know, the orchard didn’t need two full time staff and so he stayed on, he’s become the orchard manager looking after that. I just become, you know, his, his, his really at harvest, you know, pick up all the jobs and do everything that I need, he needs to, he needs done, you know, at that really critical time in harvest. But for the majority of the year, he’s the one that’s doing the tree maintenance and making sure that this orchard runs, you know, like absolute clockwork.

Mike Casey:
And that’s allowed me to go out and do this new thing which is Rewiring Aotearoa and taking what we’ve learned here on the farm and applying that to the whole country.

Paul Spain:
Fantastic. What’s the total output on an annual basis here?

Mike Casey:
Output in terms of cherry volume, money. What do you.

Paul Spain:
I guess both.

Mike Casey:
Yeah. So in a good year we will make about 80 tons of export cherries, which is about 8 million cherries. This season just been, was not a good year and I think we were about 55 tonnes or about 55 million cherries. Prices on the market were good. Damage to the cherries due to rain and cold weather and all that kind of stuff was pretty bad. So we just broke even this, this, this season, which is, you know, unfortunate enough to pay the loans down, not enough to get a return on investment, but the year prior, you know, amazing. And so that, that’s what it goes through. But you know, like in total, all up a really rounded figure, probably about 5 million bucks is what we’ve invested in getting this farm off the ground.

Mike Casey:
And you know, we probably make about, in a good season, $300,000 worth of profit a year off our cherries and about, you know, a bit more off the, a bit less. But you know, off the. Off the electricity from our solar system. So you can sort of see it’s, you know, it’s that standard 10% kind of yield, I think, would be the way that I would describe it.

Paul Spain:
Yeah.

Mike Casey:
8%, 10%, that kind of thing. Yep.

Paul Spain:
And how much variability is there? You know, you. You talked about, was it 55 tonnes?

Mike Casey:
Yep.

Paul Spain:
This last season, how. I guess you probably haven’t been here long enough to sort of see the complete sort of peaks and troughs. In terms of what that can.

Mike Casey:
Yeah, the season prior, I had, I think, 80. I can’t remember exactly offhand. 80 ton, 85 ton, something like that. And that was about the optimum amount. Like, when it comes to growing produce, it’s not just the tonnes, though. Like the size of the cherry ultimately gets a better price.

Paul Spain:
Big cherry. Right.

Mike Casey:
You want to be sherry. Yeah. So those 30 to 32 mil cherries, you might be making 25, 30, 40 bucks a kilo, depending on the market.

Paul Spain:
Wow.

Mike Casey:
You know, those 20, 28, 26s and 24s might be more like 10, $12 a kilo. So it’s really important that you, you know, you get really good at growing good, big firm cherries that are tasty and that’s when the money really starts to roll in. And that is a talent. It’s talent, it’s discipline and it’s luck. And the luck is the weather in particular.

Paul Spain:
And there’s other variabilities, like the different varieties that give you a length of season and, you know, depending on, you know, when different fruit are sort of, you know, maturing as to then where that fits in with international markets. Maybe walk us a little bit.

Mike Casey:
Yeah. So, I mean, most of our cherries go overseas to Southeast Asia, China, and one of the big cherry buying times is Lunar New Year or Chinese New Year. They like to make it difficult and shift that date every year. You know, we’ve got it much easier here with Christmas, as we know exactly what date it’s going to fall every year. But, you know, it can be late February or it can be late January and that just completely shifts things around. So you have different varieties, different tastes. They’re all amazing and their differences, actually. But you’ll always have one variety that was best timed for that sort of lunar New Year period.

Mike Casey:
So, yeah, that’s sort of, sort of the big thing. But the other thing, like, you know, going fully electric and then marketing, you know, the electric cherries brand has opened up all these new customers within New Zealand that now order over mail order, which is hugely awesome for us because we basically sell at export prices, but we don’t have to pay to ship the cherries to Taiwan or Beijing or Shanghai or wherever it might be. So we actually make more money selling to New Zealanders as a result of that. And that’s awesome as well. Every energy nerd and climate nerd in the country now buys electric cherries because of the metaphor of what it kind of shows and does. And as a result, we’re, you know, we’re more secure with. With potentially more profit, which is super exciting.

Paul Spain:
I love that and I love the innovation in terms of the approach that you’ve taken to that. Maybe you can walk listeners through, you know, what are the options that you’ve put up on your website? And, you know, how does that actually live out across the orchard where you’ve got the signs of, you know, a family that’s, you know, sponsoring a particular part of the orchard.

Mike Casey:
You want to.

Paul Spain:
You.

Mike Casey:
We call it adopt a cherry tree. Your whnau can literally buy a cherry tree, you know, in our orchard for a period of time. So we have people adopting them for five years, 10 years, one year, whatever it might be. And yeah, that entitles you to the one tree shares worth of cherries that come out of the. Out of the orchard every year. So it’s about six kilos, and that six kilos will be put in a box and sent straight to your whnau. There’s a lot of cherries really good for parties, really good for festive occasions, really good for the summer holiday period, really good to share around with other people in your community. And I think, you know, we’ve got 9,300 cherry trees and I think 400, 500 of them have been adopted out.

Mike Casey:
And if you don’t want to commit to 6 kilos of cherries on an annual subscription, the other thing is essentially just buying cherries by the box, you know, directly from us during. During season. And that’s been really good for us as well. So, yeah, we sell. We sell at the same gate return as what we get overseas, but we don’t have to put them on jumbo jets and fly them to the other side of the world to get that, to realise that price. And that’s been really powerful for making us more profitable and has given people the opportunity to support our business as well, which has been cool.

Paul Spain:
Yeah, well, I mean, it’s interesting. I’ve got a friend who’s from down this way and he come down to visit his family, brought some fruit back and you know, I, I had some cherries at home and he’s like, Paul, those are rubbish. You know, you’re buying the bottom of the barrel cherries from, from your local supermarket. Here’s what real cherries are like. And I think as kiwis, we, we don’t always, you know, recognize that the best is going, is going, is going offshore. Correct? And then, you know, we, we’re getting that, we’re getting the leftovers because there’s not a big enough market and demand and probably even just awareness, right. I mean, I think we’ve seen in, you know, a bunch of areas where there now is a bit more premium, you know, product available in our supermarkets and so on. But often you actually just won’t, you won’t see what’s going off the shore offshore.

Mike Casey:
Central Otago, best stone fruit in the world.

Paul Spain:
Yeah.

Mike Casey:
Hawke’s Bay. Best pit fruit in the world. Right? And all of that heads overseas. You know, I’ll tell it to you from a farmer’s perspective. So you understand how like, how it works is that we pick all our cherries, they get down to the pack house and they’re graded into, they’re graded by a machine into. Are they really good cherries or are they not, you know, are they seconds? Essentially, the really good cherries are the ones that we want to sell at a high price. Do the New Zealand supermarkets want to buy them at that high price? No, they don’t. So they head overseas.

Mike Casey:
What New Zealand supermarkets like to do is buy the not so good ones at a low price and then sell them to you at a high price. So this is where buying direct from the farmer, whether it’s your leg of lamb or your cherries or your apples or whatever it might be, is so important because that is how you get the best produce, right? It’s the same as walking down to the farmer’s market and buying direct from the farmer. Right? People who do that know what they’re, what they get. And it’s just like when you see a New Zealander try a Central Otago cherry for the first time, it’s like they cry, you know, it’s that good. And the smiles and the, and the cherry juice dripping down the, the kids faces, it’s just like, it’s, it’s absolutely magical. Which is actually probably, you know, one of the other key reasons I got into cherries is they bring joy to the world in ways that no other food does.

Paul Spain:
Yeah, yeah, yeah, Great, great fruit. Great choice. Now what can you, what can you sort of, you know, tell us in, in short, around the, the electric journey and how that’s, you know, come together and, you know, it’s become such an important part of, of what you, you know, do that you’re now as electric as. As electric cherries. Right?

Mike Casey:
Yeah. I mean, the whole thing started. We had to buy a lot of machines to run a productive, you know, farm and economic unit of cherries. And how did it start? Like, first thing was get having to fix an old diesel pump that came with the orchard that kept breaking down and one day getting sunburned because we’re out in the sun all day fixing this bloody pump that just wouldn’t start and realizing this is a bit dumb. Shouldn’t we, you know, buy a new pump and run it off the sun rather than off, you know, fuel source from the other side of the world? That led to, you know, putting solar on the roof because our energy bill went down because we weren’t paying so much in diesel, but our electricity bill went up, so that made solar economical. Then it led to buying, you know, orchard utility vehicles, which are really souped off. Golf carts. We run flat land, 25 km of cherry trees.

Mike Casey:
It’s really good for honing around and, you know, in golf carts. The golf guys had already solved this problem for us. Buying golf carts and putting new off road tires on them and lifting the suspension was a really good way to go. Then it became electric chainsaws and electric cars and stuff because we could run off energy that we could create ourselves. And then we bought too many electric machines and we didn’t have. We weren’t making enough energy anymore, you know, so we had to go and put more solar in. And then we bought electric frost fighting fans and then, you know, electric scissor lifts and mowers and all that kind of stuff. And then the final thing, the thing that we’re running this whole podcast, powering the whole podcast off right now, is this electric tractor behind me.

Paul Spain:
Yeah. Thanks for the juice.

Mike Casey:
Not at all. It’s free from the sun of Central Otago. Thank the sun up there for this. The beautiful power that we get. Yeah. But ultimately that was the final piece of the puzzle. And so when I started this whole thing, I didn’t really plan to go fully electric, but the economics and the doing the numbers and then the passion for trying to solve these problems kind of always led us down that electric path. And by the time we got to 2022, it’s like the last piece that we need is the electric tractor.

Mike Casey:
The trees are growing up now we need a tractor. We can’t get, get buy it without a tractor anymore. And all of a sudden, you know, there was a tractor on the market in San Francisco.

Paul Spain:
It wasn’t exactly on the market. You had to twist some arms to get it.

Mike Casey:
It was, yeah, it was on the US market. It definitely wasn’t on the New Zealand market. And then on the other side of that now, you know, we’ve had our fair share of issues with electric technology because we’re living on the bleeding edge. But I love it. I love being an entrepreneur and living on the bleeding edge and solving problems and demonstrating to others what can be done. You know, that comes with problems like the fact that the tractor still goes, but the company that makes it doesn’t. Yeah, yeah, yeah, yeah.

Paul Spain:
Buying from a Silicon Valley startup, you, you have those risks but, but it’s put you, it’s put you in this, this position where you’re really differentiated from others. There’s, you know, a lot of attention on, on, you know, what you’re doing. How, how does it, you know, stack up for you, numbers wise? I think you mentioned, was it 120k to.

Mike Casey:
Oh yeah, establish your, to run through the numbers super quickly to buy 21 electric machines rather than the diesel machines. We spent about $420,000 more on capital, which was a really like no bank would bank us because they all thought we were over capitalizing in a cherry farm spending another $420,000. It’s a lot of money considering, you know, the total thing probably costs 4 or 5 million to sit up. Right. So, but the operational savings on that was so significant that it was like a 13 year payback period, including the cost of finance on machines that we expect to last 20 years now.

Paul Spain:
Right. And more reliable being electric, just like you were talking about with your diesel pump and that going wrong. When you’re on electric, these things are lower maintenance and high reliability.

Mike Casey:
So pumps and things like that. 100% for tractors, maybe, maybe not quite living on the burning edge. There’s things that go wrong, but you know, that’s part of the journey there. But that was $400,000 including the cost of finances, say 5.5%. Right. But the savings meant that I could pay it off in 13 years now that the bloody Iran war has happened. The savings, it’s just mental, like how fast that’s going to affect the payback period on going down this path. So that’s been interesting.

Mike Casey:
And also, you know, when we include, we’ve got a couple of government grants Demonstration grants for the tractor to import that from San Francisco and the frost fighting fans from South Africa. And so those government grants brought it down to about eight years. So from that perspective alone, totally worth it for our business to go ahead and do this. Especially since we started with a blank canvas and we needed to buy the machines anyway. When you run a fully electric orchard, you use a lot of electricity, a lot. And so that’s what makes solar really, really viable. The complete capital return on investment for those solar panels in the field out there is five and a half years. Right.

Mike Casey:
Because we are saving all this money by not buying power from somebody else from an electricity landlord. And we’re pushing all this power back to the grid and earning a good profit from it now. So that’s $120,000 worth of solar panels. That makes $30,000 worth of electricity a year. If you then look at the fact that you’re saving all this money by not buying it at 30 cents a kilowatt hour instead of generating at 7 cents a kilowatt hour, which is what the amortized rate works out to be. When you cost of finance in this region, in this region in particular, it’s just the savings is huge. Right. And so the thing here is, you know, a lot of people haven’t really paired that up yet when it’s like, well, if you run solar, you want to run electric machines so you can use the energy that you can create yourself.

Mike Casey:
And it’s like the sum of all of this is, it’s greater than the sum of its parts. Right. Like it’s, it’s huge. The way that it works together now is quite phenomenal. And as our staff now, it’s quite incredible. All our staff that work here have all got electric vehicles because they can charge on the farm for free, you know, so it’s a new, it’s a really good employment perk that we can do that costs us nothing that sets us apart. Especially during these times where, you know, the cost of traveling and driving around this country is so, so, so high at the moment. So super powerful.

Mike Casey:
In fact, in the last two weeks we’ve seen, you know, one guy buy the new electric four wheel drive ute, the Radara. And there’s a polestar around here as well.

Paul Spain:
We saw that earlier. I think it’s left here.

Mike Casey:
Yeah, yeah. They’re charging our cars there for free. So we’ve got. Our business has created two new electric cars in the New Zealand market just by being electric. And that’s awesome.

Paul Spain:
Yeah. Now how do you look at before we finish up on electric cherries because I’m keen to delve into what that’s inspired in terms of leading to the formation of Rewiring Aotearoa as a non profit. How do you look at from a business success perspective?

Mike Casey:
Yeah, I mean for now, like, I mean I don’t want to expand this any further. This all shed is my family’s asset, it’s my business partner’s family’s asset. We’re now how do we make, you know, the revenue will probably have a top line amount that we’re going to be able to get that might vary year to year. So now it’s all about how do we run this really efficiently as a family business that returns us good dividends every year like any good investment should. And then the rest of this now is about that’s an asset over the side. We’ve got some investments in other things, other startups, which is pretty cool. And now the other part of it is, well what do we do? How do we expand impact without expanding risk? And so that’s what I’m all about now is telling people the story and doing the numbers on the rest of New Zealand and getting them on the journey, which is what Rewiring Aotearoa is all about.

Paul Spain:
Yeah, fantastic. So, yeah, so it’s, it’s sharing what works, how that’s good for New Zealand, even breaking that down to numbers so folks can come in into your website and actually work out well, you know, should they be generating their own power

Mike Casey:
versus Yeah, I mean I think like, and it’s that it’s education, it’s marketing, it is policy. So telling the government what needs to happen and getting them excited about what could happen if they enact the right policy. It’s from fighting the incumbents, it’s representing New Zealanders against the energy system. You know, like we get shafted at the moment quite frankly by the rules and the regulations that exist that stop us from being paid fairly for this kind of stuff. And we’ll get.

Paul Spain:
So if you’re selling back, back to the grid for most, most Kiwis, it’s not necessarily a great transaction.

Mike Casey:
It’s not a true reflection of the value of the power and the contribution that you’re making. Yeah, so we have to fight for that. We also have to fight for the equity piece which is, you know, you and I are on our journey somewhere along the way and we can afford to do this. Most of the people that are listening to this show can probably afford to do this or their parents can afford to do this or, you know, and so that’s really powerful. What do we do about all the New Zealanders that can’t afford to do this, that could benefit so massively from it being done? So those are all, you know, parts of what we’re, you know, really, really trying to work on. And I think, like, if we use the analogy of fish burners, you know, it’s like New Zealand is now one large co working space, right? We’re all doing different businesses, but what can we all do together? What is in the New Zealand’s best interests, you know, is something that I’m really, really passionate about. This is moving beyond politics. This is no longer left versus right.

Mike Casey:
This is New Zealand people’s interests versus the vested interests of people that are not the New Zealand people, you know, and, you know, whether that’s big, you know, big, big corporates that are in New Zealand or whether that’s overseas energy companies, whatever that might be, representing what’s best for New Zealand people is ultimately what I care really deeply about now and probably am in a fortunate enough position where I have enough security to have the time to care deeply about that.

Paul Spain:
Yeah, yeah, that’s fantastic for our listeners. What would be, I guess, your biggest, you know, tip of something that listeners could sort of put into action in terms of how they, how they, you know, operate or lead in business today. And then maybe we’ll, we’ll come to sort of recommendations on, you know, from an electrification perspective. But from your journey, you’ve got so many lessons and so on.

Mike Casey:
I mean, if we look at, you know, what’s the thing that I’m most happy about that I ever did was to quit my job and start a company. Right? So the first thing is anyone who’s looking at starting a company now, it’s Friday that we’re recording this, resign on Monday, get in there, give it a crack, get it done. All those opportunities will open. Fortune will favor the brave the moment that you’re in a position where you’re actually doing this. So that’s my number one piece of advice, is just commit and go in and get it done. And there will always be the opportunity on the other side. If things don’t work out, there’ll be new opportunities that come about. And especially if you’re young, if you’re in your early 20s, you might have a girlfriend or a boyfriend, but you might not be married yet, you might not have a mortgage, you might not have children.

Mike Casey:
Now is 100% the time to do it. As it gets older and you’re married and you have kids, it’s substantially harder. There’s more commitments, more responsibilities, that kind of thing. So that would be the number one thing as you’re building a business. My favorite saying in entrepreneurship of all time is you can’t trip a centipede. The more customers that you have, the better off you are. The more investors you have, the better off you are. If you behold them, it’s very easy to trip a one legged man, isn’t it? So making sure that you’re building a business that is scalable and something that can be used by a lot of people is also super important.

Mike Casey:
And I just think this, it’s often romanticized, building startups and selling startups and exiting and being wealthy and all that kind of thing. None of this is an overnight success and don’t trick yourself into thinking it is. And I think, you know, in startup world in particular, mental health issues are a real problem. And that’s because we always look at all the people that are doing well and never really look at the people that maybe aren’t doing so well. And you know, there’s a lot of businesses that will never succeed and a lot of entrepreneurs that will never quite get to that glamorous exit that everybody like, thinks about. But there’s so much that can be learned along the way, you know, And I just think, look after yourself, realize that it’s not all roses on the other side, you know, And I just cannot get over how much of a lesson that I went through, a journey that I went to, to now beat in the position that I’m in. I’m very thankful for the position that I’m in. But you know, that journey was hard work, real hard work, and it was combined with a lot of luck.

Mike Casey:
And that’s the other thing I want to stress, you know, those, those people out there that would say, oh, I worked hard to be where I am, don’t understand the realities of the situation. Yes, you worked hard, but you also had a lot of luck.

Paul Spain:
Yeah. And there’s a reality that it’s also not for everyone. So there is that weighing up that everyone needs to do. If you, if you’re going to make that commitment and quit the, quit the job of kind of, you know, listen through the podcast, look at the hardest stuff people have to deal with because you’ve got to commit to that. Because as you say, this is something that takes a. Oh, and I could

Mike Casey:
not have done this without the discipline of my wife and she is not an entrepreneur at all. You know, like, and I think that’s super important to acknowledge and understand as well that our relationship works in our business and our success has worked because our skills complement each other and our thinking complements each other. We would be bankrupt 30 times over if I was the one in charge of the money. But you know, at the same time, she freely admits that we’d probably be living in a three bedroom house in suburban Wellington if I wasn’t in charge of the, the risk taking. So, you know, it goes both ways. And yeah, there are plenty of people out there that might be interested in entrepreneurship and tech that might not want to be in a position to start a technology startup. Katie Pie, that is absolutely fine. Like it’s your journey and you’re on it and you’re the one at the wheel and you get to steer it in the direction you want it to go.

Paul Spain:
Right? Yeah, yep. And, and for those who are, who are interested in, you know, using solar or, or other New Zealand generated energy, what is your, your general recommendation to, to, you know, business owners?

Mike Casey:
Yeah, for business owners it’s like there’s machines that you’re going to have control over, there’s machines that you’re not going to have control over, especially if you’re renting the property. But just doing the sums is super important. You’ll be shocked, I think, at how much money you are leaving on the table by not electrifying and not running off New Zealand made energy and not putting solar on the roof. And especially if you’re a CFO or an accountant and you’re listening to this, make sure you do the numbers. Because I think it’s a discipline that is. Energy economics is a discipline that’s missing from finance in a big way at the moment that we need to really get on top of. Because when you do it you’re like, wow, even the amateurised cost, this is just an absolute no brainer. And so, yeah, that’s where I would land.

Mike Casey:
You know, negotiating with the landlord. Putting solar on the roof is an expense that they will have to pay, but you can contribute towards that and still save the money by not buying it from an electricity landlord. Right.

Paul Spain:
So yeah, we’ve all got to pay for power.

Mike Casey:
We’ve all got to pay for power

Paul Spain:
in one way or another.

Mike Casey:
And I think that’s the other thing to keep in mind is that, you know, people are like, oh, the capital expense is too high, I’m not going to do it at the moment. They neglect to Think about if you don’t do it, the opportunity cost is continuing to pay their electricity or their energy landlord for as long as you’re not doing it.

Paul Spain:
It. Yeah.

Mike Casey:
And that is a substantial amount of money. When you add it up, you’re going to run that business for the next 10 years. It’s almost certain you’re better off in electric machines. You don’t have to do it all at once. The next time a machine breaks, make sure you replace it with the electric option. If you’re a restaurant owner, when the gas cooktop gives way, put an electric induction cooktop in the stead. Yes. There’s a bit of change involved with doing that, but you’re not going to be gassing your staff for a start.

Mike Casey:
That’s a really good thing. It’s going to be a lot cooler and more comfortable to cook in the kitchen, and it’s going to save you a lot of money. You know, like, that’s powerful.

Paul Spain:
Yeah. Excellent. Well, Mike, Casey, thank you so much for your time. It’s been a real privilege to come out here to electric chairs and thank

Mike Casey:
you for coming down. As you know, I love to talk and I love to talk about myself, and you’ve given me a great opportunity to do that. So thank you for those that are, you know, still listening. Thanks, Abs.

Paul Spain:
Okay, Cheers, Mike.

Mike Casey:
Talk soon.

Paul Spain:
Ciao.

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Tony Falkenstein: Just Water entrepreneur

Posted on 5 Jun 2026 in Featured, Podcast

Tony Falkenstein: Just Water entrepreneur

Tony Falkenstein shares valuable lessons learned from building the Just Water brand, moving the Just Life Group from the NZX to the Unlisted Securities Exchange (USX). He also unpacks his passion for fostering entrepreneurship in schools, the impact of business education, and the driving factors behind successful startups.
We hear Tony’s approach to building strong company culture, embracing technology and AI, and supporting the next generation of Kiwi innovators. Whether you’re a business owner, investor, or aspiring entrepreneur, this episode is packed with practical wisdom and real-world insights from a true leader in New Zealand business.

Special thanks to our show partners One New Zealand, Outrun Global and Gorilla Technology.

Listen to the Podcast Here:

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Paul Spain – LinkedIn
Paul Spain – CEO, Business & Tech Commentator, Futurist

You can keep current with our latest NZ Business Podcast updates via Twitter @NZ_Business, the NZ Business Podcast website.

 

Episode Transcript (computer-generated)

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Paul Spain:
I’m Paul Spain, futurist and chief executive at Gorilla Technology. I love contributing to the success of of individuals and their organisations. New Zealand Business Podcast is all about this by helping you learn from our most notable leaders. In this episode I chat again with talented just water entrepreneur and keer world class New Zealander Tony Falkenstein. We delve into new insights from his business journey, including recent pivots and acquisitions and his approach to helping the next generation of of entrepreneurs which is one of Tony’s passions. New Zealand Business Podcast is brought to you by One New Zealand alongside Gorrilla Technology, tech enablement and cybersecurity risk reduction experts and Outrun Global – remote staffing to help your local teams work smarter, not harder. Before we jump into the interview, if you work in a mid size or smaller organization, think about this.

Paul Spain:
Does your organization truly have its house in order from a cybersecurity perspective or would Gorilla Technologies Cyber Audit Service help give you more visibility and confidence? Real privilege to have Tony Falkenstein joining us in the studio again. How are you Tony?

Tony Falkenstein:
Excellent. No, it’s a real privilege to be here again. Yeah, twice.

Paul Spain:
Nearly four years since we chatted last time and lots of things have obviously happened in that time. When I listened back to our previous chat I realised, oh, there’s a few areas we could delve in a little bit more and there’s some other things that you’ve been involved in in terms of encouraging entrepreneurship, particularly in schools recently and also university system. So keen to delve into those things. But maybe before I fire pepper you with lots of questions, any highlights when you look back on these last four, four year period, you know, stands out for you.

Tony Falkenstein:
Well, I think everyone’s got to look back at Covid and say pre Covid and post Covid. There seem to be a lot of changes there just generally.

Paul Spain:
Yeah, yeah, yeah. Oh definitely. And I know you know you’ve been very much close to what’s been going on on an AI front and following that with a lot of interest. So maybe we’ll get some time to delve into that side of things as well.

Tony Falkenstein:
Terrific.

Paul Spain:
But, but yeah, first up I was thinking it’d be great to hear a little bit more around Your story with taking your business, which was just water, became Just Life Group and taking that through the process of an initial public offering an IPO on the NZX and becoming a listed company. And what were the pros and cons of that? Cause you’ve made some changes. Maybe we can go back to the beginning of that story.

Tony Falkenstein:
Okay, that’s going back a long time. But prior to starting the company that I’m in now, I was chief executive of another public company. And I always thought we started this one, we said in five years we’ll go public again. Well, it took 15 years. But the main rationale when we did it was not to raise finance, but more from a public image where you look bigger than you are. And one of the things I suppose I learned from years before another company was always try and look bigger than you are. And so that was a reason for the IPO. I mean, we only raised $8 million.

Tony Falkenstein:
We didn’t really need it, unfortunately, we spent it wrongly. But that’s life. That’s one of the badges was this

Paul Spain:
sort of moving into Australia.

Tony Falkenstein:
Moving into Australia, yeah, that wasn’t a good investment. So being public, I mean, it has this advantage when things are going well, it’s great. But I also found that when things are going bad, you just keep your head in and nobody wants to talk about it. When a company relatively small size, the challenge for a smaller company is you have to do everything the same as a big company. So you need an annual report which is 160 pages long and with all the glossy photos in it, you have to have all that and you have to go through the same processes, same order procedures. And where larger companies would have one person say on health and safety or on some other, you know, some other part of the business, as a smaller business, we wouldn’t have those. And so it is just a lot more difficult, so, and a lot more costly. So we sort of saved by moving off the NZX, we saved about $400,000.

Tony Falkenstein:
And it wasn’t the fault in effect of the NZX. I mean their fees are, you know, that much. But all the other things that go with it, the legal fees, you know, you have to use a top legal firm and all the time you do not want to breach the NZX rules and the takeover rules and all that. And so everything almost goes past legal. And then the audit again, the auditors, you have to use, you know, top grade audit firm and again they’re just a lot more expensive than the mid sized audit firms. So all the Overall costs that came to about $400,000 we saved by moving away from the NZX.

Paul Spain:
And how did that number look in terms of annual profits for you? If you’ve got another $400,000 in there, how much difference is that making?

Tony Falkenstein:
Unfortunately, it didn’t make that much difference because it was just after Covid. So we saved the money, which kept profitability and kept it about the same as it happened.

Paul Spain:
But if you’d been 400 less, then. Yeah. So it’s helpful in the scheme of things, right?

Tony Falkenstein:
Yeah. I mean, I think that we just couldn’t take advantage of the public system in terms of raising capital. And that’s where we said, hey, it’s not really. We didn’t see that happening within the next five years. So he said, hey, let’s go on to the usx, which is unlisted stock exchange, not us for format. And that’s what we’ve done.

Paul Spain:
Yeah, yeah. And I mean, did. At any time did you think about, you know, pivoting and changing the business? Because I know, you know, you’ve mentioned to me about, you know, investing in, you know, quite a range of other, you know, other firms and, you know, having a kind of investment arm or, you know, building out in, you know, other directions. And obviously you’ve had acquisitions as well, and I’m keen to delve into a little bit on that front.

Tony Falkenstein:
Yeah, I mean, we decided to. So once we got over the pains of the Australian venture and got the bank happy, we looked at going into, I suppose, a construction area or the periphery of it, and started a healthy homes division. So bought a company from Wellington Home Tech and we went with that. And then from that we added on the cylinder guy. And then on the healthy living side, where we had just water, we added. We bought three supplement businesses. Now, unfortunately, we bought the healthy homes businesses right at the start of the downturn, the construction sector. And so now we’ve only got Solar tube, which is a good, great brand.

Tony Falkenstein:
And it’s done, you know, it’s people who. It’s sort of. It’s not for new business, not for new houses. So, you know, so that’s been a nice little unit. But in fact, the rest of the construction, ventilation and what have you, we’ve virtually got out of it.

Paul Spain:
Right.

Tony Falkenstein:
Right on the healthy living side, and that’s where we want to stay now, the supplement business, we, you know, we like that business. And so that’s one that we will continue in.

Paul Spain:
And so how did that change come, you know, come about and what were the opportunities that came up there.

Tony Falkenstein:
Well there’s some learnings here. So one of the learnings because we made two mistakes, one of the learnings is never buy a one man business that’s owner operated. And the reason is and we’re not big business but a medium sized business finds it really hard to run a one man show. And so we bought the Cylinder Guy which is, which was a really nice business but in terms of our overheads and things it just didn’t work. The guy we sold it to and we know him well, you know he’s going extremely well. He lives, you know, that’s what he does. He lives for Cylinder Guy.

Paul Spain:
Gotcha.

Tony Falkenstein:
One that we made a serious mistake. We only just sold it this week. In fact within the healthy living area we thought we’re in supplements, we should be in natural cosmetics and bought a business called Loveskin a year ago. Exactly 12 months ago and we just sold it this week.

Paul Spain:
Yeah. Okay.

Tony Falkenstein:
And again learning we should not be in a one man business.

Paul Spain:
Right. Yep, yep. Just didn’t work for you.

Tony Falkenstein:
So now we know we’re going to stick to our knitting and.

Paul Spain:
Yeah.

Tony Falkenstein:
And you know make the businesses we have grow and see other opportunities. We won’t go outside that healthy living area now.

Paul Spain:
Yeah, yeah. So walk us through what else you’re doing in the healthy living supplements sort of side.

Tony Falkenstein:
Well in the company we bought about Health Main one which was quite a significant purchase but they have two products in particular which was Leicester’s Oil and Resv Resveratrol and Those are really two really good products. They’ve been advertised, they’ve been on ZB for 20 odd years and so we’re certainly we’re growing those. We’ve put them through into before we were totally online. So now I’ve gone to a bit of retail terms. The other one in terms of Herbalignite, another one that’s been advertised radio for 20 odd years. We put that into Chemist Warehouse and from being an online business and now chemist warehouse takes 50% of that revenue. I mean they are such a powerful machine.

Paul Spain:
Right, right. And when you do something like that do you find that your existing business sort of gets cannibalised by the retailer or are they really, you know giving you a really big uplift in terms of your overall sales?

Tony Falkenstein:
Yeah, they give us a big, big uplift. I mean some people obviously will go over. We sort of make a different, different sized product because you know just a 30 day product for chemist Warehouse. While a lot of our online customers just buy Three months at a time.

Paul Spain:
Right, right. So you can differentiate a little bit of what you put out in that different market. So tell us a little bit more about that. You know, that acquisition of. About Health. I know we touched on a little bit last time. What was it that, you know, that led you to show interest in About Health as a, As a business initially?

Tony Falkenstein:
Well, I had actually been in a. In a supplement business in a past life and so I really liked, liked the business. This one we tried to. We tried to buy previously and I’d gone to the, to the founder and anyway, it didn’t quite, quite work. And then when I rang him three years later, he said, well, we’ve sold 30% of it.

Paul Spain:
Oh, wow.

Tony Falkenstein:
Talk to these people. And so he did. And then we bought it off them. Yeah, so that’s how that went.

Paul Spain:
And when you look back at that, do you know why they didn’t come back to come back to you? Was that it was just, I think, just naivety.

Tony Falkenstein:
Just didn’t think about it.

Paul Spain:
Yeah, yeah, okay.

Tony Falkenstein:
Probably got approached by these guys and yeah, some of them sell down a bit. The great thing about that business is I’m in the age bracket that takes those sort of supplements. And so the 55 plus, as a consumer, they’re very sticky. They tend to buy a product that they like and they stick with it. The younger supplement buyer. And supplement is a big growth area by younger people, but they tend to like this now and then that and they go from one to the other. So we like that sort of customer. And it’s a different.

Tony Falkenstein:
And the younger marketing people don’t understand it because they say, oh, we have to be on social media. But this 55+ does not. They look at Facebook and what have you, they will never buy off it, while younger people will. They’ll see something and, oh, gee, we must get that. And so you have to go back to the old traditional radio, press and tv.

Paul Spain:
Fantastic. Now, one error of your IPO was that you gave away a significant amount of shares at the time that you listed. How did that happen and why did you do that?

Tony Falkenstein:
Well, I’d always been. Well, the story is in 2001, this global entrepreneurship Monitor came out which showed that New Zealand was number one in startups. There’s 28 countries and number five. Number. Sorry, 28 of the startups lasting five years.

Paul Spain:
This is a sort of per capita type type thing. Yeah, yeah. And so. Wow. Yeah, that’s a problem.

Tony Falkenstein:
Yeah. So anyway, so I was. We were living in London at the time and the principal of Anahunger High School, which is a school I went to, he was over in London on a Wilf Fisher scholarship. And so he came and lived in our flat for a couple of days and we went down to the local restaurant and drank a bottle of wine and, and I said to him, chris, I think we should do something. Why don’t we start a business school at one Hunger? And he oh yeah, you’ll bring a proposal to me when you get onto the board. And so the next year when we were back, I did give a proposal to him which was really that to me the business education is a key to economic prosperity. And people who are in areas where they’re not, they don’t learn about business, their parents are tradesmen or whatever and so they don’t talk about business around the dining table, which is probably something like 70% of people. They’re not getting the same opportunity.

Tony Falkenstein:
And yet they are the people that know what struggle is about. They’re the ones that have a lot of the attributes that will make them successful. And so in fact, if you talk today to most business people that have started their own businesses, most of them don’t come out of, out of wealthy families, they come out of that. They just have much more the resilience to keep on going ahead. Now if they have the education, I can see that they’re really going to make this country explode. So I thought if I’m going to do anything, that’s where I want to focus.

Paul Spain:
Fantastic. And yeah, I guess, you know, I know when, you know, when we’ve looked at who our listeners are, we’re not hearing that there’s a whole lot of, you know, youngsters from high school, but there is that growing interest in entrepreneurship in startups because of the story that’s been created by the successes of the, you know, on the global scale. The sort of Elon Musk’s and Bill Gates and so on and of course, you know, here in New Zealand the likes of, you know, Peter Beck and others, so, you know, that’s really created a level of interest that, you know, wasn’t around, you know, 20, 30 years ago. So now that that interest is there, you know, what did it look like to get the business school started with one Hunga High? And what was the interest?

Tony Falkenstein:
Yeah, well, just first of all, just to comment on that, to many of them it’s just such a faraway dream. They don’t even think about it. Like, you know, it’s like being an all black. They’re so Far away that they, they can’t even dream that. And, and don’t even understand what it’s all about. So, so when we started the business school at One Hunger it was, I mean that was like a startup. We made lots of mistakes but, but it got underway and Chris Saunders who was the principal was very enthusiastic about it, became very enthusiastic about it and we hired a head of the business school and he was very enthusiastic about it. So we got to after the first year, once we had the business school going, a school that couldn’t fulfill their role was over subscribed.

Tony Falkenstein:
They picked students from all over Auckland who wanted to come because they’d heard about this business school Danny Hung. So it was really an enormous effect to such a degree that to some degree bad because the decile went from 3, 3 to 4 which means they get less money from government but they had, you know, a lot better students. Everything went, everything went up from there.

Paul Spain:
Wow. Wow. And the way it worked with your trust because you did one that was focused on being on the high on high school and then you had another trust in terms of supporting Auckland University.

Tony Falkenstein:
Yeah. So initially, well we had that trust for the university business school and it just sort of started developing monies and we spent a few things here and there. Anyway, probably about six years ago we came up with this program which we started which was taking the around 18 to 20 students to Silicon Valley in San Francisco.

Paul Spain:
Fantastic.

Tony Falkenstein:
Each year and so that’s now a 10 year program, fully committed and most of that’s from the, you know the dividends have come through from, from the company so, so we call, it’s called the Vanguard program and students are selected and, and we go, we do about last year we did 25 visits in a week. So really full on. But from us, from, from my, you know, I go on it. I mean you see some of the stories. Tim Brown, you know we saw him three or four years ago and then through his IPO and then down the other side obviously we’ve seen the guys from Halter we get to see up there. We go to Stanford, we go to various places on this, you know on this last visit I didn’t even realize we were talking to this guy I had taken back in my one hunger days to Silicon Valley and he says I remember we were in this company in Silicon Valley and in, yeah, it was in Silicon Valley and I thought this seems, it’s funny, why should it be here? Why can’t I make a global business out of New Zealand or anywhere else in the world. And there he was now. And I’m sorry, I forgot, I can tell you later on what the company was, but now it’s a global player.

Tony Falkenstein:
It’s seen as Australian one because his partner’s Australian. But, you know, he said, that was the thing that really got me going. I’m going to do a global company.

Paul Spain:
Fantastic.

Tony Falkenstein:
So that sort of thing gives you a hell of a lot of pleasure and seeing some of the success stories that come out from, you know, One Hunger and from. And from the university business school.

Paul Spain:
Yeah, brilliant. Brilliant. Yeah. I think we’ve got to keep looking for those opportunities to, yeah. Inspire and educate and get started in the world of business and entrepreneurship. You know, we’ve got to do more of that with youngsters. So, yeah, it’s great what you’ve started on that front now. More recently, Waitakere College is kicking off with the business school as well.

Tony Falkenstein:
Yeah. So Waitakere College is similar to anehanga. It’s had 50% of Polynesian or Mori, probably about another 25% come from various places, India and all sorts of places. The other 25%, European. Again, it’s a school where, again, most of the students don’t have the opportunity to really understand what business is all about. So it’s a really good. It was a really good school and a very good principal who is like Chris Sorn is very enthusiastic about doing it. And so, you know, the Ministry of Education opened it just a few weeks ago and, you know, we’re doing.

Tony Falkenstein:
We’ve done visits to Zeal, to Anna Mowbray, to our bottling plant. I’ve been behind the scenes. Auckland football, behind the scenes at Blues. We’re going out to Babbage Wines. We’re going. Mike Hutchison’s talking to us about advertising. Liam Dan is having a chat to us. So, again, these kids are seeing things and it’s.

Tony Falkenstein:
Ooh. I mean, I just can’t believe it. Some of these kids are just. Yeah, they just can’t. It’s like they’ve just never seen anything like it before.

Paul Spain:
Yeah, yeah.

Tony Falkenstein:
And suddenly they’re exposed to that and. Yeah, and they’re really coming up with some, you know, some good ideas.

Paul Spain:
Yeah, fantastic. And in terms of how long would you expect to take to get that business school, you know, established and I guess seeing results like, you know, how quickly do you see that kind of impacting the way people are thinking and then, you know, operating in terms of launching their own things?

Tony Falkenstein:
It happens in different ways. I mean, some, when I look at some of the only. Well, if I look at the girl who runs mocks brands from, who came from the Yara Hunga Business school and she, she worked for Anna Mowbray in China and what have you and then came back and so she’s probably be in her mid-30s, but now started her own company and I think Mox was the biggest growth company or something in New Zealand last year. Her sister who also went. Came to at that stage, went to New York with us. She’s a global, global manager for one of the big travel companies based out of Amsterdam. So they carried different ways. Another girl who very quickly from Ayla Hunger, started a business which was fantastic.

Tony Falkenstein:
It was called Stay Today. It was too early and she went right around hotels so you could book it on the day and so you got the best rate and so she’d go to hotels and, and just got a. I think it was 25% commission and got them to understand that. And after a couple of years it sort of. She really couldn’t get funding, et cetera. And after she got out of it, you know, the big ones came in and you know, they’re now worth billions of dollars that do that same sort

Paul Spain:
of thing, copy the same, taking the same approach.

Tony Falkenstein:
And so she’s now gone to a corporate area, but now she’s looking to set up, you know, do something, do something different.

Paul Spain:
Yeah, yeah.

Tony Falkenstein:
By yourself.

Paul Spain:
Yeah. Great to hear these stories and know that it’s, it’s having an impact.

Tony Falkenstein:
See, all you’re doing is opening up their eyes and that’s what I’m really looking for. Open up your eyes. Hey, there are opportunities out there, whether you, whether you do it yourself or whether you work with someone else. But don’t just stop at, you know, at your little suburb and say, hey, that’s as far as I’m going to go.

Paul Spain:
Yeah, yeah. And in terms of, you know, how that’s worked with establishing the trusts, giving them shares in the business. And is that something that, you know, was an initial kind of donation or seed investment into the trust or is that something you needed to keep funding in other ways or the shares and dividends, you know, effectively kept that able to operate?

Tony Falkenstein:
Yeah, generally the dividends have been enough to cover everything. And there’s certainly quite a bit in the New Zealand Business Education Trust in terms of university, because I wanted to commit to 10 years. Also wanted to make sure that the money was there in case I carcut or something. So that took a bit of personal stuff put in to just add to the fund.

Paul Spain:
Yeah, yeah. And how do you do that to, you know, or how does the university, you know, do their part to make that work? Because it’s not a low cost thing to be flying people up to Silicon Valley.

Tony Falkenstein:
Yeah, well, this thing, you know, it costs. I know. I think it’s around about 120,000 a year to do this trip, which is increasing. Fortunately, they do all the background work. So they assess the people who. They not only have to fit the. You have to fit the criteria that they’re going to be okay to tour. And each group we’ve taken really just been fabulous students and just smart students.

Tony Falkenstein:
Boy, they just. You don’t want to, you don’t want to be at the front of the front of the front of the room with these questions that get asked. I mean, these guys are really good.

Paul Spain:
Yeah.

Tony Falkenstein:
I can tell you a story on, I mean, from the last trip, one of the guys had such a great background story. I mean, I, you know, I just fell in love with the story. I said, this guy is gonna, he’s gonna make it, right? And I still can’t understand what it is, but it beams light off satellites and all this data and comes down on the earth and it can say, hey, you’re having enough potassium in your land here or enough nitrogen or too much whatever. And he was so enthusiastic about it, I said, hey, listen. But working office just had no money at all and nowhere they were scrounding around to get a room at the BNZ they used and other rooms just to operate from. So we gave them some space in our offices. And I said, listen, if you get the funding, I’ll in fact put some money in. And so last week he did get $750,000 from Icehouse, Icehouse Ventures.

Tony Falkenstein:
And since then he’s had K1W1 and others coming in who also wanted to be in this. He wanted to do 1 million, which would put a market cap of 4 million. And this kid left home when he was 14, got a little scholarship to Delhi University, got over to the us, did something there, came down to New Zealand. Always living off smell of an oily rag. Even a few weeks ago, he says, I just have to get to this conference in Colorado, which he’s going to next week. I had the money for one way. And so he always finds a way, though. And he says, I wrote to them.

Tony Falkenstein:
And I said, hey, listen, I can present a paper there, which is, everyone’s going to be worthwhile, but you had to pay my one trip back.

Paul Spain:
Yeah.

Tony Falkenstein:
And so, and so they agreed to it and so now he can get back. And on top of that, since he left home, comes out of a village in India. Since he left home, he hasn’t been back. It’s been 10 years.

Paul Spain:
Wow.

Tony Falkenstein:
So he’s going back to see his family.

Paul Spain:
Yeah.

Tony Falkenstein:
Really great.

Paul Spain:
Well, it’s so exciting to, you know, to see and hear these stories, you know, coming through. And as you talked about the beginning, you know, we, we seem to generate a lot of startups, but of course we’ve got to make, we’ve got to make it work so that we’re getting, you know, success building successful long term, you know, businesses that, that do well and, you know, good for our economy and for our people.

Tony Falkenstein:
You know, even this guy, I mean, just naive about a lot of things. And although I don’t understand the whole process that he’s in, I can at least advise him and you know, some of the, some of the security on this data was so important to him. He wasn’t protecting and just a lot of smaller things that I could just give him some advice on.

Paul Spain:
Yeah, yeah. Oh, that’s, that, that’s great. And look, I think, you know, we need to do, we need to do more of, of what you’re doing in terms of investing into, you know, that next generation of founders and entrepreneurs in terms of, you know, your, your approach. You’ve mentioned that you would invest with him. Have you got a particular approach that you follow when it comes to investing into other firms? Cause I’m sure there’ll be lots of people who have knocked on your door in the past and that will continue. How do you decide what to invest in? How much of it is the idea, how much of it is the founder? You know, how do you evaluate those sorts of things?

Tony Falkenstein:
Well, I have to say I’m not really a big, a big investor. I mean, I’d rather, I do get asked all the time. Like this one was just loved the kid, loved what he had done and very presentable. Otherwise. Now I’m really only doing things through the company, through Just Life Group. Otherwise if I buy it, go at the investment market, I tend to buy at the top and sell at the bottom. And I don’t think that’s a good investment strategy.

Paul Spain:
So, yeah, I guess there’s lessons in there probably for all of us. Right. You could be very good at these things at business and entrepreneurship, but I guess it doesn’t mean that we should all become investors.

Tony Falkenstein:
That’s right. I mean, I’m much more better at an operational point of view and proved that I’m not the best investor.

Paul Spain:
Yeah, yeah. Was there anything else on about health you think might be of interest to listeners?

Tony Falkenstein:
You know, I certainly like the target market we’re in and understanding that consumer. And I think although they might be dying off, there are others coming into that market, but they are, they’re just a reliable consumer, which makes it a lot easier as a marketer than dealing with the, you know, under 40s.

Paul Spain:
So there’s a lot to be said about understanding your customer, you know, deeply. And when you know, when you have that knowledge and that understanding, you know, it becomes much easier to deliver what they want and to make a, make a business really work.

Tony Falkenstein:
Yeah, no, absolutely. I mean, they don’t want to be, they don’t want to feel as though they’re being sold to and they want to feel as, they want to feel confident in a brand. And so it’s a. Yeah, I mean, we, who else? I mean, we deal with, say, Herbal Ignite is a bit different there. We, you know, we have to go out and really, you know, talk to those customers and in a different, totally different way.

Paul Spain:
Yep, yep, yep. And so what? Because you, you run radio advertising there as well?

Tony Falkenstein:
Yeah. So in fact, the product got invented by former radio DJ Tim Bickerstaff, I think. Okay, so he invented the product and so, yeah, we’ve been on radio for 20 odd years with that product. But it’s quite a, you know, it’s quite a sensitive product to talk to. I mean, we sort of say, hey, it’s a natural alternative to Viagra. And so it’s. But it makes it. We thought we could do it in the US because I’ve been up there and there’s nothing really that’s like that in the market.

Tony Falkenstein:
But I mean, we had a year’s time before the next show up there to get onto Amazon and you really have to be on Amazon to be in the US market because you just go to Amazon first to see if it’s there. If it’s not there, you’re not even, you don’t even get in touch. We just, we used the best lawyers we could find in the us Et cetera. We could not get onto Amazon. You don’t have to mention anything, you know, libido or something and nah, you’re out. And then, I mean, they did everything to try and stop us. In effect, they, they didn’t like, you know, we had, there’s a central testing, worldwide testing authority that tested our product and now they Wanted different worldwide testing and they did everything. So in the end we said, hey, we’re better off not being there.

Paul Spain:
Was that when you acquired, you know, the product, was that part of your view was international expansion for it was that kind of part.

Tony Falkenstein:
We did think that there was a, it was a nice niche product. And you know, we said, hey, we can’t really go with a mass product line because there’s so many, everybody’s in it. But maybe with a niche product we could go there and we’re still, I mean, we haven’t lost sight of that. I mean, you know, there are other markets, particularly, you know, the Middle East. I mean, Chemist Warehouse are now up in Dubai and we look at that market, we think that’s a market that could take it.

Paul Spain:
Yeah, that’s an interesting approach, isn’t it? You do deal well with a local retailer with a global presence and you might well be able to, you know, stretch out through, through that channel.

Tony Falkenstein:
Yeah, I mean that’s we, what we like about Chemist Warehouse is, you know, if you see that line going up there like that, it becomes a lot easier to get into the next market, into Australia and into anything else they’re in.

Paul Spain:
Yep, yep. And obviously Chemist Warehouse, I’m presuming they’re an Australian, you know, they’re Australian founder chain. They’ve done very well here in the, in the New Zealand market. What are you seeing from New Zealand players? You know, there’s a little bit of, you know, activity and you know, we like to have Kiwi owned companies but sometimes it’s really the international players that will come in and kind of show us how, you know, how retail or other areas of business should be done.

Tony Falkenstein:
Well, just a story on that. So Jack Gantz, who owns Chemist Warehouse, he and I launched Listpex in New Zealand way back in the early 80s.

Paul Spain:
Yeah.

Tony Falkenstein:
So he and I are very, very good friends and we’re in a business group together that we meet once every three months. But yeah, I mean, just done a fantastic job.

Paul Spain:
Yeah.

Tony Falkenstein:
So, you know, I think there’s, there’s another discount pharmacy that started here. I mean they are doing very, very well in New Zealand. In Australia there were a lot more, there’s a lot more competition at discount end and there. But I think they’re finding New Zealand just unbelievable.

Paul Spain:
Yeah, well, yeah, I think there was, there was certainly a gap, you know, a gap in the market there. So yeah, well, well done to them. Now something else that, that you’ve done is you launched the entrepreneurs Organization here in New Zealand. Going back what, around 30 years ago.

Tony Falkenstein:
30 years ago.

Paul Spain:
Tell us how, how that came about and you know, what does that look like today?

Tony Falkenstein:
Well, I was in another organization and telling you how long ago it was called Young Presidents Organization.

Paul Spain:
Ypo. Yeah, yeah.

Tony Falkenstein:
And I must have gone to the bathroom or something because I came out and they said, hey listen, you’re launching EO in New Zealand. And so I got six, around about half a dozen people together and we got it launched and then we started. One of the Americans came down. So it’s an American based organization and since then, you know, we’ve worked, had about a thousand people go through but they’re, you know, there’s about a hundred members of it and I’m still a member. I mean you get enormous benefits from, because whether they’re, you know, whether a smaller business. So they all have to have it have a minimum turnover of a million US dollars. So they’re just past a startup stage. But a lot of them have got, you know, 100 million.

Tony Falkenstein:
In fact, I went to one conference in Hong Kong and met this guy who’s asked him, what do you do in transport? Anyway, in the end he owned Cathay Airways. So it doesn’t matter what level you are, you all run through, you go through the same sort of things, the ups and downs of just being in business. And so it’s a really, you know, people call it their tribe. It’s like, you know, that’s what it is. Everyone’s in, everyone’s the same in terms of the things they go through.

Paul Spain:
Yeah. Fantastic. And so, you know, first of all with YPO and then with eo, what did you, you know, personally, you know, find was most helpful because I guess, you know, every leader, every organization, you know, probably has different challenges, but also with so many similarities, there’s bound to be somebody else that’s been through something similar or got some expertise that they can share. So you know, I mean, how did that look like? Because you’ve been doing this now for, you know, for decades.

Tony Falkenstein:
Well, they have a program, a forum where you get together with eight to ten people from the, from the chapter and you meet once a month and everything is confidential. So whether it’s business, personal or family. And so very quickly you develop absolute trust within that, within that group. And because they come from different businesses, they have different approaches. So if you’re in one industry group, everyone sort of has that industry. Same thinking. Here you’ve got someone running one business, another one totally different and says, hey, we did this. Ever thought of doing something like that.

Tony Falkenstein:
And it’s those ideas that are just flowing all the time and people feel, you know, feel they can be vulnerable and be quite open about what’s happening in their business and very helpful. You know, during COVID you know, some of them in travel businesses, for example, I mean, they, they, they just needed someone they could talk to and having those groups is really beneficial.

Paul Spain:
And I mean, I went along to one of the entrepreneurs Organization’s events a little while ago. Obviously you, you, you were one of the many entrepreneurs that was, was there to, to chat to. Are there any, you know, particular, you know, leaders that stand out that you’ve met in those groups and you know, that have maybe got a lot out of the group or have contributed a lot?

Tony Falkenstein:
Well, you would have found, I mean there’s a, there’s a real buzz.

Paul Spain:
Yeah,

Tony Falkenstein:
they love being there, I think

Paul Spain:
because it’s often, yeah, it’s often talked about that, you know, when you’re leading a business that could be, could be a lonely, a lonely endeavour. So, you know, that’s, I guess one of the, you know, one of the great things is you’re getting together with other people that, you know, that understand what you’re deal dealing with.

Tony Falkenstein:
There are a lot of people that have sold their businesses and, and yeah, I mean they put it right down to where. What’s growing that business. I mean, I like just seeing some of those businesses there.

Paul Spain:
Yeah.

Tony Falkenstein:
When they start and to see them, see them grow. Others, you know, they, they don’t survive. But the ones that do survive are. Yeah, yeah, it’s great. Some great stories there.

Paul Spain:
Yeah. And, and you know, when you look at, you know, why, why the thing, you know, the things you’ve done have done well and when you look at, you know, others where you’ve obviously seen, you know, businesses come and go and some of them not survive. What would you say are the things that, that, that are kind of the, the traits of those that maybe, you know, survive versus those that, those that, that don’t in their, in their leaders?

Tony Falkenstein:
I think a lot of it is just cash, cash flow. So I’m very big, you know, make the statement profit as a matter of opinion. Cash as a matter of fact. And I want to see more cash in my bank at the end of the year than beginning of the year. So starting, starting with that. A lot of them, they don’t have the margin to, you know, I look at some businesses now and I think it won’t survive and it cannot survive. There’s one that you know, I called out to and. Cause I know, you know, it’s in sort of similar rental business.

Tony Falkenstein:
And I know he wasn’t interested in really talking to me. I thought that business, I just know it cannot survive. So I think some of the traits, not understanding that others, you know, I think it’s resilience is really a big factor. You know, getting through Covid was a big one for a lot of them. But I think when they’re thinking of, when they’re thinking of buying, selling, I mean, that’s always, you know, a lot of people have been through all that. I can’t think of anyone else who’s ever gone public from here.

Paul Spain:
Yeah, yeah. And I guess, you know, we’re in this time where there are a lot of startups that traditionally, you know, don’t make money for quite some, quite some time. Do you think that’s, that’s a, that’s a problem when, you know, businesses ultimately need to make money. But of course we’ve seen, you know, some great examples, you know, along the, along the way of, you know, businesses that might be 10, 20 years in, you know, in some cases we say, you know, Rocket Lab, you know, they’re, you know, stretching themselves, they’ve, you know, increased their, you know, their share price, you know, considerably, you know, Xero for, you know, for a long time we’re not a profitable company. You know, even Amazon were in that category. So there are, you know, there are these ones, but it tends to be a pretty small number where, you know, what they’re doing is, you know, is. I don’t even know how, you know, how you describe their opportunities. But with very big opportunities that, you know, a huge amount of investment gets put into and it’s clear to investors that long term they’re going to do well.

Paul Spain:
But you can’t do that with the typical business, can you? You need to be turning a profit pretty quick.

Tony Falkenstein:
Well, I know the tech sector think they invented recurring income, but we had in the rental business. So when you start, you’re buying a piece of capital and you’re not getting your money back. We went for six years before we made a profit because you’re investing it always into new product and watching that rental income. In our case, it was easier because the banks could see that. So I mean, we started with very little money, but the banks could see that if we put out a water cooler, over time it’s going to, they can see the automatic payments are going through. So over time that’s going to get repaid in fact, I think we got it down to before the first bank called up their money. It was only nine months they had to wait for and everything we had borrowed would have been repaid back. Now they didn’t quite understand that cash flow funding, while another bank that we went to who were now with the bnz, they understood it and so they’ve packed us ever since.

Tony Falkenstein:
So students coming out now all want to go. The first thing they do is go knocking on doors looking for money. And some of the, I sometimes think that some of the ideas just, they’re very hard to get off the ground and it’s a pity they waste that time. They’re very, very smart individuals and if they did something else, they could. In terms of getting a lot more money, they could. Or if they waited a bit and had a bit more money to put their own money in, they can, you know, they could earn high incomes.

Paul Spain:
So yeah, maybe you can just give us an overview of the Waitakere College School of Business scholarships.

Tony Falkenstein:
I think this time with the Waitakere College School of Business we’ve got the model, right? And so it’s one that I think that we can move into other schools. It’s not an expensive thing, but I think one of the things that Chris Saunders said, the initial headmaster principal of Anahunga High School, he said you have to, you have to really say, hey, that’s what we want to be. Now other schools might be, might be, you know, say they want to be. We want to have the best chefs or we want to do car maintenance, whatever. But if you want to be a business school, you need the sign out. You are a business school. And that’s what Waitakery did. They.

Tony Falkenstein:
We did some pre marketing, not overly successful. But in West Auckland we’re known, hey, if your kid. And I think next year they’re going to be overthrown by kids from West Auckland and say, hey, we want to go that way. Taqueri College, they’ve got a business school there. Having a space that is a business school, that’s important, right?

Paul Spain:
So they’ve got a dedicated, dedicated part

Tony Falkenstein:
on campus and then, and then just really saying, hey, you know, I suppose it’s like having your main product and saying that’s what we want to be. So we’ve launched, I mean we’ve got. See the tertiaries are very, very keen to help because if you learn French, you start about year nine, by the time you get to university, you know a bit of French. So they can start, they can take you from here and go to there. But with business, if you’ve come from a school where, you know, where your parents are not in business and they haven’t done anything at school, they’re starting from scratch. So that’s why they’ve had the University of Auckland Business School, AU Waikato Management School have all put in scholarships to take these students. So they know, hey, wow, these guys are going to, are going to have some nous when they come to school, come to university and they’re also going to be a lot more dedicated because they’re, they know, hey, it’s a struggle to go to university like a lot of them will. You know, one of the girls said to me from the, from the school says, I’m really going for that scholarship.

Tony Falkenstein:
There’s no way I’ll ever get to university if I don’t get that scholarship. So really important. And it’s a scholarship that is $8,000 a year. So it really covers everything. So they can or be able to get university without asking their family for more money.

Paul Spain:
So this is a three year scholarship. So they’ve got but basically $24,000 coming in over that first year.

Tony Falkenstein:
As long as they pass.

Paul Spain:
Yeah, three years. Yep, yep. So you gotta set that bar. Yeah, yeah, that’s great. And so how many scholarships are there available?

Tony Falkenstein:
There are five scholarships.

Paul Spain:
Yeah.

Tony Falkenstein:
So it’s gonna be interesting.

Paul Spain:
And how many you know, would be going through the business school At Waitakere

Tony Falkenstein:
College this year There are about 32 who are doing accounting, economics and business and there are about 80 all up doing business studies. Now to get one of these scholarships you can do it with just business studies because if you were doing a marketing degree, you don’t have to do accounting or economics. So say the whole 80 are going to come down to five scholarships if they want to do that, but they want to go into a trade or whatever. You just need those business skills. I spoke to a girl the other day who was a just had nothing in their degree was about business. They all have to run a little business. Same with doctors. I mean nothing in their degree about business.

Paul Spain:
Yeah, it’s fantastic to have that kicked off and operating and I think it’s definitely going to be a draw card for them. And it’s something that’s good for New Zealand.

Tony Falkenstein:
So it’s good to see government are encouraging financial literacy from year one to ten. You might have seen David Seymour has floated an idea of Year 11 students investing in businesses again to encourage financial literacy. The YES Program Young Entrepreneurs Program has just been Very successful. And so that’s really, really good program for people to get into.

Paul Spain:
Yeah, great. Before we finish up, wondering if you’ve got some tips for listeners, anyone listening in, something that they could put into action in how they operate from a leadership perspective or, you know, something that they can do in their business that, you know, that comes from your toolkit. Tony?

Tony Falkenstein:
Well, I suppose culture is everything and energy zappers don’t make good people. So I think, you know, just not having a hierarchy that people, that people should be able to venture if they’ve got a problem or if they think something’s not fair, they should be able to say it to somebody, but they shouldn’t talk to each other about such when they don’t know why. So we say to people, hey, listen, we’ll always tell you why we can’t tell you something. And often it’s because, hey, we’re still a public company. We can’t tell you something until we’ve told the public it’s. Yeah. So energy zappers are not allowed.

Paul Spain:
Yep, yep, yep. And so, you know, what, what, what does that tend to look like in practice? If you’ve got, you got an energy zapper within your organization, what’s they get zapped? How do you work through, you know, that, that with people. I think you said you, you know, last time that, you know, you like to create an environment where people are having fun and enjoying themselves. And if, you know, if they’re not having fun, you know, you encourage them. Look, if you’re not enjoying yourself here, then maybe this isn’t the right place to be. Is that part of the encouragement?

Tony Falkenstein:
I think there’s a question that your listeners can take on. Yeah, the best question ever is you sit them down and say, you’re not happy, are you? And then pause and either if they say, yeah, I’m really happy doing my job. Well, hey, you’re not showing it, saying you’re not happy. Well, hey, what is it? It’s something we can do or it’s something you have to do. One or the other. And so it’s a good question to just get something happening, something rolling on it because you just don’t want them sitting there and. Yeah. Mining to everybody else.

Paul Spain:
Yeah, yeah, yep. Okay, that’s good. Now, we were going to delve into the unlisted stock exchange. Yeah, tell us. I’d just like to hear a little bit more around going, you know, going, you know, from the NZX to unlisted stock exchange, usx. You know, what did that Actually practically look like. How much different is that for your shareholders to work with? And what does it mean for those who would like to buy shares or sell their shares?

Tony Falkenstein:
Yeah, I think it’s not a platform that brokers particularly like. It’s almost one they have to comply with and they have to buy and sell shares through. I mean, there are a lot of companies on there, Esprit and some of the wine companies are on there. So at the time we had to get 50% of the shareholders, excluding me, I wasn’t allowed to vote, that wanted to move from the NZX to the usx.

Paul Spain:
And USX is New Zealand based.

Tony Falkenstein:
New Zealand based, yeah, yeah. And the directors had to. Well, didn’t, in this case, did not make a recommendation, much to the chagrin of the shareholder association. But we went through the process and so it got past an annual meeting. We then almost the next day the current directors decided to resign and the new directors came in pretty quickly. So. So, and that was quite good because the older, there was nothing wrong with them, but they were much more public company compliant, very compliant people. While, you know, we’ve taken on someone who had, who had just sold their cosmetics business, which suited us.

Tony Falkenstein:
They were used to dealing with pharmacies and what have you, then a girl who’s like a futurist and very up to date with AI. So that was. That’s just beneficial for us on an operating level. Much more, a much more operating friendly basis. And because now we have less compliance, still have to do all the compliance. And I think if, you know, as we said, we may one day come back to the nzx, so we’ll be able to do it very easily. We comply with everything, but can be a lot more flexible. We still have an annual meeting.

Tony Falkenstein:
We advise shareholders what’s going on. But probably because brokers don’t really like dealing in it, there is not that much dealing in shares.

Paul Spain:
And in terms of your asset, when you have shares and it’s going through the unlisted stock exchange, I guess it’s not as liquid as being on traditional stock exchange. Over the years, you’ve seen a fair variance in terms of, I guess, your market cap. How does that look today? How much do you think about share price and market cap?

Tony Falkenstein:
Yeah, I think, well, first of all. So when we went from unlisted, first of all, we took anyone who had 5,000 shares or less, we bought them out or the company bought them out. So that brought us down from 650 to about 300. We then offered. I then Offered to. Or my family company offered to buy other shares up to a certain amount. So he got down to it. We’re now down to just over a hundred shareholders.

Tony Falkenstein:
So people could get out since then? I don’t know, there’s probably. There hasn’t been that many trades. Probably, I don’t know, probably two or three a month.

Paul Spain:
Right. Because you’ve got a much smaller group there as well.

Tony Falkenstein:
And so. Yeah, so the market cap to me wouldn’t worry me one way or the other because at the end of the day someone would value the company and would get us real value. So there is no real value, I suppose.

Paul Spain:
And so what would you imagine at some point in time someone’s gonna knock on the door and want to buy the business that just would go through a normal sort of valuation type process? Is that how you would see that at some point? Because you probably won’t want to run it forever, will you?

Tony Falkenstein:
Well, I don’t know about that, but I think the, I think both the water business and the supplement businesses are salable businesses internationally. The supplement business in particular. I mean international companies circling all the time. So I think that that could be sold very easily and I have no idea. And the water business, again, it’s a lovely recurring just cash flow business. It’s just keeps on generating cash now. Yeah. So.

Tony Falkenstein:
Because it hasn’t, you know. And there’s the great thing about the rental business. When you stop growing, you’re just putting out cash because you’re not buying a lot of, a lot of coolers.

Paul Spain:
Yeah.

Tony Falkenstein:
So they’re both, they’re both good businesses.

Paul Spain:
Yeah. And clearly you, you enjoy running them and.

Tony Falkenstein:
Yeah, and I, I enjoy running them. And people say when you’re going to retire. I say when I stop. Stop enjoying it.

Paul Spain:
Yeah, yeah, yeah.

Tony Falkenstein:
I don’t, I don’t know what I’d do if I. I mean I love playing tennis, but. Yeah, but I think you get sick of that after a while of playing every day.

Paul Spain:
That’s good. So I mean, where to from here? You enjoy the business? The business is going well.

Tony Falkenstein:
We’re always looking for opportunities. So we’d look for acquisitions in terms of the healthy living area from within. Yeah, we’re looking at doing, looking at some international things that we might do. Could do, but I suppose. Yeah, always looking for something, something interesting to do.

Paul Spain:
Yeah, yeah.

Tony Falkenstein:
People hate it when I come back from a holiday or something and I have this subject as I’ve been thinking. I hate that.

Paul Spain:
So you come back with lots of ideas. Is that yeah, that’s what happens when you get that time to unplug a bit.

Tony Falkenstein:
Yeah. I think you just come back with again if you just go overseas just doing something different. Yeah, you just come back with different things that, you know, go around in my brain.

Paul Spain:
Is that important for you to take that thinking time out?

Tony Falkenstein:
It really is, but I do it like just even going on a trip to Australia or something. Just getting out of the day to day for a few, you know, for a few weeks or a few days is always good. There’s always something I’m very, very big on utilizing my subconscious overnight. So, you know, I’m something. Yeah. So I sleep well by never taking something to sleep but knowing that it’s going to be there and next morning I’m able to make a better judgment or a better decision or I’ve thought up a new idea or a new way of doing something or whatever.

Paul Spain:
And do you find that when you wake up in the morning you’ve got ideas immediately that you have to write down or do they come to you over, in, over the course of the day?

Tony Falkenstein:
No, I have a very stringent. I have. The golden hour is after I get up where nobody’s up except the cat and the dog. And once I’ve fed them, I go onto my laptop and either I’m answering emails, I’ve just got a total fresh mind. I’m a morning person, a total fresh mind. And yeah, I’m doing things, sending out messages to managers or something. I then do some exercise, I’m do some stretching and then have a pretty. I’m not big on fasting.

Tony Falkenstein:
I have a reasonable. I have a breakfast, you know, muesli breakfast and then normally some bit of taste, et cetera, but that’s my morning routine. And then probably take the dog out for a walk and try and get to work by 9 o’. Clock.

Paul Spain:
Yeah, yeah. Oh, that’s fascinating. Yeah. I always find it interesting to understand how, you know, what the habits are.

Tony Falkenstein:
Sometimes I will wake up in the middle of the night and something, you know, three o’ clock in the morning and something will have gone off, off in my brain.

Paul Spain:
Yes.

Tony Falkenstein:
And we have a product called Lester’s Nightcap, which is, which is really just a natural, natural product, soothing product and it works, it just takes. Takes that off me and I go back to sleep again if I have to. I’ll go and get that.

Paul Spain:
Yeah, that’s very good. And how do you track and collate your ideas? If you have a lot of ideas, how do you get from you know, those ideas to working out what are the things that you’re going to, you’re going to really take action on.

Tony Falkenstein:
Yeah, I mean we have a good team of people just inside the senior guys who will poo poo it or whatever. I’m also, to some degree, I am patient. So I’ve got a concept now that we’re working on and I think it probably won’t happen for another year, but I’m quite patient on getting, getting these buttons right and working out how we’re going to do it. And yeah, I think that we’re, you know, I mean I am an optimist, there’s no doubt about that, but I think also a realistic optimist.

Paul Spain:
Good, good. And now a little bit of a pivot. Keen to hear your thoughts on where AI fits in.

Tony Falkenstein:
That just blows my mind. I mean that’s the most exciting thing. I get really excited by it and I’m just a baby in the whole thing, but suddenly technology’s caught up with me and so, yeah, I mean I can just take all these numbers that the guys give me and just get it down to what I want. And then just within the company, I mean there are just so many things that first of all, an interesting, I suppose, journey in that our senior executive leadership teams, the four of us, we’ve sort of been learning off each other as we go and I mean just every month there’s something and there’s tried this and tried that, so we’ve learned, which has helped our own personal efficiency and then we’re other people to the next layer down. We’ve now paid for a co pilot license for all of them and we’re encouraging at every meeting that hey, what have you done? What have you used? How have you used it? And so we’re learning a bit off each other all the time as we go along. I mean it’s just the agents, they come along and agents and oh, it’s just phenomenal. I mean I told you about this Hades. I mean, I mean they’re, they’re just so far advanced.

Tony Falkenstein:
But you know, there’s a guy that’s doing all this data. He’s got, he’s got an agent, he’s got six sub agents which are like having six, eight PhDs working for him.

Paul Spain:
Yeah, yeah.

Tony Falkenstein:
And he just gives the good instructions and off they go and work and. Yeah, yeah, I mean it’s just, it’s just phenomenally the opportunities and the dangers, I suppose.

Paul Spain:
Yeah, yep. There’s definitely two, two sides, I think always to, to the possibility of technological tools.

Tony Falkenstein:
Yeah, but the exciting, yeah, I’m on the exciting bit at the moment. Exciting ride.

Paul Spain:
Yeah, fantastic. And how important has the role of, or has technology enablement been within, within your business over the years?

Tony Falkenstein:
Yeah, I mean, we’re just putting in a new ERP system probably. It wouldn’t surprise me if within a year you’d say, why don’t we do that? We could have got AI to do all. Just taking our legacy system and do all that. But anyway, we’re doing that. I think AI is just, you know, people said, you know, when the Internet came in, that was fantastic and that would, people would lose jobs, et cetera. AI is a just holder that’s just so far ahead of that. It’s happening so fast and just, it’s just mind boggling. But it’s an exciting ride.

Paul Spain:
Yeah, yeah. Do you have concerns around what impact it might have on employment?

Tony Falkenstein:
Yeah, I really do. If we lose a whole lot of, if we go even a 10% of the workforce out that one, it could cause civil unrest. But suddenly you’re losing a lot of customers too. So you might be all so efficient now as a company, but now you’ve got no customers to sell to.

Paul Spain:
Yeah.

Tony Falkenstein:
And so that’s the dilemma. And I don’t know how that’s going to, how that’s going to end out in the end.

Paul Spain:
Well, thank you so much, Tony Falkenstein. It’s been a real privilege to have you back on the show and lots of insights covered and you know, we’ve delved into a bunch more that we didn’t on the last one. Of course, I’m sure some listeners will be, we’ll be going back to Listen to the 2022 interview with you, but it’s been an absolute privilege to talk with you again. Thank you so much.

Tony Falkenstein:
No, it’s been a privilege to be here again.

Paul Spain:
Thank you, Tony. All the best.

Tony Falkenstein:
Okay, cheers, Paul.

Paul Spain:
Well, I trust you enjoyed hearing from Tony Falkenstein. New Zealand Business Podcast has been brought to you by One New Zealand alongside Gorrilla Technology, tech enablement and cybersecurity risk reduction experts and Outrun Global – Remote staffing to help your local teams work smarter, not harder. Be sure to listen in to our other episodes featuring many of New Zealand’s most successful leaders and founders including Brooke Roberts of Sharesies Sir Peter Beck of Rocket Lab, Cecilia and James Robinson Robert of My Food Bag Intend, Sir Stephen Tyndall, Sir Graham Henry and many more. And be sure to share this episode with a friend or colleague who you think will benefit from it. This morning I was asked to answer some questions for a radio news bulletin about a cyber related incident in a smaller Kiwi organisation whose reputation was was being impacted in real time. My question to you is, have you had a cyber audit in the last 12 months and do you now have in place the right processes to ensure your team are passing all technology selection and configuration decisions through an appropriate cyber risk review process? If you’re not fully confident, get in touch with Gorilla Technology today. Well, thanks for listening in. This is Paul Spain signing out for another episode.

Paul Spain:
I’ll catch you on the next one. See you then.

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Jamie Beaton: Co-founder and CEO of Crimson Education

Posted on 25 May 2026 in Featured, Podcast

Jamie Beaton: Co-founder and CEO of Crimson Education

Jamie Beaton CEO and Co-founder of Crimson Education, joins Host Paul Spain to share how Crimson has expanded over the past five years entering new markets internationally, including a highly successful return to India and a major leap forward in the United States. Along the way, Jamie shares what it’s really like building global teams, navigating acquisitions, learning from top-tier mentors like Julian Robertson and Sir John Key, and why a thirst for learning and relentless adaptation is at the heart of Crimson’s journey. Whether you’re a founder, leader, or simply curious about what it takes to build a unicorn in the education space, you won’t want to miss this insightful and inspiring episode.

Special thanks to our show partners One New Zealand and Gorilla Technology.

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Paul Spain – CEO, Business & Tech Commentator, Futurist

You can keep current with our latest NZ Business Podcast updates via Twitter @NZ_Business, the NZ Business Podcast website.

 

Episode Transcript (computer-generated)

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Paul Spain:
I’m Paul Spain, futurist and chief executive at Gorilla Technology. I love seeing individuals and their organisations thrive. The New Zealand Business Podcast is all about this through helping you learn from our most tenacious and successful leaders. In this episode, we’re catching up with New Zealand’s youngest person to build a unicorn business that is one valued at a billion dollars plus. Yes, it’s Jamie Beaton, co founder and chief executive of Crimson Education. This is an in depth conversation that goes behind the scenes and into Crimson successes and challenges on their journey of explosive growth and global expansion across the last five years and delves into the strategies driving their transformation from a New Zealand startup to a global education powerhouse. The New Zealand Business Podcast is brought to you by one New Zealand and Gorilla Technology. Before we jump into the interview, if you work for a mid size or smaller organisation, I have a quick question.

Paul Spain:
Are you completely confident your company has its house in order from a cybersecurity perspective? If you’re not quite sure, then get in touch with Gorilla Technology today for an initial advisory session.

Paul Spain:
Jamie Beaton, great to have you back on the podcast. How are you doing?

Jamie Beaton:
Absolutely fantastic. Great to be back.

Paul Spain:
Yeah, really keen to catch up. It’s been about just over five years since we last chatted. There’s been a huge amount going on in that period. I think when we spoke last time, you had a full time team of around 400 people. You mentioned that’s grown to 1100 now.

Jamie Beaton:
That’s right. It’s been a massive period of growth and I think back when we spoke, we hadn’t even launched our Crimson Global Academy at our online school. And building out all the schooling parts of Crimson in the last several years has been really exciting. But yeah, now the team is really global and the US is actually our biggest base of full time staff now.

Paul Spain:
Right. So walk us through some of those areas of sort of growth and revenue. It’ll help give listeners a bit of a bit of a picture on just how fast things have been moving.

Jamie Beaton:
Absolutely. So of course our Adventure began in core college admissions, initially helping Kiwis going to the us. Then the next part of our strategy was to help more and more foreign kids coming into the US and uk. So we opened up in places like Russia, the uk, the Middle East, South Africa, Taiwan. And we pursued this strategy of focusing on places where there wasn’t much information about the college admissions process. So we began there. Then as our products evolved, around 2017, 2018, we then went into more competitive markets like China, Korea, India, and then about eight years ago, we entered into the US market. Crimson built this really high performance training process for getting students into these schools, across mentorship, online delivery, all this content.

Jamie Beaton:
So we began first Boots on the Ground in San Francisco and California. And then a major area of growth for us has been really building the nation’s leading brand in America for college counseling, bigger scale. We also acquired the third biggest player as well, called Collegewise, which is a slightly different brand proposition to Crimson. And Crimson’s focused on how do we take a student and really maximize their performance. College wise is very focused on applying to a broad range of US 100 schools and actually removing stress and pressure from the process. So that’s really been a key evolution, the growth of our college missions. And then we’ve also launched this fully accredited online high school. Crimson Global Academy now has nearly 3,000 students.

Jamie Beaton:
And our recent online charter school, Aotearoa Infinite Academy, and even our first physical school here in New Zealand, the Age School or the Academy for Gifted Education. So a lot of other different things happening to Revision Village or our Concorde Visa unit, but I would really characterise the last five years as moving beyond our core to a whole variety of new adjacencies, new bets, and it’s been really fun.

Paul Spain:
Right? And in terms of revenue growth, what’s that look like, say, the last four years?

Jamie Beaton:
So in the last financial year, we exceeded 300 million New Zealand dollars in bookings. And, you know, that’s up about four times over the last four years. So. So we’ve actually managed to sustain really rapid growth over the last period of time. Last year, for example, our North American operations grew 150% year over year. So that was a really big breakout year. And that actually took America to being Crimson’s largest market, which is exciting because it’s also probably the deepest market alongside perhaps China and India, as far as spend and investment in education services.

Paul Spain:
Right. Now, last time we spoke, India was. You’d kind of figured out India probably wasn’t a useful market for you at that Point. Is that still the case, or has that changed?

Jamie Beaton:
It’s actually funny. So back when we spoke, we’d gone into India, and it was very difficult. It was almost like a needle in the haystack, because while there’s more than a billion people, the share of families that are excited to send their kids abroad to the US for undergrad and pay for that process is fairly low. At that time, we’re talking about less than 50,000 people out of a country of a billion. What’s happened in the last six years is India’s gone through a pretty massive economic growth wave, have seen a lot of growth and willingness to spend and also desire to go to some of these different countries for education. And so Crimson actually relaunched in India about four. About. Probably just after I spoke Jack, about five years ago, led by a talented guy called Kunal, who used to run the College Board, which administers the SAT in India.

Jamie Beaton:
So he joined our team, and we’ve been able to now make India a top six global market for Crimson, one of our fastest growing markets, too. And that’s an interesting example of how quickly some of these big markets can shift. India still has a lot of unique dynamics where only a small portion of the country can afford to pay for, you know, US College tuition, but there’s also been a huge growth in financial aid, and so more of those talented applicants from rural parts of the country can apply.

Paul Spain:
You know, you’ve shared in the past around, you know, chance meetings with people, and, you know, new information comes in and you make a quick change and you go for it. How did that play out in India from, you know, us chatting and just like, oh, yeah, India. You know, that’s probably not, you know, it doesn’t make sense for us at the moment. And now it’s one of your big markets.

Jamie Beaton:
Yeah, it’s a classic example of this iteration process where I first hired a fantastic guy, but he was an Indian American from Michigan, and I naively thought, okay, he’s got a lot of cultural connectivity back to India. A lot of his relatives are in India. So he and I thought we’d be able to figure it out. When he got on the ground in India, we quickly realized that actually that local connectivity is so critical. Knowing how to get into the schools, knowing how to find the different parent communities and building that network out. So, you know, we tried. You know, we just weren’t getting that product cut through, and so we got out of there. I think what changed is a couple of things.

Jamie Beaton:
First of all, the market got more savvy when it came to college admissions, and there was more a willingness to pay for a high quality service. But also the right leader came along. We found someone who had spent the last 10 years of their career leading a college board and also Coursera in India. And so he had taken a foreign company into India successfully. We thought he was, you know, good local knowledge and he had a pretty clear game plan. And he actually sought us out and said, hey, I want to expand Crimson to India. So actually we had a bit of an exec team discussion about this, and given we’d all burnt our fingers off in India the last time, there wasn’t much appetite for it. But, you know, a couple of us said, hey, let’s do it.

Jamie Beaton:
And you know, we sent in our man Kunal, and we’ve been able to build now a great practice. The interesting thing about many of these markets, not just in Crimson, but in general, is that they can evolve in three or four years quite dramatically. And your go to market strategies, you know, with one team, it can be a total disaster, and another team with different approach can be very successful, which is why entrepreneurship is messy and fun.

Paul Spain:
That’s interesting, you know, that you were approached on, you know, on that occasion. Have you had many of those situations arise where, you know, great, great talent has come knocking, knocking on your door and you, you weren’t, you know, maybe aware of the. The individual or the opportunity?

Jamie Beaton:
Totally. I mean, I’ll tell you a funny one. I was actually visiting a campus called Yale NUS in Singapore, and I was meeting a Kiwi guy that I knew in high school called Andy Chen. This is back when I was 19. And I was in this cafeteria with him and we were talking about Crimson and what he was up to, and he looked across the room and he said, hey, that guy over there, Andrew, he’s actually one of the best in entrepreneurship I’ve come across. He loves computer science. You go chat with him. So I went and had a chat with him and turns out Andrew was half Russian, half American.

Jamie Beaton:
And we were thinking about different markets and then he began to ask, well, what do you think about Russia? And he described some of the dynamics in Russia at the time. And I thought actually this could be very, very compelling. And so Andrew took a gap year from Yale and us went in Russia and began building the market out. And actually Russia, for a part of Crimson’s early days, was our fourth biggest market. And then Andrew, a super talented guy, he ended up becoming our chief revenue officer and he built Crimson through an enormous Wave of growth. You know, really interesting. And you know, we found him when he was kind of 19 in college and seeing that growth trajectory is very inspiring. To answer your question, we’ve had a lot of opportunities for folks come to us.

Jamie Beaton:
We’re always also reaching out, finding new people, you know, thinking of new people that could fit in a certain area. Great example is Kevin park, you know, legendary Kiwi entrepreneur. He helped us take Crimson Global and he also helped us launch Crimson Global Academy. And then we thought actually Concord Visa in the immigration space could be really interesting for him as well. And he’s just hit the ground running and that business has grown really well.

Paul Spain:
Great. Tell us about some of these new things. Maybe start with over this period that sort of stands out.

Jamie Beaton:
We acquired a business called Revision Village which is the leading provider of International baccalaureate study resources. So if you’re a student at Kristin or you’re a student, for example, St Cuthbert’s and you want to boost your score on the ib, our platform is the most popular for helping you study for those exams. We initially bought this when it was just a math product and, and then we expanded it to all the key IB subjects. And then the leader is called Tim Vaughan. Tim used to be on the exec team and one of the founding hires at Education Perfect, which sold to KKR and then he joined as CEO for Revision Village. Now over the last several years, I think two and a half, we’ve taken that from being in zero schools to more than 430 of key IB schools around the world. And so we love Revision Village because it’s a really good bang for buck for the students. Revision Village has been a major new part of Crimson and Our first major B2B software division of the business.

Paul Spain:
Yeah, great. So maybe you can walk us through a little bit of the sort of history on the acquisition front, because that’s not the only acquisition that you’ve done. This seems to have been actually a really important part of the journey so far.

Jamie Beaton:
Totally. Now if I was to characterise my acquisition strategy at this point, it’s really a learning strategy. What we do is we find new verticals that we don’t know enough about ourselves. Take Revision Village. That it was a self serving IB platform that was being used by students in the IB at a certain price point that was quite different to Crimson. And we had a theory that if we acquired the business, we’d learn enough about the space to be able to really expand and grow this thing. And so we generally like this kind of buy and build thesis where we find something that is compelling as a standalone. We’ve got a good strategy of how we grow that.

Jamie Beaton:
So that was the case with Revision Village. Another recent one would be College Wise, which is the the third biggest college Counselling firm in the U.S. we were able to take our Crimson technology platform, put that into the College Wise business, add a whole new range of enrichment products. So a family, for example, in Irvine, California, can benefit from our research training, different honours training competitions, academic tutoring, and really enhance their performance. So that’s another good example too. But we also like to do a lot of acquihires as well. We recently acquihired a team who runs Science Fair IO that they are America’s best training for science fair competition. So this will sound a bit funny, I guess, because we don’t really have such a big culture for this in New Zealand.

Jamie Beaton:
But in America, there are massive science fair competitions where tens of thousands of kids are competing through these projects. And it’s backed by companies like Jane Street, Top hedge funds, Regeneron, used to be Intel. And so students will often spend one or two years developing these projects. And so what we developed now with this acquihire is a training program to help students with enhancing their skills for the science fair competitions, which in turn helps them get into top universities. So that’s another example of a recent acquisition. So we are very flexible. We’re actually bidding on a really exciting thing right now, but I won’t jinx it. And then some other things in the pipeline, but definitely, as you said, it’s been a core part of the strategy.

Jamie Beaton:
But it’s worth noting that the huge majority of Crimson’s growth has come from the organic growth of our launched businesses. So although we do a lot of acquisitions, it doesn’t tend to be a huge share of our revenue relative to just the organic build out of Crimson Education’s core college missions business and numberworks.

Paul Spain:
That one’s, you know, quite some time back.

Jamie Beaton:
Yes.

Paul Spain:
Tell us a little bit about, you know, that, how that, how that’s gone and how that sort of fits into the overall picture.

Jamie Beaton:
Totally. Well, first of all, I’m eternally grateful to numberworks. I went along when I was, I think, three and a half with my numberworks coach, Lloyd. My mom would take me out there and when I finished my numberworks math in English, I’d go get a donut afterwards and some Papa Jacks. So that was good fun. And that was really one of the things that sparked my initial passion for math and English. So when the numberworks team was interested in a partner to help them grow the business. You know, we thought it’s a great opportunity for us.

Jamie Beaton:
And Numberworks caters to 5 to 14 year olds and it’s actually quite a world leader when it comes to using computer learning where students have typically one teacher supervising three or four students and, and the results are really fantastic and has been for now going on nearly 40 years. So we’ve seen Numberworks grow fantastic, really well under the Crimson banner and they’ve got great traction in Australia and they’ve got really a lot of popularity in places like Sydney and Melbourne and then it’s continued to do very well in New Zealand. So very proud of the numberworks team. They’ve also rebuilt the platform and you know, incorporated a whole variety of new tools and student experiences. So it’s been fantastic. And it’s been nearly 10 years under Crimson now.

Paul Spain:
Yeah, fantastic.

Paul Spain:
Now you’ve talked about the US market, you know, being, being your number one market now. That’s your biggest base. You know, walk us through that journey because, you know, it’s, it’s not necessarily a predictable journey when you, when you get into the US market. Right. And yeah, it can be pretty brutal too, 100%.

Jamie Beaton:
And you know, it’s funny, last year I was teaching a class at the University of Auckland with my co founder Feng Zhou and, and we studied many of New Zealand’s unicorn companies. And a recurring pattern in these companies, whether it be, you know, businesses like Halter or Rocket Lab or Pushpay, Xero et cetera, is they typically have had to get, you know, quite massive US traction. And I think the thing about the US market is when you crack into it, there’s high willingness to pay, it’s a big market and each state’s almost like its own country. So there’s a lot of depth there. But of course there requires a lot of, you know, nuance to adjust your go to market your product to make it work. In our case, the good thing about what we have already built before we entered America is we built this training engine to get a 14 year old who’s somewhat ambitious, make them really ambitious, help them find where they want to go in their future, build all their core skills and then get them into these top schools. And the same passion that a Singaporean mum has to get their child into Yale is very similar to an Upper east side mom trying to get their kid into Columbia. And so when we rolled into America, we focused on some of the key states that have, you know, pretty fantastic universities California’s got schools like Stanford and UC Berkeley.

Jamie Beaton:
You know, the east coast got all the Ivy League schools. And so we focused on a couple of key states and used our city launcher model, began to get traction on the ground. We did all kinds of things from live event, like for example, this summer I’m doing about 30 live events across North America. I just came from one on Friday in Silicon valley. There was 300 mums that turned up and dads and they were pumped to hear about how to get into Stanford. We just had about 6% of the world’s Stanford admits in the early round through Crimson. And so the families are really curious about that process. And as you can imagine, in Silicon Valley, families are very tech savvy.

Jamie Beaton:
So they like Crimson’s data driven technology, first approach to college admissions. And it really matches their intensity in terms of the ambitions they have for their child as well. So I think overall, when we first entered America, the US market wasn’t yet so focused on these really competitive colleges as a primary goal for a lot of these families. But it’s evolved now where that’s really nationwide and so we’re able to get early traction in New York and California. That really snowballed. And then we took that to more places like Chicago, Texas, etc. Florida. And we’ve really kept that growing.

Jamie Beaton:
And then we’re actually been quite fortunate to get some good, you know, marketing coverage in the US in places like the Wall Street Journal or Fox or, you know, CNBC and stuff. And that’s helped to build Crimson as sort of the national brand for college admissions. But it all began, you know, I think our first thing was a. We had an ice cream social with about 20 kids in Palo Alto, California. So you’ve got to start somewhere.

Paul Spain:
Yeah. Oh, that’s, that’s good. And how, how has your relationship sort of developed with the universities, them themselves?

Jamie Beaton:
Well, really good. I mean, I, first of all, I’ve kept studying at more of them, so I’ve been making my way around, you know, recently, I won’t say what university it was, but I received an email from one of my professors, or rather one of the deans, and I was a bit nervous because I had been traveling for Crimson and I missed a couple of classes and they wanted to meet me. And so I rolled into the office, slight butterflies, and I sat down. The dean looked at me and said, Jamie, I’m actually going to be leaving the university soon and I’d love to come work for Crimson if there’s any spots available. This Particular fellow wanted to move to Europe and do some more flexible work. And Crimson, of course, has a lot of remote work options for our college admissions counsellors. I thought that was pretty funny. But I guess, in short, what we’ve been able to do is build Crimson as a fantastic employer of choice for many of these graduates.

Jamie Beaton:
So whether it be at education schools like UPenn, all the way to Harvard undergrad, a lot of graduates are really excited to work for Crimson, both in college admissions roles, teaching roles, tutoring roles, some full time, some part time. And it’s a really good way for someone to convert their passion for academics into an earning stream and also a way to inspire students. So it’s definitely become very mainstream. We also hire a lot of former admissions officers that used to work in admissions that then joined Crimson and provide advice to Next Wave. And it’s quite impactful work because when you’re in the admissions office, you’re often declining people and accepting some. But when you’re working on the Crimson side, you’re actually making every student you interact with a stronger profile, a better outlook and helping them get more career direction. So it often often can feel quite fulfilling. So, yeah, that’s been very exciting and I think we’ve continued to build relationships with more and more institutions and it’s been key to our success.

Paul Spain:
Great. That’s good. Now, tell us about how you looked at Crimson and from the early days sort of through and where your inspirations were in terms of, you know, were you looking at other sort of specific entities that you might, you know, you might be competing with? Were you looking at Silicon Valley tech startups? Were you looking at, you know, New Zealand success stories? What were the directions you looked and where did you take the most inspiration from?

Jamie Beaton:
The big inspiration was the pain that I felt going through the College of Admissions process from New Zealand, which, where I was at a fantastic school with great teachers who were really excited to help me. But the process was simply so complicated. It took hundreds of hours and it took me on a very different path to many of my peers. And all the way through the process, I had no idea how it was going. I had this idea I wanted to get into these schools, but I didn’t know if I was going to get into one of them. So I applied to all these universities and only when I actually got the result and I got into all these different universities that I realized actually I’d kind of stumbled upon this approach that was quite effective and distinct. So I think initially it was this combination of Having a lot of voices around me saying, hey, you don’t need to do this. It’s not necessary.

Jamie Beaton:
This isn’t going to work. And then getting the positive feedback that actually, well, it did. And then seeing actually many of my smart peers who I did math Olympiad with or chemistry competitions with or whatever, who didn’t get into these schools, realizing, okay, there’s actually a bit of a problem here, like an information knowledge training problem. So that was like, I guess, the key catalyst. But as far as inspiration, when I began working at Tiger for the late Julian Robertson, I studied companies like New Oriental and Tele Education Group, which got up to 40 and $35 billion companies, respectively, on the US stock market. And seeing how they had shepherded more than a million students in China through different learning processes and built a valuable company, but also a really important training engine for students, that certainly was a kind of inspiration. So I actually didn’t look at many Western examples of these education companies. I looked at particularly China as a heavy inspiration.

Jamie Beaton:
And I sort of took the view that over time, the kind of competitive academic culture that existed in places like China will eventually diffuse around the world, both literally because Chinese families will move to places like New Zealand and Australia and the UK, but also because the world generally gets more competitive over time. And I thought that, you know, if I, if I built this, you know, training program that was aligned to what I would have loved in high school, that will be quite powerful over time. So that was one inspiration. I also looked at other companies like Teladoc, you know, online healthcare delivery. I looked at businesses like Rocket Internet in Germany, which were really notable for execution, looking at things that were working, cloning them, launching them across Europe and Africa, and then even across different investors that I admired too. So there are some of the different types of inspiration that I took. I also was very inspired by folks like Rod Drury, because when I was first beginning at the Icehouse in 2013, Xero had an office across the hall from us. And I heard they were this really exciting company.

Jamie Beaton:
And actually, when I was getting trained as a hedge fund analyst in New York, one of the mentors I had told me to go study zero stock. And so I thought, wow, this Kiwi company is doing so well that this New York hedge fund is now looking at it. So I think there are a couple of the different touch points that really inspired me. But certainly my approach as an entrepreneur is to study business obsessively, see what’s going on across many different industries and take different ideas, and hopefully that Helps me keep adapting our roadmap.

Paul Spain:
And walk us through your opportunity to learn from Julian Robinson. How did all that come together and what were the big lessons there?

Jamie Beaton:
Totally. So I first met Julian through interviewing for his Robertson Scholarship back when I was 18. And at the point, I knew a bit about investment banking. I’d read some books like what they teach at Harvard Business School. My knowledge is pretty low. And I was reading about him and his background. I read about hedge funds and this idea of investing and finding good companies and bad companies and this kind of thing. Now I went along to the interview process and I began speaking to him.

Jamie Beaton:
Fast forward about 12 months. I was at Harvard. I was interning for a hedge fund called Weiss Asset Management, and I was building Crimson. It was rapidly growing and I thought, okay, maybe I should reach out to him and check in and get some advice. So I sent him a cold email and I said, hey, you know, submaphia Robertson scholars using Crimson for sad tutoring. And I’d love to tell you a bit about the business I’m building and also I’m working in finance now. I’d love to get some wisdom from you. So he very kindly met with me in New York.

Jamie Beaton:
Now, the short meeting ended up running and he took a lot of fascination with our rapid growth at Crimson and this, I guess, growing interest I had in stock investing and also even just my family journey and a bit about kind of this multi generational adventure from my granddad moving to New Zealand through my mum, through to me and really took me under his wing. He hired me to work at Tiger and also he invested in Crimson in the seed round alongside his son, Alex Robertson. So throughout college, I, I was born in Crimson investing for Tiger and Julian was taking me all around the US, meeting different CEOs, learning the tips and tricks of a stock investor. And I think that foundational training really helped me see how do you build a good company? What do you look for in enduring businesses? Strong leaders. And actually I learned so much from him in terms of financial advice, but I actually learned a ton as well from general leadership, his principles, his integrity as a leader, and how he’d built this incredible community. The Tiger universe around him. And, you know, to this day, alongside my own family, has definitely been the most inspirational role model that I’ve ever had.

Paul Spain:
Wow. And when you think about that time, what do you think was, you know, was most, most impactful that you, that you walked away with in terms of lessons?

Jamie Beaton:
Everyone in life needs a mentor who believes in them more than they believe in themselves. And I remember these conversations with Julian where, you know, I was thinking about how I could grow Crimson, maybe New Zealand and Australia, and. And he was so confident that I could build it all around the world, build it in China, build it everywhere. He introduced me to investors that had seen great success in China as inspiration to me to dream bigger. And he had this resolute confidence that we’d be able to make it work. And I think during our darkest, most spicy times, where we were failing in India or we had high cash burn, we had trying experiments that weren’t working, he was just calm, confident, and kept backing us. And I think, you know, that really showed what the power of mentorship does, because ultimately, whenever you build any kind of venture, almost everyone is initially a doubter. Maybe they’re neutral, but they’re usually a doubter.

Jamie Beaton:
And they might not say it to your face, but they usually are. And then over time, you know, more and more folks kind of pile into the journey. And I think having someone who just stands by you from the beginning and believes is incredibly powerful. So I think about that all the time when it comes to our students who have these bold goals. I think about one of our students, Brendan, who went from Canberra, came through Crimson, got into Harvard. He’d recently sold his company to Amazon. We want to be that kind of mentor for our students, just like he was to me and our team.

Paul Spain:
Yeah, I guess Sir John Kere is someone who’s been important in your journey as well. Tell us a little bit about that.

Jamie Beaton:
I mean, John is, of course, a legendary Kiwi, and his journey of really thriving in New Zealand and then going to work in the US and the uk, having great success in Wall street and then impacting New Zealand, and in particular, his way was politics. Incredibly inspiring journey. And I think early on, going through high school, John’s story was one of, you know, this ambition and willingness to also impact the community, too. And I think as a Kiwi, you know, we of course, have a lot of folks, this tall, poppy culture, where aiming high is not always really encouraged. I think actually that culture has been changing, and even in the last 10 years, I think it’s dramatically changed in many parts of New Zealand. But I think I looked at John earlier as an example of this tall puppy who. I was proud of his achievements on the world stage, but also down to earth and chill as a Kiwi, and it certainly made me believe that maybe it was possible for me to go to the US too. I think now, in a Crimson context, his Experience working in some of the biggest boards in the world at companies like Palletta Networks has leveled up.

Jamie Beaton:
Our corporate governance has helped us usher in new parts of Crimson, like our charter schooling and online schooling. He’s helped me make some of Crimson’s most transformative hires. Famously, John was able to build a really fantastic core group of folks around him. I give them a lot of autonomy, responsibility with really high performance standards, but also give them the space to be able to lead folks like Steven Joyce and others. And so I think seeing this leadership style of focused goal orientation, but also betting on people and making them feel like they have the remit and the trust to go, certainly we’ve tried to take that lesson at Crimson. So definitely he’s been really a very holistic influence to myself, but also to Crimson as well. Now on our board, I guess that

Paul Spain:
other one you mentioned, Sandeep Jane.

Jamie Beaton:
Yeah, so this is a funny example, but I first actually met Sandeep through Crimson, I guess, you know, helping some folks in his family with their admissions process. And so we built this really special relationship as his kids got into Stanford. And also at the time, you know, he was growing Uber through this crazy phase of growth. I’ve always been very inspired by Uber and I took early inspiration from their city launcher model and how Crimson expanded from New Zealand and Australia to 20 plus markets with our growth operations team. So when I realized he was actually working at Uber in the senior role, you know, I began asking for all kinds of advice. That relationship built and built and built. Now he’s on our board and certainly Sundeep is really at the forefront of innovation. Moving from Uber, after he took it from about a, I think 60 to nearly 300 billion mark cap company, he then joined this company, Mercour, with a bunch of 22 year olds.

Jamie Beaton:
And that company now provides a lot of the data labeling and data training services for labs like OpenAI and Anthropics. And so, you know, Sundeep strikes me as maybe one of the smartest minds that I’ve come across in Silicon Valley. And certainly as we continue to lead Crimson through this AI era, very, very important.

Paul Spain:
So what would you say would be the biggest lesson that you’ve learned from Sundeep?

Jamie Beaton:
I think what Sundeep teaches is that even if you are in totally different industries, whether it be an AI lab or whether it be Crimson, whether it be a law firm, a, a lot of the time teams that can’t quantify success and just vaguely aim for goals and, you know, it’s kind of ambiguous, always underperform teams that have a clear North Star metric that you drive towards. And in his career, almost every team that doesn’t have that clear North Star metric basically struggles, underperforms. And almost every team that really cranks at an elite level, whether it be Google search or ride sharing, excellence at Uber or now data labeling, has those really effective North Star metrics. And I think as an entrepreneur, it’s easy to have a sense that, oh, we vaguely know what the goals are or we kind of know, but going beyond just like, you know, revenue or something to clear operational metrics that the whole team is aligned behind and truly is aligned from your, you know, base new recruit all the way to your exec is really critical. So I think that is a very simple concept, but actually one that few companies truly execute on. And I think that would be, you know, one great example. The second piece that I would say I’ve really learned from Sundeep would just be around what, what in the new AI era will be driven by human teachers versus AI and where that settles out. And those discussions, debates with them have really helped form my view for kind of what I’m betting on at Crimson.

Paul Spain:
And let’s talk about you. What really drives you? What drives you every day because you seem to be working, studying, you don’t seem to slow down at all. And I think we were chatting before we kicked off and you were saying, yep, things haven’t slowed down since we last talked.

Jamie Beaton:
I thought you speed up a little bit, to be honest.

Paul Spain:
You’ve been going at an insane pace. So what is it that drives you and what does that look like for you kind of day to day? How do you get some balance in there?

Jamie Beaton:
So at the core, I feel like I’m truly obsessed with learning. And that can be a new academic concept in healthcare policy. It can be a new scaling challenge in entrepreneurship in India. But I hate to be static and I think I like max challenge, max learning in all areas. So I think that’s really drawn me to many of these universities to keep discovering new fields, whether it be law or journalism, whatever. And then in the business context, it really inspires me to push into new divisions, new units, embrace new technology, and try to push ourselves to grow at faster rates and achieve more excellence. So I think for me, that desire to learn drives a lot of things because if you do things slowly, you often will get into quite a routine and rhythm. But I think it’s that agility to learn that is very inspiring for me.

Jamie Beaton:
Of course there are Many other things, like impact. But I think probably, if there was one thing, I like to put myself in an environment where the learning curve is very steep. And so that tends to be perhaps why at Crimson, we go into a lot of different new units and we’re always trying new countries, new approaches. Why I’m always studying at different university programs. And also the cast of characters that I’ve surrounded myself with in the US and in general are generally folks that, for example, are at the coal faces of different industries. I think one of my best buddies, a guy called apoorv who’s investing in ultimeter capital, you know, they’ve become one of the biggest investors in OpenAI and I just love chatting with them about all these different trends across different industries. Certainly back when I was doing stock investing at Tiger, I loved it because you’re studying many different industries, long, short, seeing which companies will be disrupted, which companies won’t. And so it’s just max learning and challenge.

Jamie Beaton:
So I think for me, that’s probably what drives me the most.

Paul Spain:
And how do you put it all together? Studying and running the business and, you know, having a personal life too.

Jamie Beaton:
Fortunately, in Crimson, I found this, you know, beautiful vehicle in which all my learning, curiosity basically helps. So every new program that I do at a great place like Columbia journalism school or something, there’s, you know, more. More learning, more knowledge, more insights to help me build Crimson. And then, you know, Crimson ultimately is about taking the passion that many of our team have for learning and inspiring tens of thousands of kids around the world to really do so in their own journey. And. And there are many young people today who aren’t inspired by learning. They go through high school, it’s quite dreary and not so exciting. And when I come across a student that has a little bit of that spark and we can kind of convert that into this burning passion for what comes next.

Jamie Beaton:
I think it’s really epic. And I think about, for example, a boy, Ty Renner. I was just actually catching up with him in the Joe’s Cafe at Columbia. He was the head boy of Wellington College. Super ambitious guy. We helped him get into Columbia. He won his full scholarship there. And I think he’s going to first perhaps do something like managed consulting, but.

Jamie Beaton:
But I think he’ll be able to do big things for New Zealand in the future. And playing a role in igniting that curiosity in others has always been really exciting. I definitely have a fun personal life. I probably like theme parks a bit too much, and I’ve built a Great community around me in New York and the U.S. but I always love spending time at home with my family back here in nz. So looking forward to getting a couple of quiet days with them on this trip.

Paul Spain:
Yeah.

Paul Spain:
Fantastic.

Paul Spain:
And how do you look at things like time management and, yeah, other aspects of the way that, you know, life kind of intersects, you know, what are some tips and tricks are you up at, you know, 4:00am you know, what are those things that, you know, are your everyday.

Jamie Beaton:
I am up at wacky hours, that’s for sure. And I think part of that is because of all the different time zones of Crimson, I tend to have pretty scheduled, structured days and I think that really helps to get through all the different types of, you know, key meetings that I need to have with various folks, get through all the various, like, you know, new projects that we’re working on. So I think generally, you know, a lot of structure in my working days, but I try to have a lot of fun adventures when I’m, for example, visiting a country like Japan for work, try to squeeze in a fun adventure as well. So I think from a time management standpoint, I think if you don’t really plan for things intensively, I’ll give you an example. We have these work off sites every three months. It’s very easy for a hectic, busy team to slip out of that cadence and, you know, maybe just do something online or whatever. But we find that when we have that consistency, the whole team’s more motivated, more charged up and it flows through the whole company. And so I think having that operating rhythm and cadence just by default is really, really effective.

Jamie Beaton:
And if you’ve got to practically go and schedule something or make yourself do it randomly, it’s a lot tougher than just this auto running process. So I’m always thinking about, you know, does this exec meeting need to be, you know, running every week or whatever, or, you know, what cadence do we need to run things? And I think adjusting the kind of operating rhythm of the business for each new phase is very important.

Paul Spain:
Now, often the best learnings come through the challenges and the hard parts of the journey. What stands out to you over these last five years of the things that have been tough and more challenging to deal with and any lessons that have fallen out from there.

Jamie Beaton:
So some of the most entertaining struggles. I say entertaining now after some reflection, but if you think about last May, Trump came out and said he was going to ban all, all Chinese kids from Harvard, he was going to ban all foreign kids from Harvard, he was going to freeze visa interviews to the US now, you know, at Crimson, about a third of our two thirds of our college admissions revenue is foreign kids coming to the U.S. so theoretically, that would be quite spicy. Now, I guess the interesting thing about the last couple of years is there’s actually been more geopolitical instability than ever before. We, for example, have a big team in the Middle east based in Dubai. What we’ve seen the last three, four years is probably unprecedented amounts of instability, you know, and I think as a leader, you’re of course, responding to not only, of course, looking after your team, but also this kind of evolving world. And I think probably for us at least, the core demand to go to the US and, like, go to these top universities is not driven by a love of Boston or something. It’s driven by the fact that there’s a lot of economic opportunity for, you know, folks in these places, at least in early phase of their career.

Jamie Beaton:
So despite a lot of these geopolitical shocks, the main themes of Crimson have remained very resilient. But, you know, for example, I never could have imagined when I began in Crimson that you’d have a US President trying to, like, nuke his own universities or, you know, kind of throw out this instability. And so I think I haven’t. I hadn’t had to adapt to geopolitical shocks before then. There’s also things. For example, China, they randomly woke up one day and they banned all domestic tutoring. And so companies like New Oriental that were worth 30 billion dropped by 95% within a matter of days. Now, that didn’t really affect us, fortunately, because we do international students, you know, heading abroad, but just being more aware that actually in business, no matter what you think is happening, almost anything you build, you know, can have some, you know, tail risk, basically, and then adapting for that, whether it be diversification, more geographies, just a more, I guess, strong intestinal fortitude within your team and culture.

Jamie Beaton:
These things are very important because in this environment, like, you truly can’t know all the unknowns.

Paul Spain:
And it seems like politics is something that you’re really interested in, you know. Tell us about your interest in politics and learning about politics.

Jamie Beaton:
Yeah, so I guess, firstly, on an academic note, I guess my interest probably began fairly early on in debating in high school in New Zealand, because a lot of the time you’re debating different policy areas. And I guess when I was doing my DPhil at Oxford, I was at the Blavatnik School of Government, which is all about how you take research, then apply it in government to drive impact. I think government’s interesting because you can have massive impact through policy changes, but it’s so painful sometimes to get anything done. And it’s such an entrenched bureaucracy that is. And ultimately politics is super consequential to the whole country’s life or the world. You know, one man sitting in, you know, Washington D.C. can, you know, globally spike oil prices with, you know, the push of a button. And so I think for me, you know, it’s very consequential to humanity.

Jamie Beaton:
If done well, it can create massive change and it relates to everything in business of course too. But ultimately, you know, it’s the governing body that the Western countries have chosen to, you know, push their countries forwards. And that inherently makes it really interesting.

Paul Spain:
So looking at New Zealand politics, what would you imagine a kind of a utopia or a sort of perfect version of New Zealand politics might look like?

Jamie Beaton:
Well, that’s a great question. I think at the core of New Zealand, there’s a bit of a struggle between two alternative visions for the country. One, it’s this hermit kingdom where foreigners can’t, you know, move here. We were locking ourselves off from, you know, trade where we’re happy to sort of just compete locally. We don’t want Kiwis to move abroad and we just look very inward. And the second is really a globally open, competitive New Zealand that encourages people from around the world to be here, is proud of Kiwis to go abroad and shine abroad and come back. So I think as a country, New Zealand, we kind of have to decide do we want to be a country for local born Kiwis that is pretty inward facing and we’re kind of content with the economic consequence of that, or do we want to have a bigger vision for our country on the world stage? And so I think we’re kind of wrestling with that right now. I think if New Zealand can decide, and I personally think it should be the more open version of New Zealand that’s ambitious on the world stage and lock into that vision.

Jamie Beaton:
It provides at least an overarching framework everyone can get behind and then you don’t have as much, you know, fundamental policy disagreement.

Paul Spain:
From a business perspective, what would be some advice that you would, you might share with our listeners in terms of, you know, something that’s, you know, been really key for you and your success.

Jamie Beaton:
I think almost any ambitious Kiwi company has to export and has to go offshore. For me, within the first 18 months, we began selling into Australia and then going offshore and New Zealand’s a fantastic HQ location. Even today, our headquarters is in New Zealand and we’re really proud of that. We’ve got many of our key executives here, but we’ve been able to take that and compete in China and in India and in America and beat the local guys and build this global company. So I think as a Kiwi businessman or a Kiwi entrepreneur, don’t be afraid to tackle Australia, don’t be afraid to look into Southeast Asia. And, you know, you’ve got to get out there to win those markets. You know, we only were able to crack all these markets by flying out there, building teams on the ground, challenging the status quo. And I think, you know, we’re well positioned to do that.

Jamie Beaton:
New Zealand’s a great place where there’s, you know, almost no corruption. It’s easy to register companies, it’s easy to hire, there’s great talent here locally, so it’s a great hub. But because of the size of the country, we’ve got to export, compete and win on the world stage. So I think if you’ve been, you know, building a great Kiwi company for five or six years and you haven’t yet figured out a foreign market to attack, you know, maybe think about that

Paul Spain:
and looking at our tech sector, what are your thoughts on things that we should be aware of going forward to help us do better?

Jamie Beaton:
So one of the things that I really think we have to do is dramatically level up our education system, particularly our math education. You need to view math excellence as almost something of national security importance, because in the AI era, this is one of the key skills that actually lets you build these transformative companies. Think about, for example, you know, a place like, you know, Singapore or, you know, Denmark. I think about, for example, the maker of Ozempic, that one company is, is almost as big as the whole GDP of the country. And so if we can, for example, build more of these transformative technology companies that, you know, aren’t just solving a small problem, but actually can compete as one of the mainstream, you know, global winners that can really transform our economy. And you see with, you know, Ireland, only a couple of big tech companies based there, like Stripe, have made a big difference to their economy, their GDP per capita. And I think, you know, that’s probably a good way, good way forwards.

Paul Spain:
Was there anything else that you’d like to add?

Jamie Beaton:
No, that’s fantastic. Very spicy. I appreciated it. Really interesting questions and you’ve challenged me to make sure the next five years are more interesting than the last.

Paul Spain:
Look forward to it. Yeah. Great. Thank you. Thank you, Jamie.

Jamie Beaton:
Cheers.

Paul Spain:
Much appreciated.

Paul Spain:
Well, I hope you really enjoyed hearing from Jamie Beaton, who founder and chief executive at Crimson Education. And if you want to learn more about Jamie and the early years of Crimson Education, then check out our previous New Zealand business podcast interview with him. And of course, we also have a recent New Zealand tech podcast interview with Jamie. The New Zealand Business podcast has been brought to you by One New Zealand and Gorilla Technology. Be sure to listen in to our other episodes featuring many of New Zealand’s most incredible leaders, the likes of Brooke Roberts from Sharesies, Sir Peter Beck of Rocket Lab, Cecilia Robinson from MyFoodbag, Intend, Sir Stephen Tyndall and many more. And be sure to share this episode with a friend or colleague who you think will benefit from it. Final question, if you’re working at a mid size or smaller organisation, are you completely confident your organisation has its house in order from a cybersecurity and data privacy perspective? If you’re not so sure, then get in touch with Gorilla Technology for an initial advisory session. Well, thanks for listening in.

Paul Spain:
This is Paul Spain signing out. I’ll catch you again on the next episode.

Paul Spain:
The New Zealand Business podcast brought to you by Gorilla Technology, your strategic and proactive IT partner.

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Phil Thomson: Auror (CEO and Co-Founder)

Posted on 8 May 2026 in Featured, Podcast

Phil Thomson: Auror (CEO and Co-Founder)

Paul Spain is joined by Phil Thomson, Co-founder and CEO of Auror, to explore his journey from a career in law to building one of New Zealand’s standout global tech success stories.
Phil shares the early influences that sparked his entrepreneurial drive, the key decisions that shaped his path, and the realities of scaling a software company from New Zealand into major markets including Australia, US and UK. Phil offers candid insights into startup culture, global expansion, and the discipline and resilience required to grow a high-impact business.
If you’re interested in ambitious thinking, scaling globally from New Zealand, and the personal journey behind entrepreneurship, this is an episode you won’t want to miss.

Special thanks to our show partners One New Zealand and Gorilla Technology.

Listen to the Podcast Here:

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Paul Spain – CEO, Business & Tech Commentator, Futurist

You can keep current with our latest NZ Business Podcast updates via Twitter @NZ_Business, the NZ Business Podcast website.

Episode Transcript (computer-generated)

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Paul Spain:
I’m Paul Spain, futurist and chief executive at Gorilla Technology. I love seeing individuals and their organisations thrive. This is what the New Zealand Podcast is all about, helping you learn from other tenacious, effective and innovative leaders. On this episode, I’m joined by Phil Thomson, co founder and chief executive of Auror we’re, which is one of New Zealand’s standout tech success stories. With their work tackling retail crime at scale, we delve into Phil’s backstory through to building Auror from nothing to a half billion dollar global technology firm that supports thousands of law enforcement agencies and minimises crimes for the largest retailers in the world. New Zealand Business Podcast proudly brought to you by One New Zealand and Gorilla Technology. Before we jump into the interview, if you work in a mid size or smaller organisation, I have a quick question. Are you sure your company has its house in order from a cyber security perspective? If you’re not fully confident, get in touch with Gorilla Technology today for an advisory session.Paul Spain:
Welcome along to the New Zealand Business Podcast. Phil Thomson, great to have you on the show. Thanks.Phil Thomson:
Thanks for having me.Paul Spain:
I always like to sort of start with a bit of the, you know, the early stories, so maybe, you know, tell us where you were born and where you grew up.Phil Thomson:
Yeah, born in Wellington, born and raised, you know, pretty, pretty normal upbringing really. You know, got an older brother, younger sister. From an early age there was interest in business there. And partly, I think it must be like 11 getting my first job and dad had me out of his business sweeping the floors of the factory where he worked. And from then it was always just looking at different opportunities, whether it was a garage sale all the way through to every holiday, figuring out where I could work to make a bit of money. And from there I think that’s where the love of business caught on.Paul Spain:
Fantastic.Phil Thomson:
Ever since then, just been thinking about how do you create a company? It’s sort of taken a little while to get there through university, but it’s been interesting sort of reflecting on that over the last couple of years.Paul Spain:
Yeah. And when you look back at those times growing up, were you having business type conversations, you know, around the meal table or, you know, what were the things there that you think kind of pushed that, or was it just how you were wired?Phil Thomson:
I think partly how I was wired. I think we always had good conversation, you know, at the dinner table, just around what was going on in the world. I think there was never a strong push into business itself. But, you know, I think when I was just before I left to go to university, I think dad went out on his own as a consultant, started his own business that way as well. So I think it sort of just got ingrained in me almost through osmosis.

Paul Spain:
Yeah. Great. Now tell us about going to university and, you know, what you picked to study and how that came about.

Phil Thomson:
Yeah, I think it was always a bit of a natural progression of, you know, you go from school to university. I didn’t quite know what I wanted to do, but in the last two years at high school, I did a business studies course and I was actually having a look through some notes there out the other week that I got sent up from my parents and I’m actually first in business studies in my last year. So I feel like that was a little bit of a premonition of what was to come. But yeah, I didn’t have any real idea of what I wanted to do when I, when I was older back then. And one of the, one of the segments we did as part of business studies was on law. And my teacher at the time, Mr. Ballantyne was explaining how it’s really, you know, a really core part of what you need to do to run a business is actually understanding, you know, the legal side of things as well. So post school I went straight on to Otago University.

Phil Thomson:
I wrote down, I’ll do, I’ll still do law at university. And then psychology was the other option I chose because, you know, what’s better than understanding the human mind as well. So that was sort of me going into university probably three, three and a half years into university. Everyone else was busy filling out job applications for some of clerkships and I didn’t quite know what everyone else was doing and so I sort of told that’s what you do once you get a law degree. So filled out an application, got one interview and one job offer and sort of found my way into the law. But it was never really a thing that I set out to do other than the fact that I thought it was a good step on the way to business.

Paul Spain:
And where were you studying?

Phil Thomson:
Down in Otago. So yeah, left home when I was 17, out to see the world and followed in mum’s footsteps down to Otago and five incredible years actually. Met a lot of really interesting people from across the country. Many friends I still have today. We’re born back then, you know, 20 plus years ago now. And yeah, it’s an incredible environment to grow up, you know, personally, you know, you’ve got to figure out who you are in the world as part of that. And then yeah, post Otago decided that wasn’t going to go back to Wellington and wanted to sort of see more and got the job offer up in Auckland so made the move up here.

Paul Spain:
Yeah, yeah. So what did that first work look like, you know, for you?

Phil Thomson:
Yeah, so first job was as a summer clerk at a law firm and then that transitioned into a full time job after fifth year at university and I got into the, initially the commercial side and then focused on IP law. So intellectual property, copyright, trademarks, privacy. And that was super interesting for me because it was less about the law and more about the creativity. You know, how do you help a business understand the value of their brand marks, what intellectual property that they’ve got and how do you not only value that but then how do you protect that as well? And so normally you do two rotations and after the first sort of three months I said no, I think this is for me and to convince the partners then it says to keep me on rather than move on to another part of the law firm and end up spending four and a bit years there. But one of probably the best parts of that team, other than the culture which was actually great through there was, was we had a lot of people leave on the OE and so that middle, you know, middle part of a team. And so in my first and second year I was doing jobs that probably you wouldn’t normally get your hands on because that’s when sort of the, you know, three to six year type lawyers would do that. But we didn’t have that. So suddenly, you know, it was thrust upon me to spend a lot of late nights figuring out learning.

Phil Thomson:
But it was an incredible sort of ride just to, you know, probably what I learned in those first couple of years was more they would have done in 10 years elsewhere.

Paul Spain:
Wow. And how intense was that? If you’re being given work that’s normally given to people with a lot more experience, how did you keep up with

Phil Thomson:
that, yeah, I think a lot of it was just around at the time. It was almost expected probably for working at a law firm. It can be long hours and hard work, and so sort of most days eight to eight, you know, if not longer. And. But again, I just found the more that you said yes to things, the more opportunities that you got and then you figure out how to do it. And, you know, at one point in time, one of the partners said, hey, I’m writing a book on. On social media. Because back at the time, it was sort of still a fairly new thing.

Paul Spain:
Yeah.

Phil Thomson:
And, you know, we’d love to write a chapter on copyright law. Can you help me out? And so, you know, it’s been, you know, weeks on end, just working very late nights to figure out what was going on in the rest of the world in this space. And even at the time I remember that I wrote down there was 500 million users on Facebook, but they couldn’t print that because every other week it was changing as well. So, yeah, I just think you just take the opportunities that were in front of me and always just figure out how do you fit that in around what you’re doing?

Paul Spain:
And what did you learn about running an organisation in those years? Because obviously you were working really, really hard. You must have been enjoying yourself and growing and learning to have stayed there and not jumped off in another direction or decided to go overseas like others

Phil Thomson:
had probably started a little bit before then, obviously with growing up and doing a lot of holiday jobs. And again, one of my most common jobs while at university, but when I was back home for the holidays was on the back of a delivery truck. And so delivering food and meal prep to bars and cafes right across Wellington. And so that was early starts and just hard work. But then at last year of university, I ended up running the law student society there. And the thing that taught me was actually, how do you encourage a team that you didn’t choose yourself? Because everyone was sort of voted on, but everyone was volunteers, so you couldn’t hire and fire or pay people more or less. You had to figure out how do you actually bring and create a culture of team unity, mission to do that. And so that was my first real taste of one running.

Phil Thomson:
I think at the time, we’re probably turning over a quarter of a million dollars a year as a society, so how do you run the books, run events and that sort of stuff. And then when you look at into the law firm, it was, you know, probably many different teams as part of one firm, you know, Every, every area or every partner had a different culture to a degree. And so it taught me a lot around again, how do you build teams, how do you build culture, how do you encourage work across a wide range of different areas? And so, you know, taking some of those lessons really helped figure out, well, what do we want to create as a company? And when I, when I left there, some of the things, the good and the bad, I sort of took with me. You know, how do you, how do you not do the bad things and how do you double down on the good things?

Paul Spain:
Yeah, what would you say the good things are that have really stuck with you?

Phil Thomson:
I think having fun and having an enjoyable place where you want to go to work with the people you work with is a critical component. It’s almost easier when you’ve got at the time 300 plus lawyers. You can find those pockets of that across an organisation. And then on the flip side, I think there was very much a work hard, play hard culture as well and see how do you balance that out. And I always remember that the values that the law firm had were pretty typical of most probably big corporates where they didn’t mean a whole lot. And when they did change, there was no discussion around it and it wasn’t sort of drilled into your day to day around what that actually meant. So I remember when they brought out a new set and people first was the third value, I was like, well, shouldn’t it be first if it’s people first? The only reason we knew about it was because they stuck it up on a piece of paper by the photocopier and it’s like, great, we’ve got new values. Well, what do these mean? How do we use them? And so I’ve taken that into building a culture.

Phil Thomson:
And over 13, 14 years now, when we do think about, well, what’s the next iteration of for us, the guiding principles, but those values of a company, how do you make it so that they’re actually ingrained that they used day in, day out and aren’t just ones that you sort of throw away and that any big corporate could use?

Paul Spain:
Yeah, maybe we can come to that a little bit later. Definitely keen to delve into that a little bit more. And then the psychology side of your study, what were the things that you think you really came away with there?

Phil Thomson:
I think just understanding a lot of the fallacies of humans and their minds and how they work is interesting. And I think I’ve continued exploring that area over the last decade or so as well. Just around People ultimately are simple in the sense of we’ve got brains that direct us to almost the most basic thing. And we also. The whole fight or flight mentality means that we often think the worst in situations. And so how do you use that psychology to try and train or trick yourself out of that yourself? And then how do you use that when you’re engaging with someone else, whether it’s a teammate, a customer, a partner, to try and get the best out of the situation. But yeah, it was really interesting just understanding and studying that for a good couple of years around how the brain works, how it doesn’t work, but also the things that you can utilize from that. Again, when I apply it to business, just around how you’re thinking about sales, marketing, and then team as well.

Paul Spain:
Yeah. What was the trigger to finish up your work? Sort of focused on intellectual property there with Simpson Grayson, I think it was

Phil Thomson:
in my very first year there. I asked one of the partners, well, how do you become a partner? Because I was always looking at that, well, what does it. What does it take to get to get to the top? And it was a mixture of hard work, building the right network, and obviously being competent at your job, and then a big dose of luck of when is someone else going to step out of the partnership? That sounds like it’s not something that you can necessarily influence yourself. And I think over time, it also. The industry was seeing longer and longer from going from a junior to being a partner and then really having a seat at the table around, how do you want to run the firm? And a lot of the partners in my time, they’d done four years of really hard work and they became a partner. But suddenly it was 10, 15, 20 years before you actually could become a partner. In this day and age, that’s a

Paul Spain:
pretty different equation, isn’t it?

Phil Thomson:
Very much so. I love the fact that it taught me a lot about hard work, but I do think there was a bit of a mentality of like, well, we did hard work, therefore, you know, the junior should do that as well. But to your point, that time was very different. But I recognized also because of the opportunities that I had that I mentioned earlier on around, like, getting two, three, four years ahead of where I was in my first couple of years, I realized it was probably gonna be five or 10 years of doing the same thing day in, day out before the next real challenge came along. And so I. And I was still interested in what, you know, what building a business would be like, because that was ultimately my first goal. And from there, you know, I started to think and play around with a couple different ideas and nights and weekends. And this is one that I sort of dragged into from a hey, is this even possible to do? And you know, using the legal side of what I understood to help in that space.

Phil Thomson:
And I just made a decision. I just said, like, if I’m going to do something, why not do it now? At the time I was 25 and I said I want to leave my job, you know, a safe career path While I’m still 25 and then throw myself into it and you know, jump off the edge and see what happens. And so I resigned. I said I retired from the law because I didn’t want to have something to fall back on. And I thought I’d just figure it out.

Paul Spain:
What does that look like, retiring from the law?

Paul Spain:
What did you do?

Phil Thomson:
Mainly a psychological trick, right? It was mainly just to say that, so it wasn’t a hey, you know, and everyone said, oh, that’s fine, you, you’ll probably be back as a lawyer in a year’s time. I wanted to tell myself that this was me leaving that part of my journey. And then, you know, it’s the classic, you know, burn the boats, there’s only one way forward and that’s, and that’s doing your own thing. So I hadn’t quite figured out, you know, which of my different ideas that I was, I was playing around with was the one to go for. But I just knew that I needed to and put myself out there and figure it out from there.

Paul Spain:
And so what were the ideas that you had on the table? What are some of the ones that you ended up throwing in the bin?

Phil Thomson:
For instance, when I say throwing in the bin, probably just on a very long term hold. Two of my favorites. One was actually around co ownership of art, artwork and digitising that. And I think there’s a super successful US company that’s done that now with multi billions of dollars because that’s a great idea. Didn’t, didn’t work on that one for very long. And then the second one, I was actually creating a New Zealand Bailey’s alcoholic drink. So taking all the best ingredients of, you know, New Zealand milk powder honey and actually built and made a sample of it and it was delicious. But realized I didn’t have, you know, the marketing chops because I realized that actually in that space it was all about that brand marketing, everything else.

Phil Thomson:
So while I was playing around with that what is now aura was also on the table and we were again doing that didn’t know obviously where it would get to. And so just had a few different irons in the fire. And once we got a initial customer saying, this looks really interesting on the aura side, I was like, all right, this is, you know, put the focus on that instead.

Paul Spain:
Right. So had you built something at the stage that customer came along that was usable? How far into it did you get before you won a customer?

Phil Thomson:
Yeah, I mean, barely usable. We were more focused on the idea itself and understanding the problem space. And, you know, so back then, what, what really piqued my interest there was an article in the paper. You know, $2 million every day was being stolen from retailers across the country. And, and some, you know, friends brought me and said, this is the concept we’re thinking about. Like, you know, how do you capture this information? How do you give it to police? Is it even legal to do? And I was like, hold on a second. This number seems wrong, feels wrong. Let’s go out and speak to some retailers, understand that? And that was sort of the genesis of where we started.

Phil Thomson:
And it turns out, yes, a huge problem. So a billion plus dollars a year here in New Zealand.

Paul Spain:
Globally.

Paul Spain:
It’s.

Phil Thomson:
Globally, it’s huge, isn’t it? Depends on where you look at it. But I think if you put like, crime, if crime was a country, their GDP would be like the fourth largest in the entire world. So we’re talking retail crime, specifically retail crime. We’re talking hundreds of billions of dollars every year that’s been taken. And it’s always just been seen as a cost of doing business. And so, yeah, it became interesting from a, from a problem set of going, okay, well, no one seems to be doing anything about it. Businesses think it’s like a cost of doing business, but it’s quite a high cost when you look at the dollars where. And how could technology play a part in that? And the further we dug into it, the more interesting it got.

Phil Thomson:
And again, it starts to bring in. Both the legal and the psychology side of my brain are going, well, why does this happen? Who’s doing it? Why is no one’s trying to stop it? And when you went to talk to retailers, it became a, oh, we don’t even really report it anymore because it takes too long and nothing happens. So then spent a whole lot of time talking to police about it and going, well, surely, you know, it’s crime, it must be important. And they said, well, it takes too long to investigate. And when we do, nothing really happens either because, you know, the manager’s not there to get the video footage or the evidence we have or the descriptions we get are terrible. So it actually costs more to investigate it than what it’s worth. And for me, I was like, all right, there’s definitely something here and there’s no one else in the world doing anything about it.

Paul Spain:
Wow. How long did it take you to sort of join up the dots to, you know, what the early offerings should look like and to actually put together, I guess, an initial minimum viable product to sell?

Phil Thomson:
It’s probably about a year of exploration, you know, talking to a couple of customers. We spent a bit of time looking at communities and what we realized was that those sort of small stores, which we actually did a trial here in Auckland over in Newmarket, and they were. They loved the idea, but they actually only had one or two events in those stores each month. And so quite quickly I was like, okay, they’re going to forget their password or it’s not going to be high use. And then we realized that it’s actually the larger chains that have the high volume and obviously then the high value probably more willing to pay for something. So we pivoted and transitioned more to that side. And I think the beauty about New Zealand is that you can literally ring up anyone here or get a connection. And for us, we rang Woolworths or Countdown at the time and said, can we speak to Bruce and Loss prevention, please? Because we found out who the person, the owner was, and they said, one minute we’re going to put you through, and so the next minute you’re on the phone saying, hey, we’ve got this really random idea.

Phil Thomson:
What do you think of it? And he was great. He said, do you know what? Come in and see me off the back of that. Got introduced to his team again, spent a fair bit of time on the road with his team talking to stores and the background. We started to build off the back of that. And we started with four stores in West Auckland as a trial. And this is late 2013 now. And then by March 2014, we had enough, I wouldn’t say data, we had enough feeling that the customer agreed with it. There’s something there that he gave us the opportunity of rolling this out further than that.

Phil Thomson:
And so we sort of raised capital off. Off the back of that as well.

Paul Spain:
Fantastic. So break that down for us in terms of what it was that you were going to the market and offering,

Phil Thomson:
then at that point, quite simply just recording a crime event. So if you think about every shoplifting, theft, fraud, assault that happens in a retail Store back then it was generally paper based forms that they’d reported on or emails, phone trees. And there’s some primitive software, often pretty much Excel based type stuff. And so we first we just replaced that and we also then I think the AHA for us was these are not separate events. And so like, you know, you’d have, you know, a shoplifting at different stores and they’re always treated as just different things both by retailers and police. And we went, well, it’s possibly the same people doing that. So how can you start to connect those individual, you know, crimes to the same person or group?

Paul Spain:
Right, so one person might go and hit half a dozen stores in an afternoon or a short period of time and yeah, do you look at that as half a dozen random different things or as one thing?

Phil Thomson:
Exactly. And traditionally when you report that to the police, it would be seen as half dozen random isolated events because it would be a different person, different store reporting it in a different area. And so nothing got joined up. And so that was one of our hypotheses was around is this the same people doing it? And we saw within the first couple of months, well the first couple of weeks we saw people in stores in the same area and we thought it’s interesting, not unheard of. With the first couple of months we saw people traveling from Tauranga, Hawke’s Bay all the way up to Auckland offending. And so that was when we knew there’s something more there than just crime reporting. It actually became how do you start to make those matches and links? And then secondly, how do you get that information to police so they can do something about it? Because it’s all good if the retailer knew about the problem. But how do they actually report that they don’t want to do the same? Spend an hour on the phone to police telling them the same thing they’ve already written down once for themselves internally.

Phil Thomson:
So it was all about how do you build that network of stores, retailers and then law enforcement?

Paul Spain:
What would a crime incident tend to look like? What were you able to log, what retailers able to log in terms of information and so on? So you can join those dots up?

Phil Thomson:
Yeah, I mean the most common, if you take a shoplifting, someone walk into a store might be one or two people and they would target particular products and so they’d throw up their bag or their trolley and they’d walk back out the front door or walk out through checkout and not pay for their goods. And that’s your classic shoplifting. And again, most people thought that was opportunistic. What we started to see in the data quite quickly is people were targeting particular products. And so I can remember vividly there’s a couple of key offenders back then. One was known just to target council rubbish bags. So the only thing they would ever go and steal is rubbish bags and they’d have a place where they knew they could sell those things. There was people that only stole Manuka honey, that was their thing.

Phil Thomson:
And some people only stole bacon. So it wasn’t a fill up the trolley because you need to feed yourself. It was people taking $200 to $1,000 at a time. But then doing this across multiple stores and then ultimately with multiple people became quite an interesting. A different discussion both of the retailer who again they went, oh, we normally do a stock take every six months to a year. And so we know when there’s an issue with products but it’s almost too late and we’re flagging up, hey, your honey has been targeted in the last two weeks. And so they could make immediate changes on their product protection. They’re taking products off the shelf.

Phil Thomson:
And that was the insights that we’re starting to see from that. But this was happening in high volume. We’re talking tens of thousands of incidents every month, every year. That was often going unnoticed, unreported. But we were to start with just going, how do you capture better information, better data on what’s going on? So there was nothing fancy, there was no camera systems, no, you know, none of that. It was actually purely a how do you make it easy to report a crime that’s occurred after it’s happened?

Paul Spain:
So no camera. I guess some stores have surveillance systems but you weren’t tying that into, into your process at that stage.

Phil Thomson:
Again, because we weren’t from the industry, we took everything from a first principles approach of why wouldn’t you just apply some of these other things? We’re seeing that we use our own lives to the problem. And so for me, like Dropbox is a good example. It’s like, why are they not sharing evidence digitally? So they do have, you know, video systems in their stores that’s recording and capturing information. When there was a crime event that would require two police to drive down in a police car to the supermarket, spend an hour at the supermarket, ultimately burning a cd and they do that today sometimes still across the world, or put it onto a USB stick to then take back to the police computer, hoping that they had the right software on the police computer that they could watch that, then download it and upload it again to their system. And we just thought that was wild, that you couldn’t do that in a better way. And so the naivety of us coming into this space really helped us because we just went, well, wouldn’t it make sense to take that thinking or that technology and apply it in this area? So we did that and also we said, well, why shouldn’t you be able to report a crime online? You can do other things online. You couldn’t report crime at the time. We ended up doing a pilot that helped for retailer to then click a button in the platform and it would send through a report to police.

Phil Thomson:
And this was before their 105 digital crime reporting any of that even existed. We what was actually happening in the background to start with is that they’d click the button, it would send an email to us, we would then reformat it, make a PDF and forward it to the police email address. You know, we’re man in the middle of the ad. Things you do when, you know, before you can scale. Yeah, but yeah, it’s an interesting place to play because ultimately you needed to provide the information to police to help them do their jobs as well.

Paul Spain:
Yeah, yeah. So how did that, you know, start accelerating? Where did it go from there in terms of raising capital and so on?

Phil Thomson:
Once we had our first customer, and again we started with a handful of stores and what was interesting about that is we didn’t know the value of what we had. Neither did the retailer. The negotiation was slightly awkward for that fact. And they went, well, we sort of pay, I don’t know, we pay like a dollar a day for our alarm system. So maybe we’d put you in that sort of bucket there. And we had this quite interesting discussion because also they were quite used to buying physical products more so than software. And so the contracts were written more for how do you buy a lot of broccoli that they could put on their shelf versus actually being software that we owned the IP in. But from there we sort of scaled across a number of different stores and then at that same time we started to raise capital because we realized one, we were paying ourselves nothing.

Phil Thomson:
So I pretty much then spent a year not being in a job that was paying me any money.

Paul Spain:
How many of you were involved at that point?

Phil Thomson:
Yeah, so five original co founders. One never joined the business full time, but helped bring the team together and one left a couple of years in. Yeah, we sort of just made it work. I think we won an Auckland University business challenge at one point in time. So I think we had $15,000 prize money. We made that last about a year and we did everything on the cheap. And I ended up actually moving into the office at one point in time to live in the office because it was finished up at my flat here in Auckland and I couldn’t afford the rent. So I spent six months in the back room of the office and first into work, last at work every day.

Phil Thomson:
So set a good rhythm. But yeah, certainly interesting. That was sort of the reason why we wanted to raise capital as well, is not just extra power sales. Our mentality has always been, how do you bring in more better people as part of it? And so we knew we had something there with that customer and that was the catalyst to then go, well, let’s raise a small round of capital. And at the time, the capital markets in New Zealand weren’t great. And so we took what we could and again made. I think we ended up with about $300,000 of initial capital and we made that last another 15 months as well. And so we hired some engineers.

Phil Thomson:
Our very first software developer we hired still works with us today over 10 years later as well. So it’s been quite the journey. But we knew we wanted to scale, we knew we wanted to grow outside New Zealand, and so raising capital is part of that journey. And we didn’t know a whole lot about building and running a business other than what we’re seeing and hearing online from what’s happening, mainly in the US actually. And we knew that capital raising was an important part if we wanted to go. Go hard and fast at it.

Paul Spain:
Yeah. And so what, in addition to the software developer, which, you know, great to still have that member of your team with you, what were the key things that enabled you to do and how did it also impact your thinking? Because when you don’t have much, you kind of think in a particular way, you know, suddenly you had access to some money. Might seem small in the context of the business today, but how did that help you, you know, re look at the business?

Phil Thomson:
Yeah, I think there’s definitely pros and cons of one raising money, but raising a small amount, because I think you’re right, we very much kept our frugality, which I think ultimately helped us in the long run. And so, you know, even when we’re out training stores, you know, we would fly into Wellington and get a rental relocation car that cost a dollar to return it back to Auckland, and we’d spend the entire two days driving up the country training stores as we went, because we had an Agreement with one of the customers that every store we brought on with training that they’d start paying for. And so we did things like that that obviously didn’t necessarily couldn’t scale, but we had that mentality of we just have to get things done. But the other thing it did, which on the positive side as well is it meant that we could start to look at international markets more than just desktop research. So we used a lot of that money to look at, well, okay, let’s figure out what’s happening in Australia, what’s happening in the the U.S. we probably spent four years flying in and out of the U.S. just to understand the market before we even went into it. But we needed to build more of a product, more of a team.

Phil Thomson:
So that’s where the focus was, that first sort of capital round. And from there we realized again, no one was doing this around the world. So in our view, how do we go faster? In retrospect, we probably didn’t go fast enough. But at the same time I think the, the hindsight and the benefit of time has allowed us to be where we are today as well.

Paul Spain:
Yeah, yeah. And what other roles did you, did you hire for at that time?

Phil Thomson:
We had, we had a couple of product like product roles, the product management design. And again we knew that design was really important because for the end user of our product was actually the store manager, the checkout person, the frontline police officer. So it had to be something that was, you know, we call it consumer grade. You know, everyone was starting to get iPhones and things like that. So why shouldn’t enterprise software be the same versus what we’d seen elsewhere and what other systems that, you know, retailers or police had was, was very old school. So that, you know, it was an instant way to stand out for us is by having just a great user interface user experience. So we probably over optimised for that, which is ultimately benefited us. And then we hired a number of probably junior software engineers and again in our mindset was well, we can hire more people for less dollars.

Phil Thomson:
One of the reflections is probably like if you can hire one amazing person, probably a better investment. But these are sort of all the learnings we had along the way.

Paul Spain:
Yeah. Now just walking back, what year did you start the business and at what point was it that you raised that first capital?

Phil Thomson:
So started sort of end of 2012 and then first capital was March 2014.

Paul Spain:
And then you know, walk us through from there. Those visits to the U.S. what did they look like? You know, had you raised more funds at that point or were you still kind of, you know, stretching a very small number of dollars?

Phil Thomson:
We went to Australia first because, and again there’s a number of New Zealand retailers that were obviously owned by Australian retailers. So there was some connections there we could go and, and explore. And we found the same issues that we heard and saw in New Zealand and Australia. So again we knew, okay, there’s something more and bigger here. So did a couple of trips there and then as we were going up for the US we raised another round which would have been middle of 2015 by then and again that was to start to explore further. We pretty much got to the point just as we closed that round, I remember we actually ran out of $0 in the bank and thankfully the investors actually did come through on that one. But we ended up deciding the capital round was closed, we didn’t have money in the bank and we had a conference in the US that came up and we decided rather than paying ourselves, we would take nothing for the first couple of weeks of that until the money came through and put that towards air fares and conference instead. So that was our big trip up to the US Got there and figured out that it was much bigger than what we expected.

Phil Thomson:
Again, yes, on the problem side, but actually on the whole like how does the industry and the market work over there? And it was a real eye opener to walk into our first conference and you know, we had a table at the very back of the hall and you know, we’d been to a few conferences in Australia and there’s sort of 10, you know, 10 vendors there in a little room. This was a full like four football fields long convention center and there were cranes in there erecting like proper two story things. And we turned up with a, with a computer screen and a pull up banner and we realized that we’re so out of our depth then and there. But again we sort of kicked into, into the how do we do this gear? And went straight to Walmart, bought a big 50 inch TV, bought a table and bought a sheet to go over the top of it and, and made the most of it. Yeah, but yeah, sort of the, the fun trips of figuring things out and figuring out what that market looked like. But yeah, like I said, we ended up spending a couple of trips every year just to go back there to see how the market was progressing and how we’d enter it when time was right.

Paul Spain:
And what would you say you got out of those initial, those initial visits and whether it’s relationships or learnings and so on, when you look back, you realize actually that was well worth it.

Phil Thomson:
Yeah, I think that the size and scale of the market was an easy one for us to learn quickly. But also I think what we learned was the core of our product idea was correct. There was no one again doing what we were doing in that market either. But the sophistication and the size of the retailers in the industry was next level. And so we didn’t have quite a the right product at that point in time to enter the market successfully. But we did meet a lot of people. I think it was very much a find out who’s who in the zoo, get feedback from them. One of the people we met up there ended up being one of our early hires into our U.S.

Phil Thomson:
team. When we actually entered the market there and then. So that was like super helpful to go and do, but I think it was our second or third trip. We came back and we just said, look, there’s something here, but we have to rebuild the product to meet the demands and the scale of the US market. So we actually spent 18 months rebuilding the entire product from the ground up in order to do so. So it was quite an interesting thing for us to take that. And at the time we were rolling out into Australia successfully, like our Net promoter score was plus 70. We had no churn.

Phil Thomson:
So on the metrics and the data, you’re like, well, why would you ever almost stop and do that? But we took our customers at the time on that journey and said, hey, you’re not gonna see a whole lot out of us in the next 12 to 18 months as we rebuild. It’s going to allow for a lot more and it’s going to be a whole lot better. But please trust us and come on the journey with us. And again, thankfully, they’ve stuck with us to this day. And the big thing that we really drove home with them both here locally in the US was just innovation. We were always up for taking on board ideas and feedback and then turning them into product that they had never thought about themselves before in that way either. So that sort of bought us a lot of brownie points, I think, with all of them, because we’re always coming up with this next idea, the next way of doing things. Every time we saw them, here’s a new design.

Phil Thomson:
And so they had this faith in us and that really helped us. When we finally did launch in the US market, we’d built up these relationships with people in the US by showing them the progress of the new platform. As we built it fantastic.

Paul Spain:
Now break down for us what it was about the size and scale of the market that you took away from those initial visits.

Phil Thomson:
A couple of things. One just, you know, we’re talking about retailers who have got thousands of stores. You know, the biggest retailer in New Zealand has 200 stores. And so we would classify that as a mid market retailer for us these days. But you know that size meant that there was a large volume of events. You know, some of our customers have a million chrome events that they know about, you know, every year. So just building, you know, from a technical like for the back, the back end and the databases to actually be able to handle that first and foremost. Foremost.

Phil Thomson:
Secondly, just like the spread of geography can make it complex around how do you start to make connections across that data set. And then thirdly, as part of that geography, the law enforcement market, which we know is important, you obviously need police to help stop and solve crime. We have one police force in New Zealand, we’ve got about eight in Australia, there’s 43 in the UK and then there’s 18,000 in the US market. And just knowing that again, okay, well how do we start to build some of that into the product itself? And also there was a huge amount of, call it red tape and bureaucracy with these large enterprises. So you know, the very first story around ringing up retailer here in New Zealand and getting straight through like you couldn’t do that in the U.S. right. And so not only do you have to make your way up to the right person in that company, but then you’ve actually got to meet with 10 other people, which is the IT legal privacy data. And so you’ve got to build a platform but actually you’ve got to build a company to be able to do that in the right way.

Phil Thomson:
And so we weren’t quite ready back then, but it took us a bit of time to actually build those things out.

Paul Spain:
So the US market really informed you about the sort of roles you needed and how you needed to build the company before you entered that market.

Phil Thomson:
Yeah, and also just because of the like again you got retailers who are losing billions of dollars a year. They’re more sophisticated in how they’re going about those operations as well. And so we had retailers that had 100 ex FBI investigators sitting in a dark room looking at Excel spreadsheets, mind you, trying to figure out these connections. But because the prize was so high for them to actually try and figure those things out, we had to build out, well, how do you help them with those investigations? Which is super Complex touch, a lot of different areas of their business themselves also with law enforcement. And for us we needed a bit of time to also understand and learn. And I think one of the things that we’d done well up until that point was because we didn’t have this time pressure, partly because I don’t think we’d raised enough capital to have any real external pressure on us. And then secondly, back when we started, the focus from a technology point of view was on online fraud. E Com was the big thing coming through there.

Phil Thomson:
So everyone had sort of just forgotten about the physical crime happening in the real world. So we had a bit of time because no one else was in the space. But once we sort of got into the US market we then knew we had to go a lot faster from there. So we sort of took our time and then from there put the afterburners on.

Paul Spain:
Yeah. And so how did the capital raising sort of fit in alongside that? What sort of numbers were you raising at each stage?

Phil Thomson:
It was still small numbers back then. We’re talking millions of dollars at a time and it was almost enough to do another 18 months to two years again on a quite a small cost base. And it wasn’t until probably we’d broken into the US market that we raised enough money to probably put the foot down and do it, I’d say more properly than we have been doing it. And I think we realized that by that stage it was sort of must have been 20, 20, 21. We’re six, seven years into the journey then and we’d really been doing things not properly but we’d just been skimping on those areas which again we thought was good from a dollar point of view. But we had to start to invest, really invest in getting world class people figuring out how do we have people in market and how do we, how do we ensure we’re, you know, scaling the company in that way as well. And you know, it was, it was those early investors though, and a number of them are still on the journey with us today. Right.

Phil Thomson:
We’re talking that they’ve been there for 12 years now. You know, they’ve, they’ve always backed us but it was important, you know, Even back in 2015 with us of a second round we had, you know, K1W1, so the Tindalls came on board then, which is great from a retail brand point of view. We had Sam Morgan at the time joining again. Good credibility for us as well. And then we are our first Australian investor as well. And so, you know, and again, that was reinventions of the Westpac Australia’s venture backed there. And again, incredible insights. They’re still on the journey with us as well, but they started to have a bit more push on us around.

Phil Thomson:
Well, here’s what, you know, here’s introducing us to other portfolio companies and founders who were, you know, you know, often a step or two ahead of us. And it sort of kept that ambition start to play through.

Paul Spain:
Yeah, great. And so where did you kind of really start seeing the acceleration and start seeing things move? Did that happen quite quickly after entering the US market, or what do you think the things were that really triggered that for you?

Phil Thomson:
Yeah, so we entered the US market at the back end of 2019 and Tom, my co founder, moved up there and then Covid hit in 2020 and that really slowed and almost stopped us in that market for about a year, which was tough because we had these big dreams of building a large team and company there as well. But through that time we were actually getting a lot of traction in Australia and so I think we probably tripled the business that year across just our Anz base. So we knew we had something there that was going on well. And then once we got the US really kick started, that’s when it went a whole lot faster. But this is the fun thing, I think, about software companies and compounding growth is that every year it just looks way better than it did the five to 10 years before that as well. But it was definitely a slow burn to get there because like I said, we had to learn a lot as we grew, both from the industry point of view, but also just as founders and people and building a team. When you’re. When you’re 10 people in one room, it’s a lot easier.

Phil Thomson:
Part of our reason of moving into Australia was to work with larger customers, but also figure out how do you build a team across different geographies, how do you have meetings when not everyone’s in the same room? And that sort of just has scaled and the complexity has scaled with it, I think as well. Whereas now we’re in New Zealand, Australia, the US and the UK in terms of offices and people there. But we also now have markets in, you know, Europe and Canada and getting into Central and South America. So, like, it’s quite a. It’s been quite a cool part of the journey, but also, you know, a lot of just learning and figuring it out as we go.

Paul Spain:
In terms of your scale now you’ve got what is around 150 locally in New Zealand and then more than 100 on top of that in your other locations.

Phil Thomson:
Yeah, I think we’re about 260 people now across the world. And you know, New Zealand’s still our home both in terms of in our heart, but also our R and D home as well. I think we over optimize almost for New Zealand on that basis that we live and work here. And that’s about 90% of our revenue now is global, is outside of New Zealand. So US, UK are some of our very fast growing markets but we’re very much focused on how to make sure that, you know, New Zealand communities, retailers are all kept safe. And I think the great thing is that we can utilise those early customers who’ve got this high trust in us to also try new things here and take them to the rest of the world.

Paul Spain:
Now it seems you learnt quite quickly the benefit of, you know, hitting up a bigger retailer versus the sort of smaller retailers. How’s that played out for you on a global basis? Cause you know, often a company will kind of, you know, work their way up to the bigger players, but it seems like you’ve kept going for those, the bigger retailers rather than working your way up.

Phil Thomson:
Yeah, I think once we figured out that it’s the biggest retailers that have got the biggest problem we did, which is non traditional, most software companies and startups would start small and work their way up and we figured out that was our strategy was actually to go the other way around. And so entering Australia, I think Coles was our big first retailer there, largest supermarket chain. When we went into the us, we targeted Walmart and managed to get them on the platform. And again everyone says when you enter the us, choose a city or a state if you’re going to do it. And whatever you do, don’t go after Walmart first because they’ll eat you alive and understand why they’re an incredibly large, incredible, complex business. But for us, you know, incredibly large and complex problem that we thought we were best placed to solve. So that made a whole lot of sense. And then we took that same learning into the UK and so, you know, the likes of Marks and Spencers and Boots, like well known brands because for us it was about not just the customer being the right customer for us, but having that right network of stores meant that we could engage well with the problem and also with police in those different areas.

Phil Thomson:
And then there’s the credibility piece as well. Like having those brand names mean that the next time we get to the next customer they’ll take more Notice.

Paul Spain:
Right.

Phil Thomson:
If you’re working with those big brand names. And so for us, it became a core part of our strategy around doing that. And now we’re going down and figuring out how do we help the smaller retailers as we progress. But yeah, it’s meant there’s been often like long sales cycles. And when we went to the US market, as much as we had all these big brand names from New Zealand, Australia, they said, who? You know, one, where is that? And two, are you a U.S. company? And three, who are your U.S. customers? Right. So they didn’t actually care at all.

Phil Thomson:
So we had to start again, you know, in the us was starting from scratch. But the great news, when we entered the UK market, they went, oh, we know all those Australian retailers, we know those US brands, so welcome in.

Paul Spain:
Yeah, yeah. And I guess all of that really proved out your approach to rebuild the software before entering the US market. So you didn’t get laughed out of the room or however else you might describe what would have happened if you hadn’t done that.

Phil Thomson:
Yeah, exactly. And again, I think there’s still that naivety piece helped us because we were purely looking at it from a problem point of view and surely this makes a whole lot of sense. Why wouldn’t you want to help solve this problem? Retailer A. And almost that key humility helped us versus if you’re in the us, it’s quite hierarchical there. And so we use it to our advantage because we just didn’t like. We literally just wanted to understand and know more. And so we’d meet with anyone and everyone in that space and just pick their brains on what they’re thinking, how they did things. And also when we went back to meet with them, it wasn’t this sort of.

Phil Thomson:
It wasn’t like a weird relationship because we didn’t really know how we’re meant to act or behave and we’re still relatively young and so we just got amongst it. And actually one of the things that we kept bringing to the table at these conferences was we wanted to have a whole lot of fun while we’re building a business as well. And so we sort of got this reputation, a really good reputation of enjoying our prospects at the time. And now customers just enjoy hanging out with us and the team for doing so as well. And so it’s been quite cool to build those relationships like that. Rather than being purely what’s often as a solution provider or a vendor to the customer, you end up being on this much more mutual playing field of we bring innovation to you and you tell us how this would apply to your business.

Paul Spain:
Yeah, that’s great. And what’s been your approach to culture within the business and creating an environment that that’s good that people want to stay for?

Phil Thomson:
Yeah. And that’s one of the big things I sort of took out of being in the corporate world was how do you encourage that view of on a Sunday night, are you excited about Monday morning and going to work? And hopefully the answer is yes. And that comes from having a great environment, both in terms of the physical environment like the office that you’re going to or the people that you work with.

Paul Spain:
You got a very cool office in Auckland, by the way.

Phil Thomson:
Thank you. Yeah, that was part of it. Right. But also how do you have a mission that people want to be part of and be on? And every day they see themselves being part of something bigger than that. And so for us, we’re lucky in the sense of it was natural having a mission around connecting communities to stop crime. And no one wants crime in the community, so. But a lot of people join us on the back of that as well. And when you start to understand and hear the stories of how we’re impacting on people in their day to day lives.

Phil Thomson:
So we’re talking the frontline retail worker who feels safer. We’re talking about the police officer who’s helped solve a large retail crime ring all the way into now we’re helping with that digital evidence collection. We’ve helped with most murder inquiries over the last five years. And you see Zealand as well. And so you start to go, okay, technology plays a really important role. And so the people that are behind the desk or behind the keyboard who are building that many other organisations, they haven’t been able to see the impact of their work, but they get to actually hear and see that every day. And the great thing is our customers are really good at sharing with us some of those wins as well. And so when a retailer says, hey, actually you’ve helped us in this particular example, or we’ve just made a massive investigation particular become successful based on the product, it inspires them to keep thinking and building and working.

Paul Spain:
Now you’ve built, I guess a customer base that’s pretty impressive. Top retailers and multiple markets, I think, what’s it, 85,000 or more stores now that are using your technology? Law enforcement agencies, I don’t know what’s your reach on that side in terms of police and law enforcement?

Phil Thomson:
Yeah, there’s a couple of thousand agencies now on that side and I think we’re the stores that we’re used in or the retailers we’re used in, I think there’s over 6 million people who work in those stores. So from a team point of view, we think about that. How many retail workers are you protecting every day by what you do?

Paul Spain:
That’s fantastic.

Phil Thomson:
And, yeah, it’s again, a core driver for us.

Paul Spain:
So you’ve got all of those good things, but being in business is not easy. What would you say have been the hardest challenges along the way for you?

Phil Thomson:
Yeah, I think there’s been a number of pivotal moments and often they’ll center around one deal or one customer particularly. Like I said, our view of taking on the world was every year we’d sort of live or die on one deal with those sort of big brands and a mixture of things being out of our control. I think our first Australian large retailer, we were the night before going live with their pilot there and their chicken rotisserie caught fire in one of their stores. Nothing obviously to do with what we were doing, but the impact of that was. Hold on a second. What actually happened was they were testing some new technology in those stores and that happened to cause the fire. And therefore they’re going to have to rewrite how they do technology pilots from now on. So that pause, when’s it going to come online again? That actually ended up pausing us about two or three years by the time we got back around to getting into that retailer themselves as well.

Phil Thomson:
So there’s things like that that happen. A big retailer up in the us, Our very first deal there, we actually lost out on that deal to start with. We didn’t quite get our market entry and pricing right before that. It took us another 12, 18 months to win that one back. But each of those sort of times, it was suddenly a hard stop in the business because we’d also been, again, with that sort of an opportunistic mindset, very optimistic of, right this is going to happen. And therefore it’s going to open up our world to whatever it might be, hiring more people, capital raising, changing what we’re doing in terms of our jobs day to day as well. And then it all sort of comes crashing down with one phone call, and so you sort of gotta pick yourself back up again, figure out, is it something that’s in our control, out of our control, how do we bounce back from that? And I think the great thing we’ve always done well is figure out how do we make the most of those bad situations, which is normally just means staying close to that customer. Giving them regular updates and taking the opportunity when it arises of stepping back in there and saying, hey, actually we can help you in the space.

Phil Thomson:
Give us another go. And whether or not we figure out how to do that to meet them or their team’s demands or what they needed, those are sort of like that sort of the pivotal points. And then I think just growing a team and doing that globally and spending a lot of time now on a plane. Again, pros and cons of building a company from here in New Zealand. And we knew from the get go that was sort of part of it. But it has an impact on. I’ve got an incredible wife and on the family as well, you know, as they hold down the Ford at home as we’re on a plane around the world.

Paul Spain:
Yeah, yeah. How does that play out family wise for you?

Phil Thomson:
Yeah, it depends on how long I give between notice and getting on a plane. And you know, and some days literally as a, you know, one of our core customers has said, we need you there tomorrow. And so I’m on a plane that night. But yeah, and it was an incredible job. We’ve got five young boys at home as well. So it’s one of those things that, you know, obviously a bit of give and take, but you know, she holds down the Ford at home and, and really it just comes down to great communication and, and also, you know, she’s very, very supportive of the work that we’re doing and, and therefore supports me going, you know, going around the world at times for that benefit as well. But, you know, we’ve got some rules in place around, you know, ideally the less weekends out of the country, the better. And you know, so a lot of time it’s a Sunday night flight out and a Thursday night flight back in to get home for the weekends and be on the boys as well.

Paul Spain:
Yeah, yeah. It’s good to establish those sort of framings, isn’t it? Yeah, yeah, yeah. And working with your co founders, you know, I think there are different approaches. How has that played out for you, having a group of co founders, you know, not just you, not just you and one other, but, you know, a number of you. Yeah, I guess five initially and then that sort of downsized as well.

Phil Thomson:
Yeah, yeah, started with five. And I think again, you always start with best intentions in mind and everything’s going to be great and generally everything’s going to happen very quickly. Right. We’ll be have built this business in three to five years and we’ll be best friends as part of that. And It’ll be done. So it’s a natural thing that most founders go through at some point in time. Start with five and we’re now down to two. And over time, people step out of the business for various reasons, whether it’s personal or, you know, I don’t know how we would have done it if it was a single co founder.

Phil Thomson:
I think having, you know, particularly James Corbett, Tom, myself, we always had very similar views on building a team, building culture and that mindset about how do we just build the best product for our customers. So that’s always sort of held us true. And, you know, I think we’ve learned a lot over the years just from each other. You know, we’ve picked up each other’s strengths and often they’ve been each other’s weaknesses previous to that as well. So it’s been quite good, actually, just to build a lot stronger off the back of those things. And now James and I very much again, focus on the innovation side. So it’s almost come full circle in a way, because particularly with the way the AI is going at the moment for us, we’re very much back on the tools around, what’s next, what’s possible. And it’s most of the funnest part of the journey now because we’ve spent, spent so long building the core foundation of the company and getting the chance to innovate and chat through some new ideas is heaps of fun.

Paul Spain:
And I’m curious about you being the only player effectively in the market when you started. Now, these sort of situations don’t usually sort of stay for long, and I guess the same for Auror. But, you know, how did that impact you when you realised, oh, it’s not just us anymore and others are coming after the same business that you want to win?

Phil Thomson:
Yeah, I think we always knew our biggest early competition was just education because we’re sort of creating almost this new view of how we could solve the problem. And it took a long, long time just to help our customers understand why we’re doing what we’re doing, why we’re different and why their pay performance were no good for it. And then when we entered the US market, I think there was another competitor in the US that was about the same time thought, hey, there’s no one really doing this well in that space. Not exactly how we’re doing it, but they’re at their own way of doing things. So we ended up sort of battling them here and there. Our biggest competition is often actually the retailer themselves, so they’ll have their own IT team that wants to build their own product. And we’ve had at least three or four occasions where a large retailer has piloted with aura, seen some great results, and then their team have gone, oh, we can just build this ourselves. So I think we’re so far three from four around, actually getting them back as a customer after they’ve tried it themselves and realised what they’re missing out on by not being with Auror.

Phil Thomson:
So that’s. Yeah, it’s like, it’s a good little trip on the shoulder to have, I think when they say, oh, we’re going to go and do this ourselves, like, well, you’re not going to be able to. And here’s the reasons why. Again, that’s the reason why I want to go back to them each time and say, hey, how’s it going? How are you finding this thing? Or we can’t do that thing. It’s like, great. So that’s probably our biggest competition is just around helping them understand that. And now, again, the UK market’s been our fastest entry to date and there’s a whole other smaller players in that market. But again, no one’s still doing it the way that we’ve done it around bringing retail and police together and then being smart around making the connections across the data, rather than just being individual events being reported through.

Phil Thomson:
And so that sort of kept us at the front of the pack.

Paul Spain:
And you’ve moved into facial recognition type capabilities. How is that changing the game? Because I guess it’s an area that probably freaks some people out. You’ve got to deal with different legal scenarios and different markets, so probably not

Paul Spain:
something you can just roll out across

Paul Spain:
the planet in one go and just say, oh, we turned on this new feature yesterday. How does that sort of fit in for you and the future?

Phil Thomson:
Yeah, we’ve been super deliberate about facial recognition technology. It’s something that we have been almost tracking since we started the company. The technology itself’s been around for a long time, but back then, a couple of things at play. One common question would get from retailers, from investors, from others is like, well, surely facial recognition just solves this problem? And we wouldn’t need aura because there’s no crime that’s going to happen, which we didn’t quite take on. But also what we’re seeing from the early use of it was that the accuracy wasn’t there. There was issues with bias as well. And so we’d been actively telling our customers that it’s not ready yet. We.

Phil Thomson:
We’d done things with other technologies like license plate recognition. So looking at vehicles instead, which is a lot higher accuracy and had some really good results in that space. We understood the technology itself and actually the workflows around. How do you put safeguards in place around such use? But about call it 18 months ago, there was a shift again in the accuracy rates and the technology changes there. But also we are seeing a lot of poor use of that technology. Our general preference is to integrate with other technologies rather than being build anything ourselves. And we were seeing a number of deployments across retail and across just industry generally that had us concerned around how they’re operating. And so we had a long discussion internally and actually decided that it was best for us.

Phil Thomson:
If someone’s going to do it, we’d rather do it the right way and put again, put the right guardrails in place. And so we set up a team to explore it to start with, had a number of discussions internally again because I think we were all concerned around the use of technology like facial recognition accuracy, public perception of that, how it could be misused, which was great because we crowdsourced all that from across our team, from customers, from the public and then figure out, well, how could we stop and mitigate all those things from happening. So we ended up building it in a way that actually it’s connected into aura. So you’re not having the scope creep that most people are concerned about. So it’s not a general purpose system that can send you advertising or help with loyalty and marketing programs. It purely is. If someone walks into the store, it’s looking for repeat high risk violent offenders. If it matches on that, it will send the alert to a person to then review and confirm that if there’s not a match.

Phil Thomson:
So if it’s a good honour shopper, no information has even captured. So it’s just utilizing the same system that’s already in the store in terms of a video camera for that. But there’s a whole lot of rules around, you know, what can, you know, who can even be enrolled in the first place. And they’ve got to hit a certain criteria that the organisation sets on the retail side, you know, no biometrics are actually captured, it’s used to match and then they’re discarded. So again, we’ve done a whole lot of work around that space because we wanted to make sure that ultimately what we’re trying to stop is that violent person coming into the store and attacking someone. And unfortunately that’s just the reality now of what’s happening in the retail Space because we’ve been able to show that 10% of people are doing about 60% of the crime. But those repeat people are four times more likely to be violent or aggressive. So they’re coming in with a weapon often, or they’re threatening to punch someone in the face.

Phil Thomson:
And so how do you get that information and their alert to the right person to then be notified of, hey, this, you know, this is a known high risk offender and which might change the way they actually interact with that person in the get go. But it all came down to, you know, again, using that sort of privacy law and everything else that’s in the back of my head from. From earlier career.

Paul Spain:
Yeah, super helpful.

Phil Thomson:
Yeah. How do you apply that? And then to your point around globally, like, how do you apply at a really high watermark? That means that if you’re using this elsewhere, you don’t have to change anything because you start with a really high bar and use it purposefully. Rather than being a technology that someone’s created and said, hey, you can use it for 10 different reasons and one could be marketing, one could be security, we’re saying you can only use it for this particular reason.

Paul Spain:
Sounds like a good approach. Now, as we wrap up all the numbers that I’ve seen that your growth is on a really strong trajectory, 66% year on year growth for North American market, you’re growing in other parts of the world as well. This must leave you with a lot of confidence for the future. Any tips that you can share with listeners that are at varying stages in their businesses that you can leave listeners with in terms of takeaways, I think

Phil Thomson:
you’re gonna surround yourself with ambition. I think if you’d asked us if we’d be where we are today when we first started, we wouldn’t have dreamed of it. But, you know, when I say ambition, it’s figuring out, where do you get that from? For me, it’s always been, how do you find that? From listening to podcasts and videos, other things of other ambitious people, which could be companies around the world who are doing these things. But then also, how do you have ambition pushed upon you? And so we’ve had some great discussions from our board. One of our directors, Danny Yelligan, he’s been great at this. Probably every three years or so we get this challenge of like, okay, great what you’ve done, but what’s next? And actually open yourself and open your minds to what’s possible. Because I think this is maybe a little bit of a downside of being from New Zealand is that we actually don’t have enough examples of that still yet in the business world, which means that you don’t end up thinking it’s possible to do, but you have people like Adani or someone else pushing you on these things and actually you go, oh, wow, hold on a second, we could be there. That’s not out of the realm.

Phil Thomson:
And therefore, for me, and for every three years, we get this sort of injection of ambition in the arm of going, oh, cool, great, what you’ve done. What’s next? And let’s go for it. And that’s served us really well. And I think the more we can create that across New Zealand as well, the better. And part of what we’re doing here and sharing some of these stories is hopefully the next generation coming through gets that from day one.

Paul Spain:
Fantastic. Oh, thank you so much, Phil Thomson. Really appreciate you joining the show.

Phil Thomson:
Thanks, Paul.

Paul Spain:
All right, cheers.

Paul Spain:
Well, thanks for listening in. I trust you enjoyed hearing from Phil Thomson, hearing his story and that of aura. New Zealand Business Podcast is brought to you by one New Zealand and Gorilla Technology. Be sure to listen in to our other episodes featuring many of New Zealand’s most incredible leaders, including Brooke Roberts of Sharesies, Sir Peter Beck of Rocket Lab, Cecilia and James Robinson of MyFoodBag, Sir Stephen Tyndall and many, many more. And be sure to share this episode with a friend or colleague who you think will get something out of it. And before we go, quick question. Are you sure your company is solid from a cybersecurity perspective? If you’re not fully confident, get in touch with Gorilla Technology today for an advisory session. Well, thanks for listening.

Paul Spain:
This is Paul Spain signing out, and I’ll catch you on the next episode of the New Zealand Business Podcast.

 

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