Claudia Batten: Tech Entrepreneur, Advisor and Board Member

Posted on 20 Mar 2026 in Featured, Podcast

Claudia Batten: Tech Entrepreneur, Advisor and Board Member

Host Paul Spain sits down with Claudia Batten, a respected voice in technology and entrepreneurship. From her childhood in Karori to her pivotal role in selling her tech firm Massive to Microsoft for over $200 million, Claudia Batten shares her unconventional journey through business, law, and leadership; moving from a law career to the heart of the New York tech scene, co-founding industry-shaking companies, navigating mergers and acquisitions, and being comfortable with discomfort. Claudia opens up about the essential role of resilience, lifelong learning, and team alignment, the power of curiosity, and what it means to be a disruptive thinker in today’s world.

Special thanks to our show partners One NZ and Gorilla Technology.

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Episode Transcript (computer-generated)

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Paul Spain:
I’m your host, Paul Spain, futurist and chief executive at Gorilla Technology. I love to see people and their organisations thrive. The New Zealand Business Podcast is all about helping you learn from our most innovative and tenacious leaders. Today, we have the privilege of hearing from Claudia Batten, one of our most respected voices in the world of technology, entrepreneurship, and business leadership. Today we have the privilege of hearing from Claudia Batten, one of our most respected voices in the world of technology, entrepreneurship, and business leadership. Amongst other accomplishments for Claudia that she is known for is selling her firm Massive to Microsoft in a deal worth in excess of $200 million. We’ll delve into Claudia’s story, which is full of insights and lessons on innovation, resilience, team alignment, and her squiggly life career philosophy.

Paul Spain:
Claudia is currently board chair at Serco and also serves on the boards of Michael Hill International, Air New Zealand, and Vista Group. Claudia also mentors and advises some of New Zealand’s brightest founders. The New Zealand Business Podcast is proudly brought to you by One New Zealand and Gorilla Technology. Before we jump into the interview, a quick question. How confident are you that your organisation is well positioned from the perspectives of technology and AI enablement and cybersecurity risk reduction? If you’re not confident, get in touch with Gorilla Technology today to learn how a technology or cyber audit could help you. All right, let’s jump in. Claudia Batten, a real privilege to have you here in the studio. Thanks for joining me.

Claudia Batten:
Thanks for having me.

Paul Spain:
Well, love to get started by hearing a little bit about where you were born and where you grew up.

Claudia Batten:
My childhood, the early years. I’m a Wellingtonian and I grew up in Karori. So I’m very used to being chilled to the bone, as I commiserate with other folks from Karori on a semi-regular basis. So went to school there right through secondary school and actually went to university in Wellington as well. So I was at Vic University and I did law and commerce, and I got honors in law. So I was a bit of a ratbag as a younger child, like all over the place. And then I was about 15, I got scared that I wasn’t gonna have very good grades. So I kind of buckled down and from there got quite studious.

Claudia Batten:
So pre-15, kind of chaotic, post-15, quite studious. And now I like to think I’ve got a nice merger of the two.

Paul Spain:
And so what was your upbringing like? What sort of things, you know, took your interest? Can you see any connection between the things that took your attention, you know, during those years growing up and what you ultimately ended up doing?

Claudia Batten:
Yeah, there’s a couple of things when you look back. I always love the Steve Jobs quote that, you know, the dots make sense in the rearview mirror, basically. And there are a couple of things. So pretty pretty normal childhood. Mum and Dad were both in business. And so definitely surrounded with a lot of business conversation from a young age. And a lot of their friends were on various boards as well. All the men, of course, because that was, that was that era.

Claudia Batten:
But I know that I was really fascinated by business. There was just something about that, that I felt really interesting, kind of the maker-builder side of things. And it really was a desire to go into building things that ultimately had me leave law and want to go off and do something different. So I definitely know that was a data point. And even to the point that I used to take my dad’s Fortune magazine and Economist for reasons I don’t really understand. But, you know, at a young age, I was reading those. I don’t know, maybe there just weren’t that many magazines when we were younger and they were expensive. And I’m also a very curious person.

Claudia Batten:
So I think that that definitely fueled my interest. The other thing I’d say, and I think this is a great one for parents, is my folks, you know, back in the day bought a computer for us to have because a friend of theirs had said this technology’s really important. And bless my parents for doing that. So I got really interested in technology, I think, through that lens. I was by no means a coder nerd, like that is not what I was, but I was early to have a laptop, early to have a mobile phone. Like I was just really interested in, the new stuff. And so I think that really cracked open a curiosity in the tech field for me as well.

Paul Spain:
Yeah, that’s great. And do you know, were there particular things that sort of triggered that curiosity, or was it the fact that the technology was there? So then you got involved because you had access to it?

Claudia Batten:
I think I like new things. So I think like I’d still think new tech is cool. So there’s just something in me. My grandfather was an engineer and he was a little bit like that too. He had one of the early, he had one of the early brick cell phones too. Like there’s something in my genetic composition that likes, you know, when I get a new laptop, I feel quite giddy and excited. Like it’s, there’s something there that I just, I think also from a young enough age, seeing the power that you could get from technology, I think that’s the other piece for me that I’m a, quite a high kind of productivity, efficiency-oriented person. And knowing, that’s what I love about AI right now, knowing the power I could get out of these technologies, I think.

Claudia Batten:
And then the newer computer was always faster and had more memory and all of the rest of it. So I think it was a little bit of in my genetic composition, but also playing with it could see how that could kind of power me up.

Paul Spain:
And did you have conversations that were about that crossover between business and technology?

Claudia Batten:
Not at all. No, not at all. No, that’s a great question. No, I think, I think the only, I think the only piece there is because I was reading Fortune and Economist and yeah, those were the two and fascinated by the dot-com boom and bust that was kind of happening when I just started at Russell McVay in Wellington. So I’m, you know, being a lawyer, I was in intellectual property as well and technology. And so there was definitely interfaces. And I also studied marketing and have a deep, deep love for marketing and consumer behavior. So I think there’s an intersection there, which did actually lead to the digital element of my career.

Claudia Batten:
But no, no conversations at all in my family about that.

Paul Spain:
Wow. Okay. And so then how did you decide what to study at Victoria University?

Claudia Batten:
I think I did law just by default because I have an innate sense of justice. It’s very deep in me and highly argumentative. And so it was kind of obvious that that would be a good thing to study. I do vividly remember, I actually, I can visualize where I was standing on the stairs at my house when I was younger and my father just going, “I pity the judge when you come up in front of them.” So I think it was kind of just presumed that I would do law. And then commerce, I think that was also, they’re just default good things to study, couldn’t go wrong. I actually had this desire to, I had a little bit of an entrepreneurial startup thing in me. Again, I don’t really know where that came from, but there were a few business ideas I had and one of them was that I wanted to do something in makeup and do some sort of makeup artist thing, which was well before any of the makeup influencers that have now become a massive, massive industry. And I remember my mother just saying, well, you need a good backstop if you’re gonna go and do something like that.

Claudia Batten:
So go get a degree and then figure it out from there. I think she was shocked where 4 years into my career at Russell McVay, I did then go, well, there’s my backstop, so I’m off. I don’t think she probably thought I’d take her literally, but yeah.

Paul Spain:
And did you do any kind of little entrepreneurial things or, you know, any jobs during your sort of school and university years?

Claudia Batten:
No, nothing interesting at all. I babysat, which basically fueled my Yves Saint Laurent lipstick obsession. Was about it. No, I really wasn’t. It’s odd. I really wasn’t one of those. I didn’t do Young Enterprise. Yeah, it didn’t seem that interesting to me.

Claudia Batten:
I had friends doing it. I don’t think they were big enough for me. Like, I, yeah. I wanted to do, I definitely wanted to do big things.

Paul Spain:
Do you recall any particular highlights from your time studying that kind of solidified, you know, different thinking for you?

Claudia Batten:
I don’t think there’s any particular thing other than just, I do love to consume knowledge. And I think that studying, and I certainly spent a number of years at university and studied, you know, have a good couple of degrees and a bit to my name. And I don’t think that’s ever left me. Like, I really do just love absorbing knowledge and thinking. Again, loving AI for that because I can get a bunch of, you know, pull a bunch of things together and have it help me analyze it or put something in and get it to give me other sources. And I think that’s probably— there are flickers when you ask that question, but I think that the core piece that I got was I just loved the kind of intellectual pursuit of learning. And I’ve never, that’s never left me. It’s very deep in me.

Paul Spain:
Now, I guess we’re in this world of, you know, where lifelong learning is more encouraged, accepted than ever before. Do you look back on your university education now and think, oh, if I was to, you know, to do it all again, would you take a different path? Is that, or is your, you know, has your thinking changed much on the role of university as a, you know, part of the career and the learning process?

Claudia Batten:
I think that you have to, and I think this is very difficult at that age, but I think what’s really important is for you to understand yourself and what your needs are when you’re that age. It’s still, you’re still in such a formative place and your brain is in such a formative place. And for me, university was an opportunity to learn how to think about things, how to write about things, how to be challenged. You know, I remember being dismissive of somebody who I judged based on how they looked and then was put in a group session with them and just realised how brilliant they were. And so even that on a little level, just to not judge people and just until you, you know, can really have a conversation and get to know who they are and how their brain works. So for me, like when you ask that question, I feel like, oh my gosh, no, don’t take that away from me. Like I really, I actually really, I didn’t love tests. Like I used to have nightmares.

Claudia Batten:
I used to literally wake up in the morning like, oh, I’m late for an exam. You know, I still, I still had that till quite late. Like that took a long time to leave me. But no, I really enjoyed being in university. I think that was right for me. I think there are a lot of people, it’s pressure. A lot of people can’t do that pace. And so that’s probably not gonna be the right thing for them.

Claudia Batten:
And it’s a bit wasteful if that’s not the right thing for you, because it’s a number of years that you could be dedicated to doing something else. So I think it’s about dedicating yourself to the right craft for you. I think it’s so tough. It’s tough at 17 or 18 years old to figure that out. I try and talk to as many young people as I can about that to take the pressure off them, because it’s not going to define who you are at all. So do something you love is my general advice.

Paul Spain:
So having finished up at university, what did it look like getting into the workforce for you?

Claudia Batten:
Well, I loved the opportunity to wear smart clothes. That was fabulous. I was very fortunate. I applied at Russell McVeigh and actually one other law firm to be a summer clerk, and I got accepted by Russell McVeigh, which was very, a very business-focused law firm, so it was an amazing fit for me. And I absolutely, gosh, I just so loved working there. And it was hard, again, it was hard, but just because it’s hard doesn’t mean something can’t be fun. Well, that’s at least what I tell myself on a daily basis. And so I summer clerked for them, and then I got offered a full-time position when I when I graduated, and I started off doing a lot of IP, actually did a lot of like copyright search, very basic stuff, some patent stuff.

Claudia Batten:
And then quite quickly, I think because of my general awareness of technology and my interest in IP, kind of got picked up by what was a very early nascent technology team that was developing. We were the— I was the Y2K year, so I was doing a number of opinions on what was going to happen on the, on the first on the tick over.

Paul Spain:
Shall we explain that for listeners who wouldn’t know what Y2K is? Exactly.

Claudia Batten:
Well, why don’t you? You’re even more techie than me.

Paul Spain:
Well, yeah, leading up to the year 2000, there were significant concerns that the technology that existed at that time was not built to deal with—

Claudia Batten:
It was a date stamp. It was basically a date stamp.

Paul Spain:
Dates flicking over from, you know, 1999 into a new millennium.

Claudia Batten:
It wouldn’t go 2-0. It would go— It would go probably 19:00 versus 2:00.

Paul Spain:
And it was really interesting. I mean, I ended up doing a little Y2K project for a bank in London. But, you know, there was a lot going on around will things work and will they not. And even at that time we had old software that had been built decades before in old languages. And yeah, a lot of money was spent trying to make sure that that things didn’t blow up, that the electricity didn’t turn off around the world on the strike of midnight. But fortunately it didn’t. Fortunately, no. What do you all want? Actually, I’ve never seen a detailed analysis of whether actually all the investment fixed it or whether it was all going to be okay anyway.

Claudia Batten:
Yeah, no, me either, actually. It’s a good question. It’s a great question. There will be people who know, and I know some of the people to ask. So that’s a great follow-up for us both to do. I’m sure you know some folks too. So yeah, that was fabulous. Did some really interesting oil contracts.

Claudia Batten:
There’s nothing like going back to a 1954 contract and going, I wonder what they meant for this to mean in 1990. Yeah. And so I love the academic challenge of that. I love contracts. I’m one of the weird people who loves contracting, papering deals basically. And got to do— I’ve got a fun story actually. I got to do I was given quite a lot of license actually, because I was quite good with people, I think, and loved contracts and negotiating, which clearly held me in good stead in future years. And I was really young and I got to negotiate a contract for one of our clients.

Claudia Batten:
And I remember going in there and I’m, you know, young female with my, I think, older male client and then male client with a male lawyer on the other side. And I was in there just walking through my steps that I’d prepared and made, you know, the various points that we wanted to clarify effectively. And I got to one point and nothing was that particularly outrageous. And I got to one point and the client across the other side of the table just lost his mind and just actually had a full-blown temper tantrum and ended up leaving the room. And I had no idea what to do. So I just sat there quietly because I was like, well, I don’t know what to do in this circumstance. I’m just going to sit here. Well, client came back a little bit sheepish and then I won every single point in that negotiation from that point on.

Claudia Batten:
And I learned this great lesson of just like, just sit there if someone’s having a freakout, and they’ll probably right themselves and you’ll probably get an advantage as a consequence of it. So it was a lot of fun. Again, hard work, but it was a lot of fun. And it was a great— I would highly recommend, you know, Russell McVay do still talk to me even though I left them, which is very kind of them. And they even invite me back to talk about my career, which is very kind of them. And it’s not for everyone what I did. But, you know, I did choose to leave and have loved it since. But I really enjoyed my time as a lawyer, as a baby lawyer, as I like to call it.

Paul Spain:
Now, that example that you just shared, can you kind of map that to sort of future scenarios now where you were in similar situations, similar negotiations where actually because of that real-world example there, which tends to stick a lot more than a theoretical situation, that that helped you out further down the track?

Claudia Batten:
I think it just gives you a lot of confidence. Like for me, going back to the question of would I go to university again, And I think the obvious thing for somebody like me is, or would you start a business up? And it is a tough question, you know, that because now what I know about businesses, you know, I had a great time. But I think that you gain a level of confidence, professional confidence, that from an experience like that, it was very intense. And I’m quite hard to faze in those circumstances as a consequence, because I was so young when I had that experience. I was so like, you know, imposter syndrome, like up the wazoo. Like there was just all, it was all imposter syndrome. And that you can navigate that and come out the other side. I think it gave me a lot of professional confidence and just a knowledge that, and I think with all negotiations, I very just calmly walk through them Because I’m actually like, the point of that story is not actually that I won every point on the back end of that negotiation.

Claudia Batten:
It’s actually that there was nothing controversial in that negotiation. And for some reason, this person lost their mind. And in that moment, and I’m sure it was life pressure, like I’m sure something was going on for them and they got triggered about something. And it was just, you know, I actually don’t think it was anything to do with the negotiation. And so I think it just gives you an ability to be a bit unemotional when you’re in a business setting.

Paul Spain:
And you need to have that resilience, don’t you? Because, yeah, people have things going on in their lives.

Claudia Batten:
Yes.

Paul Spain:
And those things will show up in whatever environment that you’re in, right?

Claudia Batten:
Yeah, I think that’s such an important point. And it’s one that I’m off, I do a lot of mentoring and support, hopefully support a lot of young females, especially founders. Young founders generally. And I think often I get this like, “I don’t understand why this person’s doing X or why they haven’t got back to me.” And I’m always trying to teach the lesson of you don’t, you just don’t know what’s going on for that person. And someone can be rough with you or short with you or difficult with you, all of the things. And I really do try to hold a huge amount of empathy and compassion for people because people have some tough stuff going on in the background that they rightly don’t need to be sharing with us in a business setting. And so, look, if someone’s being a complete dick and trying to run over you, you’ve gotta stand your ground, absolutely. But I do try to lead with compassion for sure.

Paul Spain:
Yeah. Now, 4 years at Russell McVay, walk us through how you got from having your focus on working for Russell McVay And then working through that, actually that season was over and it’s time to move on to a bigger and brighter future.

Claudia Batten:
It’s such a good question because I think that we all seek clarity in decisions like that, particularly big ones. And I don’t think I had any concrete clarity, But I had this sense, and I think I am, I’ve definitely, I am intuitive on the Myers-Briggs. I balance that with a lot of structured thinking and logic and all the rest of it. But I do get the feelings and I know how to think them through. And I just had this sense that I didn’t want to be on this side of the negotiating table. I wanted to be on the other side. I wanted to be doing the deals. And I think it was a number of different, from papering some cool technology things for people to helping negotiate and think through the structure for some people with their businesses, that I just had this compound of fabulous experiences that made me want to be the fabulous one and not the person drafting the contract, as fabulous as I think contract drafting is, and I still do.

Claudia Batten:
And I still say to teams, to the boards I’m on, I say to the teams, you give me a contract, I’m gonna read it. And I’m gonna question you on it. So if you don’t want deep thoughts on a contract, don’t put it in the board papers. So I do still just, I really love, I love the expression of a business arrangement in that language, in that form. For whatever reason. It’s very weird as I say it out loud.

Paul Spain:
Yeah, I mean, these are the things that— it’s these unique things, right, that, you know, become part of our makeup that allow us to be able to, you know, each person to be able to bring something unique to a situation and create something that nobody else could create or see it in a different way.

Claudia Batten:
I think also, actually, I was just processing that. I think it’s how I understand a business. So because that’s my formative experience of here’s a business arrangement or here’s a business, oh, we put it into a contract, it ends up being how I understand a deal better than a PowerPoint, better than a business plan, better than a spreadsheet. That’s actually how I, which is kind of like, and I always think we’ve all got our languages that we understand things through. Some people it’ll be coding, Some people it will be a spreadsheet. So I think that’s just, it’s my love language. It’s my business language.

Paul Spain:
That’s really interesting. That’s fascinating. And I have seen circumstances where, yeah, people are much more interested in the contract than any of the other aspects.

Claudia Batten:
It can get weird.

Paul Spain:
There we go. Yeah, yeah. Now it is demystified.

Claudia Batten:
Yeah, I try not to be too weird about it, for sure.

Paul Spain:
Yeah. So what did you have in your mind? What were you visualizing when you were preparing to exit and you were putting things together in your mind? What was that first kind of picture that you had or the first contract you had or however you visualized?

Claudia Batten:
So I know you’re clearly a pattern recognition person, as am I. That’s why I can see it in you. And you’re trying to see the puzzle pieces pieces of my career coming together. And so that’s a great question, because there are a few things that are going to come together here. So I mentioned that I had a bit of an Yves Saint Laurent lipstick obsession that became a MAC Cosmetics obsession when MAC Cosmetics came to New Zealand. And partially that was also because their website, back in the early days, we had to actually type in the website, kids. Their website was phenomenal. They were one of the people who really got online very, very quickly and just did a phenomenal job.

Claudia Batten:
And so I had this thing of a love of cosmetics generally, but also a real reverence for this, for this brand’s use of technology. And then I got to know the brand more and had a real reverence for the brand. It’s quite an indie brand that came from Canada. There’s a whole backstory to it. So huge interest there. And then you’ve got my interest in the dot-com boom and bust and you’ve got my desire to be a makeup artist floating around in the background and, you know, what I wanted to do. There, all of that actually started to come together. And I thought that I was gonna go to New York and I was gonna get a job at MAC Cosmetics and I was going to redefine the way they sold makeup through, I had this whole system I’d figured out and that’s what I was gonna go to New York and do.

Claudia Batten:
I was gonna go from law to marketing. I was gonna go into the cosmetics industry. I was gonna move from Wellington to New York. None of this makes sense now. This was very pipe dream, but I had this big presentation. I actually, Dawn, knocked and managed to get a number of interviews at Mac, had quite a few conversations with them. 9/11 happened just as I left New Zealand and went to New York, so the city was struggling. No one was really up for taking a lot of risk.

Claudia Batten:
And so despite, I think, doing some quite good networking and having some good ideas, that didn’t happen. And I like to say that technology grabbed me back, ’cause technology always grabs me back. I’ve learned not to resist it now. And I, you know, fully, fully fledged card-carrying nerd, but technology grabbed me and I ended up working for the company that then became massive, which is where all of the entrepreneurial journeys started. But back to your question, there was just this unusual conflux of inputs and inspiration that led me to thinking that New York was where I needed to be for a very long time. Very, very specific purpose.

Paul Spain:
Yes, yes. And so, yeah, walk us through the Massive story.

Claudia Batten:
Yeah.

Paul Spain:
Because this was an incredible, you know, achievement and success, what, you know, was done there over a reasonably short space of time, right? Yeah. And then the acquisition by Microsoft.

Claudia Batten:
Yeah. So it’s an incredibly long and detailed story that I can go into quite a degree of specifics on. So feel— I’ll do the high level and then you can pick up what you want to delve into. But there was a Kiwi there that I met who was working with an Aussie and said, come chat with us. Because I was at this, you know, you move to New York and you think you’re the cat’s meow. You think you’re pretty awesome. You go to New York and you do a bunch of door knocking and it’s winter and it sucks and it’s difficult. And then you start to feel a bit depressed about yourself.

Claudia Batten:
And so anyway, through the whole chatting to the Kiwi network, met this Aussie and he was the head of marketing for this company called Metis Technologies. And I went and chatted with him and we got on and he said, well, I could really use some help. And I said, well, I could just really use something to do. I’m a bit bored and used to working hard. So what do you need done? And so ended up helping them out on various, this, that, and the next thing. And just said, look, I’m just happy to work for free. I’m just, it’s fine. I’m perfectly able to support myself for the time being.

Claudia Batten:
And that turned into a job. And not only did it turn into a job, but actually as I was doing all of this stuff for them, which included rewriting marketing materials, helping them with some of their legal stuff, their HR, like I was pretty capable. I had a pretty wide range. And we would go for these coffees and I was like, what is actually going on here? I was like, this is, it was peer-to-peer network integration software. Like it was, IBM was a major competitor. I was starting to do the math on this thing and I was like, I don’t know, is this gonna work? He’s like, no, I don’t think. So we had these chats like, where’s this all going? And so we had an idea to pivot the business into a testing tool in the video game industry, which is quite the pivot. It’s about as big a pivot as moving from Wellington as a lawyer to going to New York thinking that you could work in the cosmetics industry.

Claudia Batten:
And so we thought this through and figured it out and effectively presented to the investors this idea that there’s no way this was gonna work. We actually felt we could utilize the technology as part of the pivot and move it into this testing tool. We actually got the support of the board to do that. I remembered running, I had to run down every single last investor on the cap table and actually physically find them, which was quite a piece of work to get them to transfer the stock over to a new company. The massive URL was actually in my name. Like I bought it, grabbed it, you know, because we needed it. And, you know, my name’s on the patent. Like it’s all of the really grassrootsy stuff.

Claudia Batten:
It was, it’s all very basic. Back then when you started, it was all very basic. And yeah, so we did that and built this built this testing tool. So it was a hardware, it’s a piece of hardware which I had no, I knew nothing about. I mean, I knew vaguely something about software. I could pretend I knew something about hardware, but I didn’t really. And we went out and we shopped it to the video game publishers and they were like, oh no, we’re not gonna do that. We’re not gonna, the testing piece is a really, really important part of the process.

Claudia Batten:
We can’t rely on it. Hardware, we can’t rely on hardware and software to do that. We need humans to do the testing. And so we’re like, oh.

Paul Spain:
So how far down the track were you yet?

Claudia Batten:
Oh, we had a physical piece of hardware, yeah, yeah, yeah.

Paul Spain:
So you’d spent a long chunk of, or a lot of effort to kind of put that together, even if it happened quite quickly.

Claudia Batten:
Yeah, it happened quite quickly, but we had put quite a bit of effort into it. And, you know, I look back now and I think that we were nuts because even just getting the electrical compliance certification, like I started to look at that and I was like, oh, Oh, this is not gonna be fun. So, you know, I think we got served a bit of a lucky break, to be honest, on that. And anyway, as we got to know, because Australian and a Kiwi, we were, you know, good at chatting. And it was Mitch who came up with the idea. He was just like, we need to advertise, we need to do an advertising network. We were like, oh yeah, that seems like a good idea. That makes sense.

Claudia Batten:
We just struck gold with that idea because it was at the exact time that the male 18 to 34 audience had disappeared off of watching cable network television. They’d stopped buying newspapers a long time ago. They weren’t really consuming magazines. It was really hard to market to them. But they’re a really valuable demographic. And so there was this big kind of, where are the lost boys as they talked about? And we were like, well, we know where they are and we can get you access to them. So it wasn’t straightforward. And again, I could go into endless detail about convincing publishers to put advertising in their video games.

Claudia Batten:
Actually, they were easy to convince ’cause that’s just dollars, but it’s the developers.

Paul Spain:
Money in their pocket.

Claudia Batten:
Yeah, money. And it was the developers though who you had to just be like, well, we’re gonna enhance the game and think how great ads are gonna be ’cause they bring a dynamic element into the game. And they actually worked in the video game. The audience, the players actually loved They loved the ads. They actually did like that there were these ads that were dynamic and back in the day that were dynamic and changing. So yeah, we pivoted into that and got lucky, got really lucky. And there were a number of— I actually did a talk, I think it was at Margo that I did how I learned to be lucky. And I think that obviously you work hard and we all know that you work hard and you create your own luck.

Claudia Batten:
But I do also think you’ve got to get you’ve got to get a little bit lucky, or you’ve certainly got to be clever enough to see where the open doors are and not just sit staring at the closed doors.

Paul Spain:
Well, yeah, there’s, I mean, there’s so many aspects to it, isn’t it? Part of it is the timing. Part of it is what you were hearing through those varying conversations. Part of it was the knowledge that you had to be able to see how you could commercialise the opportunity. And it’s all those things coming together. And then having the spark to really see it and to be able to execute and pull it all off. Easier said than done.

Claudia Batten:
But also, I mean, it’s just, there are some things that you’re just like, well, that’s curious because I mentioned my love of marketing and consumer behavior. Oh, well, thank you. What a gift. This is fun. Like, it did get to a point where watching advertising started to feel like work. But good work, you know, great work.

Paul Spain:
Yeah. Now, I always think the best learnings often come through those tougher times. You’ve just walked us through a couple of pivot scenarios. When you look back on those times where it’s like, oh, actually this maybe isn’t working so well and so on, like how difficult was that for yourself and others within the business? Or did it all just flow naturally?

Claudia Batten:
Oh, it was just so easy.

Paul Spain:
It was all super easy, ’cause I’m sure it wasn’t.

Claudia Batten:
You know, there are so many elements to that. And, you know, I remember vividly one moment where we needed to get another round, a funding round away. And, you know, I say we struck gold, but there’s a big difference between that and investors throwing money at you. And we were really down to the wire on the funding round. And I remember sitting in the office and looking around and going, there are people here with mortgages that they won’t be able to pay their mortgage payment if I can’t get this funding round locked and loaded. You know, there are a lot of tough business things, but thinking that through in your head, that was, there are those moments that you’re just like, this is important. I’m not playing here. I’m certainly playing with people’s lives if I am.

Claudia Batten:
So, you know, there were a ton. Everything’s hard. I think that’s the point. Like, these things are not straight shots and you’ve got to enjoy the challenge and finding the way through. That challenge becomes what I think you become really, really good at, fronting the hard days, dealing with them. I’d like to think that I’m pretty good in a crisis. Like, I, you know, not to jump forward, but, you know, I took on the chair role of Serco basically as the pandemic hit because our, you know, our board chair couldn’t do it. He was not well.

Claudia Batten:
And, you know, I didn’t think I just said, of course, somebody’s got to do it. You’re asking me to do it. Of course I’ll do it. And then you just get in there. And I remember having a moment going, why, why am I not freaking out about this? And I was like, oh, because this is what I do. I do hard things. We were talking about The Hard Thing About Hard Things, Ben Horowitz’s book. And it just— that was like, that was like therapy, that book.

Claudia Batten:
So I think, I think that’s a big piece of it. And the other thing that I’ve gone back to as I’ve become more philosophical later in my later in my life is when I was 16, I had an operation that should have gone— it was early days of laparoscopic, which is keyhole surgery for people who know anything about that. But I was like number 5 or something in Wellington, something like that for this surgery to happen. And it went wrong and they cut a major artery and it was not good. And I think, and because of that, I had to fight back. I had to fight back in my 6th form year. I had to study, like I had a month out because of that. And then I had to catch up on all my exams and had amazing teachers who really, really supported me through that.

Claudia Batten:
But I fought for that. And I think from that, like, A, nothing’s ever gonna be as challenging as that in your life, right? When you’re dealing with something physical and when you’re young, but also like from that, I’m like, oh, well I just work harder and I fight. Like, of course, that’s what I do. That’s the way you get through crisis moments. So I think I just learned that early. And so I have a lot of fight in me.

Paul Spain:
And what did those situations teach you about working with others and the importance of bringing others along on that journey? Because it’s— Yeah, it’s, it’s very much not just going to work if it’s just you that’s fighting, right?

Claudia Batten:
Yeah, yeah, 100%. And it’s a great question. I— you have to work through a team, and that’s about all of you feeling like you can win in the fight. You will typically have some people who can’t step up on the level that you would like them to, or that you are. And again, we’re all different and we’re all at different stages and levels, and we’ve all got different capabilities for all of the various reasons. And I think what it comes down to is figuring out how you optimally can work as a team and what each person in that team can assume in terms of responsibility and wants to assume. And Ultimately, getting alignment around where you’re going is so important. It’s one of those things people say, but I’m just, I’m like a sniffer dog, you know, a truffle dog sniffing for truffles with alignment because making sure you’re completely clear about what direction you’re going and why.

Claudia Batten:
And I think the why is really important. I’ll come back to that. But getting that alignment as a team is really important. And I think also being very, very careful about what expectations you’re putting on people because you’ll fall apart if you’re not aligned and you’ll fall apart if you expect more of people than they’re able to give. And I think there’s something beautiful about figuring out how to work as a team. It’s a very cool thing when it’s happening and you know when it’s not. And it’s a lot of hard work to get that to happen. But yeah, it’s not just one person fighting, but I can put a lot on my shoulders.

Paul Spain:
And so how have you brought alignment within the team? What would have been your approaches over the years that you’ve landed on to help get everybody in the same direction?

Claudia Batten:
I think that I’ll come back to the— I’ll start with the why and then dig around a couple of other things. I’ve always loved the Simon Sinek kind of why. I think hopefully everyone’s seen that, but really understanding what that singular thing is that you’re trying to do. I love a single-minded proposition. I love a real clarity about we are doing this. We know we are winning when we are here. And you can have these terrible strategy days where everyone’s sitting there and navel-gazing and pontificating and what-if-ing. And you can have these great galvanizing strategy days where you’re getting crystal clear on what that why is.

Claudia Batten:
And I remember early on, even with Massive, and this is carried through into every business I’ve worked on myself and that I’ve worked with others on, is what is your thesis about the future and how are you going to win? And I even love adding to that, like, what is it that you see and you believe about the future that other people might not see and might not believe that you’re working towards. And when you get real clarity around that, there’s just this, I don’t know, this magical thing that happens. And from there, you all figure out what your piece of moving towards that is. And more recently, and when I say more recently, it’s probably in the last 10 years that I discovered the OKR framework, objectives and key results. And I think that beautifully, beautifully articulates how to do that well. And I’m quite a purist with OKRs, which drives most people nuts that I work with on them. But there’s a complexity that you work through to get to simplicity with OKRs that I do think codifies that magic starting from our, what is our mission? Like, what are we here to do? What is our thesis? What is our unreasonable thesis about where we’re going to be in the future? And then distilling down from there your objectives, your key results, your initiatives, and then that regular cadence of reviewing them and the flexibility of OKRs where you can change them if you are needing to course correct as you navigate to that future. That’s probably, you know, the biggest piece of this.

Claudia Batten:
And when you truly do that well, And I don’t think the large majority of companies get this. When you truly do this well, down to the receptionist at the front desk understands their part in moving towards that ridiculous view of the future. And I hold that out as the holy grail actually. And that for me is the best, it’s actually the best expression and the best answer to your question. So that’s kind of the why piece in the strategy and then distilling it into the framework to allow everyone to be part of the team. There’ll be other things, but I got so absorbed in my OKRs. It’s just, it was my Beautiful Mind moment.

Paul Spain:
Measure What Matters for those who are wondering why I’m doing it.

Claudia Batten:
Measure What Matters, John Doerr. It’s a class, it’s a brilliant book.

Paul Spain:
The book or the audiobook?

Claudia Batten:
Yeah, yeah, he narrates the, I haven’t listened, I’ve read it a few times, But I think he narrates it and I’m sure he does an outstanding job of that narration.

Paul Spain:
Yeah, it’s really good.

Claudia Batten:
It’s a good one. We’re gonna put that on the list. We’ve got the Hard Things About Hard Things on the list. And I haven’t talked about Thinking Fast and Slow yet, but we will get there. That will come up.

Paul Spain:
So there’s only, you know, we’ve only got limited time.

Claudia Batten:
Is that your shorthand for I’m giving far too long an answer?

Paul Spain:
No, no, it’s not actually. But I’m just thinking—

Claudia Batten:
Where to?

Paul Spain:
Where to? I’m interested in the exit from Massive, which, you know, as is commonly the case, you know, you don’t just sort of drop a business and run, right? So there must be some pretty interesting learnings from from that period of, you know, going through having to negotiate with Microsoft and then a period inside, you know, the beast, a really, really big company that at times has, as every business does, but has had some significant dysfunction inside. So I’m, you know, I’m curious what you would like to or are willing to share.

Claudia Batten:
Great. I don’t want to get myself into too much trouble.

Paul Spain:
Long times past, you won’t get into any trouble.

Claudia Batten:
I’ve still got friends that might have concerns. Look.

Paul Spain:
You don’t have to mention names.

Claudia Batten:
We, there will be names named. Just a good story. No, I’m joking, I’m joking. Look, we successfully, I think, set ourselves up for an exit. Again, I’m gonna call that equal parts luck and equal parts hard work. But we were fortunate with our timing in that business. I’d modeled it out a number of times and I didn’t like where it got to when I modeled it. So when Microsoft bought us, there was quite a bit of a sigh of relief.

Claudia Batten:
But I think you do this as an entrepreneur. I think you wake up some mornings like, yeah, we’re going to smash all our goals. And then other mornings you wake up and you’re like, we’re doomed. This is never going to work. So we got lucky there. And we tried a number of times to have conversations with Microsoft from a venture standpoint, and it kind of never went We weren’t anywhere. And then, and I’ve actually never, I’ve actually never inquired, and I will inquire because I should, what the wake-up moment was. But effectively, again, got lucky because there was a big push to acquire when we were acquired.

Claudia Batten:
There was a general like, oh, acquisitions are a great idea. There’s a lot of good startups out there. I think Microsoft got that bug as well. We made a lot of sense to them ’cause we were an ad network. It was a real compliment with what they were trying to do. Yada, yada, yada. We were kind of on their radar and then got very on their radar. We were lucky that it was a bit frothy at the time and got acquired quite actually, relatively speaking, seamlessly, given how difficult those kinds of, you know, negotiations and exits can be.

Claudia Batten:
It’s funny to me because that part of it is such a blur, because at this stage there’s so much going on. You half think it might happen, you’re half negotiating with other people to hold up the price. And there’s a bunch of things going on. And then suddenly, you know, one day you’re announcing in a conference room that Microsoft’s acquired you and everyone’s clapping and you’re like, hang on, hang on a minute, is this a dream? And it still feels a bit fugue state to me. It still does feel a little bit like it was like a dream moment. And people expect me to have this clarity about that moment.

Paul Spain:
Yeah.

Claudia Batten:
But it’s the end of a process that you’ve done many processes before. You don’t know if it’s gonna be a thing, so you just kind of work through it clinically, I guess. And then it happens. And the weird thing about real success is that it’s almost too intangible to grasp. You almost come back to the mundane as a way of dealing with lifing. Because you’ve just exited to Microsoft. And I didn’t really know what that meant. Like now we all know, we all talk about exits, we all talk about startups, we all talk about this stuff.

Claudia Batten:
But you’ve got to remember this was really early days with this. This is early 2000s. You know, I’m like that old that I remember when Twitter started. You know, it’s just, yeah. So, It was incredible. I then remember, what happens then is actually you then feel ripped off because they’re trying to change everything about your business, which is what acquirers do. So the worst thing was when they tried to swap out our coffee machine, which just should be illegal.

Paul Spain:
What?

Claudia Batten:
And I remember that being like a major issue of like, why are you doing that? Why are you forcing this? Like, this is ridiculous. Like, that it got to that level of little bits and pieces that they were trying to shift about our operations. So it’s made me really conscious now when we are acquiring through various of my businesses, other businesses, to try and keep that culture intact and the importance of that. I think we’ve moved on since then. Again, this is the early frothy days of acquisition, but, you know, we’re probably still learning.

Paul Spain:
Where they’re trying to just Microsoftize everything. So they had a system for how they buy coffee and coffee machines.

Claudia Batten:
Yeah, we had to book out, yeah, book travel and, we had to, you know, put leave requests, like all this dumb stuff that we never worried about because, you know, I guess they wanted us to be a grown-up business and we’re like, but we’re not, we’re a startup.

Paul Spain:
Because how big were you at that point?

Claudia Batten:
We had like 140 people, so decent.

Paul Spain:
And they’re pushing sort of systems on you that are suiting a business with 140,000.

Claudia Batten:
Exactly. So anyway, it’s silly, but you do feel a lot of your freedom and your control has gone. And it’s one of the things that, you know, I love about being in startup world is that you do feel— and I look, I think it’s important for humans actually to feel a bit of that. So I don’t love that oppressive top-down. It’s important. I promote it a lot with my governance hat on. But I think where you can, giving people optionality and letting people be grown-ups is a lot of it. But we had that.

Claudia Batten:
But on the flip side, the promise of Microsoft was incredible. Like, here I am suddenly working for Microsoft. Like, that’s a big deal. And I don’t know that I really realised how big of a deal it was when I was, but you know, you’re part of this big machine. It’s very impressive. They had quite a big vision for where we would go with them, which was quite exciting. Never got anywhere near it, but it was exciting at the time. So trying to figure out how to do that, how to scale on a new level.

Claudia Batten:
You get access that you’d never had before. You’d had to fight as a startup and then suddenly like, And Microsoft’s like, oh yeah, we’ve got, we’ve got that here. You want this? Like, it just, that was, that was fascinating. And it’s comfortable. It’s very, very comfortable working somewhere like Microsoft. Like suddenly you’re working hard, but you’ve got a job and insurance and all of these things that we used to have to, I used to have to figure out what our health insurance was. And suddenly they’re just giving it to me. It was like, oh, that’s nice.

Claudia Batten:
Thank you. And let me tell you, it’s one of the best insurance policies in the U.S., or it certainly was in the U.S. People doing well now too. So that was, it was very different. It was very, very different.

Paul Spain:
How different were your goals? So, you know, you talked about, you know, they acquire you and then they’ve got this exciting vision.

Claudia Batten:
Yeah.

Paul Spain:
How different was that from what you had had before and how, you know, how well did that transition? Come across or not?

Claudia Batten:
I think what you recognize a little slowly and then quite quickly is that they’re thinking here, but they’re pushing the teams to here, right?

Paul Spain:
So, and so, quite much bigger picture.

Claudia Batten:
Yeah, it’s almost like there was a lot of busy work, and it’s not that that was the case, but there’s suddenly a lot of strategy and there’s a lot of overthinking about our China strategy, and there’s a lot of should we, shouldn’t we do that. There was just a lot of slow moving, you know, you’re used to in startups, I call it, you know, throwing stuff against the wall and seeing if it sticks. That’s your methodology, intelligently, and, you know, I’m being a bit blasé, but you’re used to just dipping your toe in the water, seeing what’s going on, and then calibrating off the back of that. And actually that’s become, it’s actually a very scientific process, the experimentation process. It’s become quite a big way that we work in tech. But Microsoft wasn’t working that way. They’re very strategic, very, very smart people. I mean, some of the smartest people I’ve got to work with.

Claudia Batten:
But then your overthinking starts, your paralysis through analysis begins. You’re so big, nobody really wants to stick their neck out and take a massive— so there’s a lot of that going on. And honestly, it was wonderful. They’re very, very smart people. Incredible privilege and honour to work there. But I just ended up feeling bored is really what it was. And so I ended up— I was doing a lot of travel and I just said to them, look, I don’t think I need to be in New York anymore. And so I moved to Boulder, Colorado, which just was just this great— felt a little bit Kiwi-ish inside of the US.

Claudia Batten:
And they were like, we don’t mind where you are as long as you’ve got by a main airport, that’s not— so they were really good about that. And then I just slowly got the itch again to go into startup land. So left Microsoft and my husband jokes I took 2 days off and then started another company, which is pretty right actually. So yeah, it’s interesting how— and this is where Squiggly was born from, my Squiggly philosophy, which is, you know, that you should cultivate, actively cultivate discomfort because that’s where the good stuff happens. It’s interesting how boring I find being comfortable. I, well, yeah, yeah. I like solving problems and if I don’t have problems to solve, it’s, I’m gonna get restless. Restless leg syndrome, restless brain syndrome.

Claudia Batten:
Yeah.

Paul Spain:
And so what did it look like to find and solve the next series of problems?

Claudia Batten:
Yeah, I mean, I’m not gonna say we really wasn’t changing the world with my advertising, my digital advertising. Advertising companies. But crowdsourcing was the big thing. You’ll remember. Big thing. And Jeff Howe, right? He wrote the book Crowdsourcing. I’m pretty sure that’s right. And I had this coffee.

Claudia Batten:
My husband literally said, because I said to him, I’m bored. And he was like, and I’d finished up or I was finishing up. I forget the timing. But he said, you should meet my friend’s husband. I think you guys will get on really well. So I went and met with him, John Windsor, and we met at a coffee shop in Boulder, the Trident Cafe, which is very cool. I don’t know if it’s still around, but it was very cool. And we started talking about crowdsourcing, and then brains just started pinballing.

Claudia Batten:
And I literally said, this is brilliant. We should start a business basically doing advertising through crowdsourcing. This is a genius model. I went home and wrote the business plan. And then we met again and shopped it to a couple of VCs and got extraordinarily lucky and got funded the second VC meeting on this. It was, and look, it’s again, you work hard, you get lucky. He’d had an incredible career, was very, very smart, very strategic, very well regarded. So he had great creds.

Claudia Batten:
And then I was coming in with my experience and the intersection of crowdsourcing advertising just made complete sense. And we had a business plan that was making money pretty quickly. And the VC looked at us and said, somebody’s gonna do this, and if anyone can pull this off, you guys can. And so it was, you know, got in there. So that ruined me because I then decided that all startups from then on would be that way. And they have not been, particularly as a female founder. But that one, that one was incredible. And just, I knew exactly what to do.

Claudia Batten:
Like Victors and Spoils, starting that was just like, for me, was just this painting by numbers thing. ‘Cause I just knew every step of the way what we need. Not suggesting there weren’t hard things, there always are, but it was just very, very clear to me, yeah, how to build that business.

Paul Spain:
And because you were doing something that, I’m picking that there wasn’t really anybody else doing it.

Claudia Batten:
Not when we started.

Paul Spain:
What did that mean for winning the big clients? Because the clients that you brought on board were not just little local firms. I mean, these were the household names, right? Maybe you can tell us the clients that you attracted.

Claudia Batten:
We had Harley-Davidson, we had Coca-Cola, we had Nike, we had Oprah Winfrey. We had— Yeah, no, it was nuts. It was nuts. And it was— they all wanted to experiment. They all really appreciated the idea of having people who were fans and freelancers or creative dabblers. You know, there was a wide range. The story was great. And, you know, one of the things we got for Harley-Davidson literally came from someone who’s like a diehard fan of Harley-Davidson and just the ideation that you get out out of that was just phenomenal and very, very exciting.

Claudia Batten:
And so—

Paul Spain:
Do you remember what that was?

Claudia Batten:
Yeah, I think that was No Cages, but we did a number of campaigns for Harley-Davidson, so I’m forgetting exactly which one.

Paul Spain:
Okay.

Claudia Batten:
Like I got confused, our name Victors and Spoils, we didn’t crowdsource that. Evan came up with that, who’s our head of creative, who’s brilliant. And, but we crowdsourced the logo, which was very, very cool. So—

Paul Spain:
That’s a good example then for your clients, right?

Claudia Batten:
Yeah.

Paul Spain:
You’ve got the—

Claudia Batten:
oh, 100%. We’ve done it. So eating our own dog food. And there’s this other amazing story about this woman who I forget where she was, but just in one of those remote territories in Eastern Europe kind of thing. And she, she had a winning campaign with Coca-Cola and got to put Coca-Cola like on her. You know, it’s just, it’s just cool. They were just real stories, very real stories, and they were easy easy to sell into clients. They loved the breadth of the ideation.

Claudia Batten:
They loved that they were getting unique ideas and they were, it was a cheaper way of operating because we didn’t have a bunch of creatives sitting around that we needed to feed and they’re expensive. So it was amazing, amazing to be in such a creative space. Yeah.

Paul Spain:
Tell us around what that journey with Victor Spores was like. You ultimately exited by selling to an ad agency, but as a business you were really probably quite disruptive to the existing industry. And look, we’ve seen that over the years that, you know, often it’s the disruptors who end up getting acquired by those that they’re working to disrupt.

Claudia Batten:
Yeah, there are a number of, there are a couple of certainly elements of learnings from Victors and Spoils. And one of them was actually, And I loved all of the creative people I worked with at Victors Spoils. It’s not a negative on them, but it was interesting seeing that we were trying to break the model of creative development. But they’d grown up much the same way I grew up, writing contracts a certain way, telling me that you could do law through AI, you know, which I’m a, you know, of course you can and it’s a great idea, but that would be a bit of an existential crisis to me as a lawyer. And so, trying to navigate that level of change with the creatives who were part of our business meant that we actually ended up boxing ourselves in a little bit more than the big, big vision I had for Victors Spoils to start with. Because I saw this mechanised way that you could, as a mom-and-pop shop or a big Nike, you could just go in and go, I want this campaign, and then this like mechanism would kick off and deliver you an ad at the end of it. Like, There was a lot that was gonna be hard about doing that, but that’s kind of what was in my head. And so that became difficult to do.

Claudia Batten:
So you could see that we were getting a bit confined in ourselves in the way advertising is done. And then as another layer on top of that, we started to get confined by the advertising industry. And so I find this fascinating for people who are coming in with startup ideas where they’re like, we’re gonna disrupt blah, blah, ’cause it does make a lot of sense. The way that old industry is doing things is typically really old and inefficient, and there are better ways of doing it, but that doesn’t mean that the incumbents aren’t going to fight you tooth and nail to retain their monopolistic hold over the industry. So we started to find, as we got bigger and bigger and more notoriety, the ad agencies came after us harder. So we would be in these competitive pitches, we would know that our work was outstanding and you’d get this response of like, we didn’t give it to you, we gave it to blah, blah, in this kind of backhand. You knew that the agency monster had grabbed them and told them top down, no, no, no, Victors and Spoils are not getting that piece of work. So we definitely kept coming up with this.

Claudia Batten:
There was like a limit that we could get to in terms of, of being successful in disrupting the ad industry. But there were agencies who wanted to hold themselves out as being innovative and edgy and cool and with it and, you know, all the rest of it. And so Havas Worldwide were one of them. And to their credit, were absolutely trying to play with new models. And so they ended up acquiring us, which just felt like the right thing to do. Because we could see that we were getting to the ceiling, the glass ceiling, basically. And it was just looking very difficult to crack through. So we exited to them.

Claudia Batten:
And I was all in for the next stage with Havas. They’re headquartered in France, and how much would trips to Paris really suck? Not a lot, you know, blah, blah, blah. And then and then suddenly just had this muscle memory of the end of the time with Microsoft. And I realized, no, I don’t, I don’t want to do this. This is, this is going to bore me really quickly. And actually the smart thing to do for everyone is actually for me to jump out now. There’s somebody who could easily come through and do the business development arm of what I did. And we didn’t need the founder piece anymore.

Claudia Batten:
So yeah, I stepped out of there and so, so glad I did. ’cause it just gave me a bit of freedom to then kind of go, you know, who am I? What do I wanna do next? And having that break actually gave me the room to come up with my kind of life/startup philosophy, which is the squiggly life. And that’s just all about life not moving forward in progressive measured steps. There is no linear, and it’s a lot messier, it’s squiggly and we move forwards, we move sideways, and we move backwards. And most of the time it’s sideways and backwards. And I look at the world we’re in now and it’s just, it’s hyper squiggly. It’s the way I’m absorbing, yeah, the AI transformation.

Paul Spain:
Yes, there’s no straight lines.

Claudia Batten:
No, no. And actually the more you dig into science, health, injury recovery, everything, you’ll just start to see it’s not linear, it’s not linear. It’s not, it’s incredible how many times of times people actually say it’s not linear, which really does cause me to question why we think it is linear. Like, it’s so obviously not. But I do deeply believe this is trained into us as young children. And that’s that formative experience that we think it will, because it does when you’re younger. But it’s— that’s, you know, that doesn’t bear out. Yeah.

Paul Spain:
And so, you entered this whole new period, you know, tell us what that’s looked like now for you the last sort of decade, decade and a half.

Claudia Batten:
Yeah.

Paul Spain:
Where you, you know, haven’t been tied down just to, you know, one startup and so on. You’ve really, you know, been involved with and helped lots of organisations at a whole lot of different levels from, you know, small to the biggest.

Claudia Batten:
Yeah. It’s been crazy. I do remember wondering when I left Victors in Sport, I was like, what is the next thing for me? Like, I, in a way, felt like I was outgrowing the chaos of being a startup entrepreneur. I still have such a soft spot for it, but you are dominated by a business like that when you found a business. So, you know, had that curiosity, and kind of met and talked with a lot of people as I was scratching the surface of that question and ended up going and working with NZTE in LA and running North America for New Zealand Trade and Enterprise for 3 years, which I did because they asked me to. And I did because I felt like it was a giveback to New Zealand. And I also did it because I thought that my startup, and this is Pete Crisp and I had conversations about this when I came on board, my way of looking at being scrappy and doing something new and, you know, being part of the US and early OKR thinking before I even understood what the OKRs were, really gave a different way of operating NZTE in that market. And that was kind of the challenge they wanted me to bring.

Claudia Batten:
So that was really amazing and so great to connect with all of these New Zealand companies. And really, from leaving Victors and Spoils to now, I’ve just slowly been consumed by Aotearoa and the business community here, such that 4 and a half years ago, I moved back here in the middle of the pandemic. And I’m now on on 4 boards and, as you say, mentor and have assisted literally countless businesses and like to think, and I think it’s generally understood that I’ve been part of supporting the development of the technology and entrepreneurial ecosystem in New Zealand along with many others, many, many others. But yeah, it’s been incredible. And it’s just, it is phenomenal to stand back and see where we are now in New Zealand. With technology and startups and all of the incredible, phenomenal, you know, Rocket Lab to Halter to OpenStar to Sharesies to like just the names fall out now. And back in the day, there just wasn’t that. And so to have been part of supporting that again, along with many, many other people, it’s just such an honor.

Claudia Batten:
And now that I get to bring this kind of future thinking and disruptive thinking and all of the other curiosities of my brain to the big businesses I’m working with is also phenomenal and a real opportunity to help scale helping humans be humans and do great human work, particularly now that we’ve got robots that can do some of the really really boring mundane stuff. And I hope that is where the story ends with AI and not super intelligence. But there’s a big, there is a big question mark there.

Paul Spain:
Yes, yeah, there certainly is.

Claudia Batten:
Cue the next 3-hour podcast.

Paul Spain:
It’s a big rabbit hole too, to jump down. Now, what would you say, because there’ll be some people listening in from varying parts of the world who who, you know, they were born in New Zealand or grew up in New Zealand, but they’re now sitting somewhere else in the world and they’re probably quite happy in, you know, London, New York, Tokyo, wherever, all of these places around, you know, the world where there are Kiwis and thousands and thousands of them doing amazing things. You know, what’s your encouragement around, you know, like, yeah, you know, getting behind New Zealand, whether it’s, you know, from somewhere else in the world or, you know, what it’s been like for you to move back to New Zealand?

Claudia Batten:
Yeah, it’s, look, it’s a big question. And the first thing I would say is the bulk of those Kiwis you’re referencing are in some way, shape, or form supporting New Zealand business. I certainly I see that on a daily basis. There’s actually a cool WhatsApp group I’m part of called Kiwi— how do you say that? Diaspora. Diaspora, thank you. Which is just incredible. Kiwis kind of everywhere supporting each other, and a lot of that US-focused, but they are all— if you ask any of them for help on anything, they will be right there supporting any business. So there is a massive amount of support that we get already.

Claudia Batten:
There’s a lot of people who come back here regularly and do, you know, short tours of duty as well. So that works, that model works. We’re lucky enough to have Dr. Sean Gawley on our board at Circo, who I conned somehow to join the board, and he’s just been phenomenal. He lives in the US, but is very, very keen to support, you know, the growth of New Zealand business. New Zealand tech businesses. So a lot of that is happening. In terms of doing what I’ve done, there’s an argument on both sides of that.

Claudia Batten:
I miss being part of the really big market, and I think that there is a wisdom and an exposure you get from being in that market that you can bring back to New Zealand when you’re not here full-time. I like to challenge myself and think that I’m getting good access to that, but it’s just not the same. So So there is a trade-off in moving back here. But on the flip side, moving back here has given me connectivity to founders on the ground who sometimes just because I’m here feel closer to me and feel like, you know, they can— I’ve had a bunch of them up to my house. I had a strategy day at my house beginning of this week with one of the companies came up and just took over my house to have this strategy day. There’s pieces like that, that you can do that are just, they’re just different to when you’re offshore. I think both work. I really do think both work.

Claudia Batten:
And I ultimately said there’s a lot of people who are quite happy. If you are quite happy offshore, then stay happy would be my advice. But there’s some benefits to coming back here. Some of them are obvious, and some of them are a bit hidden, and they take a while to to reveal themselves, but it’s been a good move and I’m loving the work I’m doing and I definitely wouldn’t want to move back to the US right now. So I’m quite happy that I’m in New Zealand.

Paul Spain:
Fantastic. Before we wrap up, what can you share about working in, say, on the boards of larger businesses and, how that works or doesn’t work as somebody who’s founded disruptive startups and then you find yourself part of a big business. Might not quite be a Microsoft, but, you know, there’s a very tangible sort of difference between the, you know, the small and fast and the big and slow.

Claudia Batten:
It all goes back to your question about team. And I’m not going to pretend for a second that I wasn’t the most impatient person sitting on these boards to begin with. It was too slow, it wasn’t right, it was why don’t they get it, audit and risk meetings are boring, you know, all of those things as you start out in a governance journey. But you realize quite quickly that you need to learn to influence, and you need to learn to ask great questions that enable the executive team to, to broaden their minds and to think hard of the hard— think about the hard questions themselves, and also equally think about how they’re doing that with their teams. So you’re kind of modeling a behavior that you want them to take back and have cascade through the organisation. Because once that’s happening and you get alignment, to go back to the alignment point, it doesn’t matter the size of the organisation. Any organisation can get itself to move in the right direction. The thing I have a really hard time with is this term called politics.

Claudia Batten:
And I am not going to pretend that I understand it in the slightest. The little I understand of it is that there is this thing called self-interest that often plays through in organisations and people get a bit positional and entrenched in their thinking and hardwired to not move. I find that very, very difficult. I am gonna say though, A, humans are humans and we do, I think, need to have compassion first. So I try to go to, Well, what is it about the culture that’s doing that? Well, what is it about the industry that’s doing that? What is it about our reward structure that’s doing that? So I try to dig under that when I see it happening. But it is the one thing that I’ll get really triggered by is people just wanting to— it’s not even that they want to be, it’s that their orientation is a little immovable. And I do, I can have a bit of a hard time with that. I’m so oriented to change, I am also on the other side and I have to learn to be patient apparently.

Paul Spain:
So one thing that seems to come up time and time again is that within certain organisations, the systems, the reward structures, don’t seem to encourage a kind of longer-term, futurist, strategic, you know, bias for action. All these, all these things that, you know, should be, should be there. And it’s, well, it’s about the next quarter. It’s about the next quarter and the next quarter. And, you know, one, one at a time and, and so on. Have you got any thoughts you can share on that front?

Claudia Batten:
I think this ends up being the board’s job, actually. I think New Zealand’s in a much better place than the US, which is very earnings to earnings. You know, you’re buffered by that. And there are some great examples of companies who are going against that tide. And I think Jeff Bezos did a great job of that at Amazon, actually. But by and large, that is something that I think the board can decide, that we’re going to take the hit of investors being displeased with us today to model out where we’re working to. And I think that, you know, investors are smart people. If you can show what you’re building, and you can show track and you can show that you’re making smart decisions, they will have a degree of patience.

Claudia Batten:
It’s not going to be endless, but they will have— certainly my experience in New Zealand is they will have patience, less so our friends across the pond, but certainly in New Zealand, they will have patience. So I think that as a board, you can buffer that to a degree. The team has to then do the hard work though to show all of those things. So that becomes the team’s job. Yes, we can encourage that. But I think underneath your question is this, and I get very frustrated with meeting culture. There is this rhythm of doing business that is very oriented to just being busy. And I get how hard it is to come out of that trap.

Claudia Batten:
Like it is hard work, undeniably. But I think actually that’s the work that has to happen now because It’s, A, it’s the imperative with the technology shifts we’re seeing, but B, it’s fundamentally mundane for the humans in our businesses. So I’m loving the work that every business I’m involved in is doing in that regard. I get so much inspiration from the young businesses I work with and how they think about it and how they do things differently. I keep saying to them, you are our future, you are the model, like keep pushing on this stuff and trying to learn little bits from them that we can bring into the big businesses. But we’ve got some awesome people in our big businesses. And so in many ways, we also just have to ask them, what do you need so that you can do this, that you can think about the future? And again, there’s a big spotlight on it right now. So I think there’s better work being done now than there has been, to be honest.

Claudia Batten:
’cause the imperative’s quite clear.

Paul Spain:
Any closing tips, advice, things that are part of how you operate that you can share with listeners, some things that they could take on board?

Claudia Batten:
Yeah, look, I think the first one is if you can reduce every meeting that you have by 15% in terms of time, just pull it back by 5 minutes, 7 minutes, 10 minutes, I don’t mind what it is. Grab that back and then invest that time in, you know, working on areas of curiosity for the work you do. I’ve been really enjoying setting 3 hours aside a couple of mornings a week just to play with AI, to be completely honest. And I say play intentionally because I don’t necessarily know what I’m going to find out, but I’m learning so much and I’m expanding my mind so much and I’m asking better questions as a consequence. There’s just no way you won’t grow and be more productive out of doing both of those things. A big piece of advice I’ve given for a long time is be sure that you have maker time as well as doer time in your calendar. And that came from a blog post from forever and ever and ever ago. But I just think that that’s incredibly important to get yourself out of that busy cadence of meeting to meeting exhaustion, basically.

Claudia Batten:
There’s just— your brain cannot do that. It’s irrefutable. Your brain cannot operate that way. So we’re just actually being idiots by allowing that to sustain itself. And I think like finally, and it’s a clear tie with everything and it ties into my AI provocation, but just be curious. You keep on your curious edge. You’ll have a lot more fun. You’ll learn a lot more.

Claudia Batten:
And I think you’ll be a better human and a better worker as a consequence of it. So yeah, that’s a massive— there’s a million things I could do a whole like advice hour with you, but those would be jumping out at me.

Paul Spain:
Fantastic. Well, thank you so much, Claudia.

Claudia Batten:
That’s great.

Paul Spain:
A real privilege to talk with you. And yeah, thanks for sharing your stories and your learnings from along the way.

Claudia Batten:
Well, thank you for capturing it. It’s so important that we talk about our business stories as much as our other stories. So thank you for the work you’re doing.

Paul Spain:
Absolute pleasure. Thank you.

Claudia Batten:
Great.

Paul Spain:
Well, I trust you enjoyed hearing from Claudia Batten. So many insights packed in there. And look, a big thank you to Claudia for joining us on the show and to our show partners, One New Zealand and Gorilla Technology, for their support. Be sure to listen in to our other episodes featuring many of New Zealand’s most successful leaders, including founders such as Sir Peter Beck of Rocket Lab, Brooke Roberts of Sharesies, Sir Rod Drury of Xero, Cecilia Robinson of My Food Bag, Sir Michael Hill, and many more. And if you benefited from this episode, be sure to share it with a friend. And before we go, a quick question: how confident are you that your organisation is appropriately positioned from the perspectives of technology and artificial intelligence enablement and cybersecurity risk reduction? If you’re not as confident as you should be, get in touch with Gorilla Technology today. To learn how a tech or cyber audit could help you. All right, we’ll catch you on the next episode.

Paul Spain:
This is Paul Spain signing out. The New Zealand Business Podcast brought to you by Guerrilla Technology, your strategic and proactive IT partner.

 

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Lachlan Murray – Founder and CEO of Robomate

Posted on 20 Feb 2026 in Featured

Lachlan Murray – Founder and CEO of Robomate

Lachlan Murray, Founder and CEO of Robomate shares his journey building Robomate from a small robotics idea into a nationwide home‑automation leader. Lachlan founded Robomate in 2018 and bootstrapped the company through early setbacks, refining the model through relentless problem‑solving and customer focus. His determination helped Robomate become one of New Zealand’s fastest‑growing companies, ranking 5th in the 2025 Deloitte Fast 50 with 408% revenue growth over 3 years. Lachlan shares insights on scaling up, building resilient teams, and how serving people and discipline are at the heart of Robomate’s success.

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Paul Spain – CEO, Business & Tech Commentator, Futurist

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Paul Spain:
Greetings, I’m your host Paul Spain, futurist and Chief Executive at Guerrilla Technology. I really enjoy seeing and helping individuals and their organizations thrive. The New Zealand Business Podcast is all about this through sharing the stories and insights from our best and brightest.Today on the New Zealand Business Podcast, we’re joined by Lachlan Murray, the Chief Executive and founder at Robomate. Robomate was founded in 2018 and since then has evolved from a small robotics business idea into a national operation supporting robotic lawnmowers, robo vacuums, and broader home automation solutions across New Zealand. Robomate has seen remarkable growth, being recognised as the 5th fastest growing company in New Zealand in the 2025 Deloitte Fast 50, achieving an impressive 408% revenue growth over 3 years a testament to the team’s execution in a rapidly expanding global robotics market. Lachlan’s work also earned him recognition as a finalist for the Young Businessperson of the Year in 2024, underlining the impact he’s already had on New Zealand’s business landscape. Today, you’ll hear how Lachlan navigated the ups and downs of building a business from scratch, how he bootstrapped his way through setbacks and harnessed a customer-focused approach to become a leader in an emerging market.Paul Spain:
He’ll share the insights on growing his team, scaling, and why discipline and solving real problems are at the core of Robomate’s success. The New Zealand Business Podcast is proudly brought to you by One New Zealand and Guerrilla Technology. Now before we jump into the interview, a quick question. How confident are you in your organization’s cybersecurity? A cyberattack costs a typical small or medium organization over $180,000, and I wouldn’t want you to have to deal with that.
So I’m offering New Zealand Business Podcast listeners a free cyber risk review call valued at up to $500. You’ll get a personalized action plan to lower your cyber risk. This is seriously high value and no strings attached. If you’re interested, tap the link inPaul Spain:
the show notes or on the episode page to reserve your session.Paul Spain:
Well, welcome along to the podcast. Great to have you here, Lachlan.Lachlan Murray:
Thank you for having me.Paul Spain:
Oh well, a real, real privilege to have you on the, on the show. Be great to sort of start atPaul Spain:
the beginning, tell us a little bitPaul Spain:
about where you were born, where you grew up, and what that looked like.Lachlan Murray:
So I was born in Wellington, but I started school in Auckland. So I’ve been in Auckland since I was 5, lived most of my life around the North Shore, grew up around some business stuff going on in the family. But yeah, just a kid growing up, going to school, wasn’t great in school, got all right marks, but probably said I was a little bit disruptive or whatever at times. But yeah, nothing too major. Pretty normal.Paul Spain:
Do, do you remember kind of, you know, talking business type stuff around, you know, around the dinner table, or, you know, where, where, where did you get your sort of first insights on, on the business world?

Lachlan Murray:
Definitely. I grew up hearing about the good and the bad of business. Yeah, I think when you’re running a business, you generally talk about the bad more than the good. Yeah, day to day. So I heard lots of the challenges and struggles, and yeah, it didn’t really sell it to me, to be honest.

Paul Spain:
And what sort of field were family involved in, sort of business-wise?

Lachlan Murray:
So they were in like commercial lighting stuff.

Paul Spain:
Yeah, yeah, okay. Okay, so that put you off a little bit, obviously not too badly.

Lachlan Murray:
It did put me off for a fair while. I was determined that I wouldn’t go into business, actually. So after I was out of school, I was looking for something to do for a while. I was determined that I was gonna be a paramedic and started off down that course. And eventually, I guess it’s in the blood, so kept coming back.

Paul Spain:
Yeah, yeah, okay. So after finishing up school, you sort of took a turn in that direction. I think I saw you did some volunteer work volunteer work and whatnot?

Lachlan Murray:
Yeah, so I actually— I’m a celiac, which means I can’t have gluten, and I wasn’t diagnosed at the time. Oh, so I had a whole lot

Paul Spain:
of health— my father has the same.

Lachlan Murray:
Yes, I had a whole lot of health issues and stuff going through school, and so I didn’t even finish school. Hence why I was saying to you before we started, uh, probably the least educated person in New Zealand. But I didn’t finish school. I did eventually get my university entrance. I did a bit of work in the family business for a while just to get a taste for it, but decided that I didn’t really want to pursue business at that point in time. Yeah. And I wanted to do something more, you know, immediately helping people, get completely away from business. And so yeah, I enrolled to study paramedicine at AUT, and before I went and committed to it, I decided to go down the volunteering path, and I absolutely loved it.

Lachlan Murray:
But we don’t treat paramedics in New Zealand particularly well, And I could see the trajectory, you know, of where things would have gone if I’d gone down that path. So it’s super rewarding, super fun. But yeah, it’s a calling, not a career.

Paul Spain:
Yeah. Yeah. How did you kind of make that decision in your head? Was it— did it become reasonably black and white, reasonably simple for you to decide not to pursue further?

Lachlan Murray:
Yes, it was pretty simple. Obviously in the ambulance, when you take people into the hospital, there’s a waiting bay at the ambulance area. And the thing that probably put me off was you could actually see, looking at people’s faces, how far they were through their rotation and their shifts. And so you could actually just see, you know, how much they’re carrying, how much stress and how much burden there was. And so in New Zealand, because it’s going through like a charitable trust with some government funding and stuff like that, it’s, it’s in a pretty tough stage. I mean, You do it because you want to help people, but it’s going to come at a pretty huge cost to you. So I could obviously see that, and I still have a lot of respect for the people that actually can stick through it and do it. But I went through that volunteering phase, working frontline out in Helensville, which got me a taste for it, kind of helped me get some of the adventure out there.

Lachlan Murray:
And it was at that point in time where I started to do some of that, you know, marketing stuff for other companies, essentially like a freelancer with a couple of subcontract people helping me out.

Paul Spain:
Right, so this, this was your, your way to earn, earn some money and I guess lean into areas that you had an interest in, in terms of business and marketing?

Lachlan Murray:
Yeah, exactly. So the fun part of business for me is probably the creativity around marketing and then strategy and trying to understand like the people side of it. So marketing was the easiest to get into at that point in time because I had absolutely no money to do anything. Yeah. So it didn’t require anything, just, you know, a couple of business cards and you walk around and meet some people and see where it leads.

Paul Spain:
Yeah, yeah, yeah. And so how did you, how did you, you know, win some business, find some initial work to do for others?

Lachlan Murray:
I recall just going around door to door, meet a few people, then they introduce you to their friends. I think the cool thing about New Zealand is if you just put yourself out there and, you know, kind of admit that you need help, people are pretty keen to give you a chance. And I obviously was super passionate about what I was doing, so I guess that helped.

Paul Spain:
Yeah.

Paul Spain:
And what age were you at this point?

Lachlan Murray:
I would have been about 20, 21. Yeah.

Paul Spain:
Yeah.

Paul Spain:
Okay.

Paul Spain:
And how was the response? How did it go?

Lachlan Murray:
It was pretty tough. The thing that I found hardest was actually the fact that we’re doing a creative process. So me being me, I put everything into it, and by definition you’re doing this creative process for someone that’s chosen to outsource it, so they don’t necessarily understand what it was. And so at times I felt like I was doing something that was pretty cool, and then it would go through a whole bunch of, you know, revisions, and by the end of it, it’s like, man, it would kind of be like what you do with AI now. It wasn’t a tool back then, but it kind of felt like it was just— and so after a period of time, I was kind of just sick of going through that process. It wasn’t so much around whether the business could work or not, it was just wasn’t quite fulfilling enough for

Paul Spain:
me. And so tell us how Robomate came about.

Lachlan Murray:
So my dad actually had robot lawn mowers in 2008, which is way back before it was really a thing. So that point in time, he had to import them from Italy direct. There was a company called Ambrogio in Italy. At that point in time, they had perimeter wires that you needed to bury around the edge of the lawn. They were pretty basic, really. It would have been 2018 when I was doing this marketing stuff still. That a family friend that also lived near us said, hey, what do you think of those robot lawnmowers? We’re sick of mowing the lawns. Do you reckon they could do our property by now? Their property was really big, really steep, pretty brutal sort of conditions, but kind of thought it’s been another 10 years of development from where they were then, like surely now it’s worth a nudge.

Lachlan Murray:
We really quickly learned at that point in time that they hadn’t really changed much. Since 2008, the fundamentals hadn’t changed. They still needed perimeter wires. So sometimes it would dig up the perimeter wire and cut the cable. Oh boy. And then other times though, it just means that it started to dig a hole. And then if you imagine big thick mud tires on like a truck or something like that, once you’ve done a few rotations in mud, they become like slicks. And so then it’s going around just roughing everything up and making it worse.

Lachlan Murray:
So then next time it goes out, it gets even worse. So there’s so many little cyclic issues that can’t be solved. ’cause it just didn’t have actual awareness of what it was doing at that point. And so I also really quickly figured out though that there were going to be a lot of big changes in the pretty near future and that it wasn’t worth trying to scale a business behind that sort of technology. So after that, we pivoted to doing robot vacuum cleaners. This is still probably 2019, so there was still a very strong stigma around robot vacuum cleaners at that point in time that they would, you know, get stuck under the couch. You’d have to pick them up and put them into each room at a time. They were kind of just gimmicks for geeky people to have because it was cool to have and a bit of fun, but they didn’t really work.

Lachlan Murray:
But at that point in time, things were really just starting to change. There was a company called Neato which was out of the US. Yeah. And they had just put LiDAR on top of the robot. And so the robot was starting to map the house, which meant that it was actually going backwards and forwards and it was smart. And that actually, that actually put proper suction on the vacuum. So the prior ones, because they weren’t really a proper serious thing, didn’t have much suction. Yep.

Lachlan Murray:
So as soon as they put the navigation on the robot vacuum, then it was worth making it actually clean properly. And then as soon as it starts to get to that stage, then the industry starts to grow really rapidly and the investment and stuff starts to hit some sort of exponential growth. So we got into that in 2019, and then very shortly after that COVID hit.

Paul Spain:
Okay, so you’d— and what did you have at that point in terms of a public presence, retail presence, and so on?

Lachlan Murray:
We had nothing at that point.

Paul Spain:
Right.

Lachlan Murray:
So one of the things, the original plan was actually to be more of a standard distribution company. Right. So we would buy the product, act like an importer, and then go through other channels. The reason why we didn’t do it in the end was with something like a robot vacuum or a robot lawnmower or something like that, it’s quite a complicated product. And so if you’re looking at the channel partners that you have out there, they’re taking a pretty significant cut of the total revenue, except they’re not really equipped to promote it or actually to do much of value to help build the segment, if that makes sense. So what the realization was in these early phases, we went to a whole lot of like home shows and stuff like that. And we discovered that all of the questions that people had about the product were about whether it would actually work, dispelling some of the old myths. But actually people understood that if it did work, they would want it.

Paul Spain:
So I mean, at this stage, what sort of level of overheads did you have and what did your sales look

Lachlan Murray:
like? Not much, not many overheads. I was working out of my parents’ house.

Paul Spain:
Yeah.

Lachlan Murray:
A few boxes in the corner of the garage, going to the home shows, which would just pay for themselves. We had a website which was selling enough, kind of just enough to, you know, keep living.

Paul Spain:
Right, so you were almost kind of hand to mouth as it were at that point?

Lachlan Murray:
Oh, 100%. Yeah.

Paul Spain:
100%.

Lachlan Murray:
Wow.

Paul Spain:
Yeah. And so what did COVID bring?

Lachlan Murray:
COVID would have been good for us if it wasn’t for the component shortages. So there was actually a huge demand from like an e-commerce perspective for all of these things. But we had just gone away from the robot lawnmowers into the Neato robot vacuums. At the same point, just before COVID a giant German multinational bought Neato. And there were a few issues trying to integrate like a German industrial company with Silicon Valley. You know, I witnessed it firsthand in the office seeing this industrialist guy, the new CEO, trying to talk to some Californian software developers in shorts and chandals. Yeah. And there was obviously like a little bit of a mismatch and I could sense it then.

Lachlan Murray:
But when COVID came, they were in the middle of launching a new product range and that product range ended up being 18 months late. You could probably blame it partly to component shortages, but it was also partly, I think, from a cultural mismatch internally there where they probably got some of their engineers offside with the company vision. Yeah. And so the new product came out 18 months late and it wasn’t actually much of a step forward at all. And the whole thing kind of just fizzled. Nothing really happened. It kind of just fizzled out. But Nito went from being this amazing up-and-coming company that had just been acquired to gone within like 2 years.

Paul Spain:
So that’s quite a challenge. So did you sort of recognize what was going on and managed to, you know, find some other, other brands and some, you know, some other options, you know, quite quickly?

Lachlan Murray:
For a while, the company was essentially completely gone, and I was, I was pretty defeated, to be honest with you. I was starting to sharpen up my own CV, just about to consider, you know, applying for more jobs and stuff like that. But I decided to just give it one more nudge because what I said earlier about the issues with the channels and the fact that no one was actually trying to drive the segment was still a problem that needed to be solved. But I had just lost all of the capital that we had started to started to slowly build in this scenario. So we had absolutely nothing left. So what we actually did was I—

Paul Spain:
and who was working in the business at that point?

Lachlan Murray:
So I had some help from my dad initially. In all of this, they moved to Wellington. I was on my own up here now trying to figure out what I wanted to do, but I knew the problem was big and I knew that the opportunity was coming. I was also aware it was slightly too early But I couldn’t face going through and applying for jobs and all of that. I thought I just should give it one more try. And so what happened was I went and spoke to a friend of mine, a girl called Louisa, who was working in corporate law at the time. And I knew that she was burnt out with that and wanted to try something else. I didn’t have it in me to do it completely on my own again, I don’t think.

Lachlan Murray:
I just needed— it was more for a bit of support. To do something fun together. Yeah. But we got a friend of mine, let us set up camp in the corner of his office. And this time around, we decided to be like a retail channel for robot vacuums. And so at this point, there are a few brands that were starting to go into, you know, Noel Leeming’s, Harvey Norman’s, JB Hi-Fi, all of the big

Paul Spain:
guys. Sure.

Lachlan Murray:
So we went to these people and said, hey, look, we want to be one of your channel partners. Our strategy was to come into the market, and we decided that we were going to make videos explaining all of the answers to the questions that we had at the home shows. So rather than trying to sell stuff to people, we were taking the more, you know, like geeky approach of explaining how it works. And rather than saying like, it can suck up pet hair, trust me, we would make a video showing it. Doing that in a real life scenario. And so we went and we got all of the big brands at that point in time onto one website. So it was almost more like a review website for robot vacuums with videos filmed on an iPhone that I’d financed.

Paul Spain:
Okay, wow.

Lachlan Murray:
We were determined to be a place where you could, A, get advice properly to figure out which one was going to be best for you And then we were going to be end-to-end partners with the customer right through the journey. We decided that we were going to try and give people proper tech support. So rather than following fully through a script, we would actually just know the product well enough, get to the heart of the issue and get it solved relatively quickly. So that was probably the biggest value proposition that we offered to the customers. And I guess it worked.

Paul Spain:
Yeah, yeah, absolutely. Gotcha. So when you started effectively retailing the robotic vacuums, when were we talking that that happened? What time?

Lachlan Murray:
This would have been probably 2021 at this point. Yeah. Okay.

Paul Spain:
Yeah. So not that long ago.

Lachlan Murray:
It feels a long time ago. Yeah.

Paul Spain:
Yeah. Maybe it’s sort of 4 to 5 years ago, right? Yeah. And so then how did you evolve from a retail standpoint during that period?

Lachlan Murray:
So right back when we gave up on the robot mowers, we sat down and we was literally on a piece of paper, drew what we thought someone should make and it had a few requirements that it needed to tick before we’d want to do it in New Zealand. And the requirements were it needed to be wireless, It needed to be four-wheel drive, it needed to have a low center of gravity, and it needed to be powerful enough to cut through kāikaea. So pretty basic, pretty simple. The drawing that we drew didn’t look like the thing that we found in the end, but it ticked the boxes.

Paul Spain:
It did the job. Yeah,

Lachlan Murray:
yeah, yeah. So Mammotion is a split-off company from DJI, the drone company. Okay. And they came in, rather than making iterative changes on a previous generation, when they launched into the market, it was completely and utterly different to what anyone else had done. And so the decision to go with them was just because they were the only ones that ticked all of those boxes at that point in time.

Paul Spain:
You know, what were the things that sort of stood out to you around, you know, how they were going about it and what did that trigger for you?

Lachlan Murray:
So the funny thing was we had actually been trying to contact them for a while. Yeah. And they were growing real fast, probably in that crazy startup phase, and we never heard back. But through the robot vacuum journey, our YouTube channel had got a little bit of traction, and one of their social media people reached out to us and asked like, hey, would you be interested in doing a review video on this product? I had said to them, I’ll do this, But if it is good, we would want to talk about the business side as well because, you know. And so we got the sample and as soon as I got it out of the box, I took it out to the property where we first, that first got me into this whole journey and set it up and it just worked. And so the app was pretty ugly at that point in time. There were a few little things that were like, not great, but the fact that it could do it when nothing else could, like within about 10 minutes, I just knew that this thing is pretty insane.

Paul Spain:
Wow, wow. Did that give you a sort of an immediate clarity around, hey, this is where we can go with the business with a product like this? How long did it, you know, take you to work around, you know, what did you need to do in terms of, you know, getting distribution and, you know, the other bits and pieces and, you know, maybe refreshing your, your business strategy?

Lachlan Murray:
I already had the plan of what we were gonna do. I was waiting for the product. Gotcha. So as soon as we saw it, I was like, okay, we’re on here if we can, you know, get this across the line. There were a lot of other companies that had been in discussions with them and some of them were pretty big companies that people would know and they were a lot further down the discussion path. But we kind of got in and by explaining around some of the channel struggles and stuff that we had, and then also the fact that we had this super strong customer-centric mindset and we weren’t a typical distribution company with, you know, dozens of other brands. It kind of just resonated with them. So we had the— while I was making the review video, I started talking to the sales guy at Mammotion, and had a discussion.

Lachlan Murray:
He— I, I don’t know, I think it just clicked. We got along well right from the beginning. He liked our ideas. And so about 2 weeks later, we had an agreement signed. And yeah, one of the clauses in that distribution agreement was that we had to place an order for a full container load within 7 days of signing. And, uh, so I didn’t have the money.

Paul Spain:
How, how much are you talking for a container load of these these things at that point. We’re talking tens of thousands, hundreds of thousands. Hundreds?

Lachlan Murray:
Yeah. And it may as well have been a billion, like, to me at that point in time. It was a real chaotic period of time there where I had this thing, the business was growing. It was always two steps forward, one and a half steps back. We were a real small fish playing against, you know, in a very big pond. It was really hard. So things were all right, but it was very slow. And then when we got this, I realized that it was going to be big immediately.

Lachlan Murray:
So I was running around trying to find investment. Obviously, not other people don’t necessarily see the full opportunity at that point. I would have secured the investment, but actually I ended up speaking to a friend and he said, have you talked to BNZ? And I hadn’t even considered it. ’cause banks just don’t fund this sort of thing. It’s kind of crazy. But the way that it worked in the end was that we signed the distribution agreement on a Friday. We launched the pre-orders on our website on that Friday. We launched our review video on that Friday.

Lachlan Murray:
We emailed our database on that Friday. And then I had a meeting with Vivek from the BNZ in the afternoon. So all of this all in one day. And so our 7-day timer started ticking. And over the weekend, because we had built great trust with a lot of people, by Monday or Tuesday, we had pre-sold like 40-something units. We were taking deposits. And I want to put this out there is that we kept them all in a separate account. I did not want to get on the news for that sort of thing.

Lachlan Murray:
So we kept people’s money fully secure the whole way through. Yeah, we had the meeting on, I think it was Tuesday, with Vivek to follow up. And by that point in time, we obviously only have like 3 days left, which for a bank to get the funding across the line is pretty insane. But they pulled, you know, a rabbit out for us. They got us funding in the form of an unsecured overdraft, which was enough to get the payment for the container. And so from that point on, the people’s deposits were safe. Yeah, they were always safe though in the trust account, but by that point they actually— we owned the unit to give to them, so everything was safe. And we got the container across, and then for the next like 18 months, the demand was just so big for it that we struggled to keep up.

Lachlan Murray:
When we got that all signed, we still actually only had a team of 3, so me and 2 others. Wow. And Very quickly, again, leaning on a friend in a dire situation, got another friend, Dan, on board. And so it was a team of 4, except things just went ridiculously fast. And we’re doing this all with this bootstrap mentality, which means that the sales always ahead of the resource. It’s kind of like the cart leading the horse. And so it was growing faster then we could actually continue to grow the business behind it. And it’s also in a new industry, so we couldn’t go and hire a resource that knew what they’re doing.

Lachlan Murray:
So every time we brought someone on, it was from a standing start. So we’re trying to run the business, grow the business, and then train people. And so sometimes at points in time, it was, it was pretty wild. We would hire someone, train them for 2 months, and then Next month, I’d be training someone new. And it was just this crazy thing. But we got super lucky in the types of people that we attracted. A lot of our first staff that are still with us today were customers in the first place. And so they were kind of on board as a passion journey.

Lachlan Murray:
And they already understood the product. So there’s been a huge amount of— we’ll call it pain suffered by a lot of people in the name of getting Robomate where it is now.

Paul Spain:
Did you actually kind of do your recruiting through your customer email list? How did, how did, how did that happen that you ended up having, you know, customers come on to your, your staff?

Lachlan Murray:
We never did outward recruiting in that sense. We were getting inundated in every single way, but one of the things we had a lot of people writing like, hey, this is the coolest thing I’ve ever had. My wife is saying that I’m spending all my time on it, I should probably get paid for it. So we had quite a few people like that. And yeah, we just picked the people that resonated with us and obviously as a customer as well, they understood the values and stuff that we’re trying to get. So that resonated as well as the tech and the combination, I don’t know, just attracts like-minded people, I guess.

Paul Spain:
Yeah, and you know, how did you kind of shape the business? You know, those early stages, you know, you’re hiring people quite quickly, you’ve got, you know, all the areas of business that you need to stay on top of and you’re still reasonably new at it. So were you kind of hiring people into the finance and HR and operations type roles or how much were you doing of these things? How did that play?

Lachlan Murray:
I was doing a lot myself with the help of others of course, but it really felt like a whole bunch of people pulling together and a whole lot of people doing a lot of different things. And it was just like a, like a working bee that lasted a long time. Yeah. And it wasn’t until things started to like stabilize that we actually got those specialized functions covered. I was fortunate through the whole period to have a good accountant. He was right, we’re essentially one of his clients for his tiny little practice originally, but then he sold the practice and kept us on as his only one. Oh, fantastic. So throughout this entire period of time, because it’s It was still bootstrapping hard, I think.

Lachlan Murray:
Our cash flow cycles were less than a month. So he was doing cash flows every single day. So I had experience in the finance department, and we had experience in lots of things. As things have started to settle, then the structure’s been put in almost retrospectively. It’s not the way that I’d advise anyone to do it, but it was kind of just needs must.

Paul Spain:
Yeah. At what point would you say things started sort of, stabilizing?

Lachlan Murray:
Probably 2024, but it’s always a work in progress. Things are pretty good right now, but we’ve still got a business that’s still growing rapidly. There’s still no one else out there that we can hire on board that’s qualified. And on top of all of this, it’s super seasonal. And so like one day the sun will come out and the grass will grow and all of the leads and stuff we’ve been talking to for the last few months all buy on the same day. And so yeah, it’s not, it’s getting easier and the problems are changing and things are getting more stable, but it’s definitely not easy.

Paul Spain:
Yeah, you know, tell us a little bit about how the business sort of looks at that point, you know, 2024, you know, compared to prior in terms of, you know, what, what was the shape of the business? Who did you have?

Lachlan Murray:
So we went from working out the back of our Newmarket store, which opposite the Westfield, and just a little tiny store on Broadway. We went from working out the back there with 3 people, and within 6 months the store was slowly getting smaller because we were pushing the shelving up the, the back wall shelving further and further forward until it was a tiny little hole in the wall and the rest of it was office space. Okay. So we had them click and collecting from our store, and there are periods of time where we couldn’t see each other because there’s just walls of robot boxes in our office. So we went from that, and then we— it was all growing so fast that it got to a point where the office itself was one of our constraining factors. So then in the middle of our busiest period of all, we then had to move office. But then that meant we could at least start hiring again and keep growing. We had actually reduced like our marketing spends and stuff like that to try and slow things down But because we had a pretty cool product that was super unique and we were bringing the customer service and building relationships and stuff with people, people telling their friends, so it wasn’t actually really helping us.

Lachlan Murray:
So it just kept growing regardless of what we wanted to do at that point in time. And we’ve kind of just been swept along with it. And so we’re trying to get all of those structures and stuff in place and it’s looking much more like a normal company now. But for a long period it wasn’t, it was just wild.

Paul Spain:
Yeah. Now you’ve got some presence across the country. When did you start building that out?

Lachlan Murray:
That started pretty soon after we took on Mammotion and a lot of our earliest people were the customers that I mentioned earlier. So our strategy there was to get, you know, just get a man in a van that can do most of the functions. So it’s almost more like a little tradie model where they’re not really salespeople, but they can turn up and show you the robot working at the house. But then the same person can help you do basic stuff, can help you get set up, all of that sort of stuff. So they’re just our person on the ground, almost like its own little small business in a way. So that started pretty soon after, and then I’d struggle to tell you at what point in time we had what, but now we’ve got up to about 15 vans around the country.

Paul Spain:
You don’t have to have a massive amount of, you know, business in one area for that to be viable? Or have you got a sort of a formula for, okay, we’ve got this much business, it makes sense? Or if you’ve got someone who’s knocking on your door saying, hey, I want to represent you in Waikikamukau, that there’s, you know, some way of figuring that out?

Lachlan Murray:
Initially it was gut feel. And then obviously now we’ve got some data based on what people are buying without representation there of what areas we should be servicing. And then we also have pretty good understandings just based on population size and demographics and stuff like that, what’s gonna work. So it’s not that hard to predict. There’s obviously lots of aspects to it, like not just the demographic and the type of people and the types of properties that they’ve got there, but also who you manage to secure in that region and whether they’re gonna be stronger technically or sales or all of those sorts of things. So there’s lots and lots of factors, But generally speaking, in the beginning it was a gut feel and based on who we found. And then now over time it’s becoming more data-led, which is probably the way it has to be.

Paul Spain:
Yeah, yeah. It sounds like they’re both sales and technical, but you don’t actually have a storefront, right, as such in the different areas?

Lachlan Murray:
No, that’s right. So most of the time they’re going to customers’ houses and essentially someone, Sees an ad online, they have interest, they— we contact them, make a booking. One of our guys goes out there, essentially just does a demo. It’s not really a sales process.

Paul Spain:
They can get the mower around. Consultation where you can help them understand what would be the right technology to suit their requirements.

Lachlan Murray:
Yep. So they can actually set the mower up fast enough that they can cut the customer’s lawn while just having a chat about everything. And then most of the time there isn’t actually much of a sales process involved. Like, they’ve got you out there because they want it. Yes. And they just want to see that it’s working. Yeah. And so they go out there and do that, and then they also know that if they do decide to buy and go ahead, that that person is there if they ever get completely stuck.

Lachlan Murray:
With the growing challenges and stuff like that, and the people that are out on the road all the time, we would do like a first tier of tech support via the phone. And then if we can’t solve those issues, then there’s other options like sending them back. But as each region starts to mature in its own right, then we’ve started opening up physical stores with their own workshops off the back and then splitting out those different functions afterwards. So that’s the strategy.

Paul Spain:
Yeah, that’s really impressive. And so now when you look at what you’ve got around of the country. How many, you know, what, what areas are you kind of touching?

Lachlan Murray:
We’re in Northland, Auckland, Waikato, Bay of Plenty, Central Waikato, so like Taupo, Rotorua, Hawke’s Bay, Wellington, Wairarapa, Christchurch. So we’re still missing a few spots, but, uh, we should have it all covered pretty soon.

Paul Spain:
Wow, wow. We’ve been talking around the lawn mowing side. At one stage you were doing the robot sort of action for swimming pools and of course the in-home vacuums as well.

Lachlan Murray:
So we’re still doing the pool cleaners, we’re still doing the vacuums. These industries are a little bit more— we as a company are not wanting to be like the robot mowing people. It’s just that robot mowing is probably the biggest problem in New Zealand. And it’s the thing that’s seen the biggest change at the moment. Our focus as a company is on being the robotics people. And then I almost see us more as being like a tour guide into the technology for people that don’t understand the technology. So we break it down, make it easy to understand, and then we take them along the journey. And so we find the best products and then bring it for them.

Lachlan Murray:
So we’re not trying to find every robotic product that’s out there. There’s so many things, but we’re trying to make sure that it is actually like fit for purpose and does the job.

Paul Spain:
Right, so no humanoid robots just yet, but that might be coming up in the future?

Lachlan Murray:
Nah, and I like to test these sorts of things and play with them, but I’m not out there to try and sell stuff to people that’s not actually gonna help them, so.

Paul Spain:
Yeah, okay, now to the Deloitte Fast 50 Index, you’ve landed at position number 5 there, 408% revenue growth. You know, when you think about your journey, you know, what’s been the key to being able to get to this point where you’re able to grow and to scale so quickly?

Lachlan Murray:
There are quite a few different factors. The number one would be timing in the sense that, so the time has been right for the technology to shift. In our case, it was because we waited until it was right. The second, I think I would say is, We have a really clear problem that we’re solving, so we’re actually helping people do something. So a lot of businesses will have the challenge where trying to actually get the sale is the challenge. So they got a cool idea, but then they’ve got to try and convince someone that they need it, whereas we’re out there selling something that people are already aware that they need. So therefore, like, most of our effort doesn’t need to be on selling the product or even marketing the product. It’s not at all about that.

Lachlan Murray:
It’s all about like service, customer service, helping people get on board so that they have good experiences with it. And then because it’s such an exciting product, they naturally go and tell all their friends. And you go and buy a robot and then you have a barbecue next week and then happen to have it going out past it. So our whole philosophy is about like actually about the people. We’re there to serve the people and help them have a good relationship with their robot. And if we can do that, we don’t really have to do much else because it kind of just sells itself and spreads organically.

Paul Spain:
Yeah. Why now for you entering, you know, entering the Deloitte sort of Fast 50?

Lachlan Murray:
There are a few things. Number one, partner at BNZ being a sponsor of it was pushing us to do it.

Paul Spain:
Yeah.

Lachlan Murray:
So that’s number one. And number 2, I think when you’re building a business and you’re in startup phase, you’re a little bit paranoid about people knowing what you’re doing. You kind of want to build your moat before you get your name out there too much. You want to have as much success as possible without getting too much attention. And so we finally got to the position now where I feel like we’re pretty mature and happy to just start talking about it.

Paul Spain:
Yeah, great.

Paul Spain:
Now when you look at other, other markets around the world, and often with startups you know, there’s guidance of, hey, you need to be global from day one and so on. You know, we’re used to hearing this, you know, this sort of advice. Now, do you look out beyond New Zealand and see some opportunities?

Lachlan Murray:
Yeah, no, we have got big plans. We don’t rely on any like sorts of tricks or anything like that. A lot of companies, Kiwi companies go abroad and then struggle, whereas like we’re just, doing pretty simple things that will resonate. It doesn’t really matter what language you speak or what culture you’ve got, it’s going to resonate everywhere. We’re just people out there just trying to help people use tech. And so there is a big gap in other places as well, and we’ve gone through the hard yards to learn how to do it really well, and we’ve built a lot of good relationships with, you know, the right people in the industry. So there’s a lot of opportunity out there, but trying to scale it all a little bit more methodically and smoothly this time around.

Paul Spain:
Yeah, you’ve really bootstrapped and you’ve earned the revenue you’ve needed to expand and grow in the past. Is that something you think might need to change if you’re going out beyond New Zealand shores?

Lachlan Murray:
It’s interesting, but it seems like we won’t actually need to burn too much cash to get where we need to go. I think if you’re starting from a cold start, Yeah, it would need big buckets of cash. But now that we’ve got a lot of infrastructure and know-how in place, we should be able to get through pretty smoothly. The intention is to continue to try and bootstrap it as much as we can. We’ve got a little bit more in the boot now, so hopefully it goes well.

Paul Spain:
Yeah, yeah. Oh, that’s really exciting. You know, we’ve touched on a few places, some of the harder pieces, but it is often those, you know, those toughest kind of periods in a business where you really learn learn the most. When you look back, are there any other sort of learning points or challenging periods that have hit you along the way that might be interesting to delve into?

Lachlan Murray:
I think it’s been incredibly hard at most parts of the journey. It’s easing off a little bit in the last 12 months. But when you’re really small, you have certain problems and then the growing pains. The hardest thing for me is how quickly I personally have been forced to grow. When you’re running a small team of 3 people, you can kind of just be mates. You’re hanging out doing stuff, it’s cool. And then as the company’s grown, my relationships with people have to change slightly. I have to be a little bit more serious.

Lachlan Murray:
And then, you know, just the structure and discipline and stuff getting built into that. It was almost like monthly at times felt like, you know, here’s another growth curve, here’s another growth curve. I personally have gone from the point where like I would be super stressed about everything and I almost feel like I reached the bottom in terms of stress. And so now I’m getting to a stage where I’m building a little bit of confidence, I guess it is, or confidence that I’ve kind of survived going to the bottom in terms of stress levels and struggle, and that, you know, whatever gets thrown at me now, we’ve achieved something pretty cool. And we’ve got a lot of skills and stuff now that we didn’t used to have, so feel a lot more relaxed about it all.

Paul Spain:
Yeah, well, you’ve got a lot of experience under your belt now, right?

Lachlan Murray:
Yeah, pretty great for my

Paul Spain:
age. What have you leaned into in terms of, you know, your own, your own development for for help? Has that been individual people? Has it been books or courses or just studying and learning the things you need to learn as you go?

Lachlan Murray:
Pretty much just studying and learning as we go. I have some great people to help me. We tried having formal advisory and stuff like that, and we really struggled with it because things would change so much that trying to keep the advisors up to date was hard. But with single issues and stuff like that, Once you’ve done it once, the next time is a little bit easier. But with Google out there, lots of people able to help you. Like they said at the Fast50 event the other night, the cool thing about New Zealand is pretty much anyone’s just a phone call away. And most people will take it and make the time to meet you. It doesn’t matter if they’re like a billionaire or whoever they are, they’ll make the time.

Lachlan Murray:
Like a lecturer or something like that, most people will meet you and have a chat. That’s great.

Paul Spain:
If we were to be chatting again and it was 10, 15 years down

Lachlan Murray:
the

Paul Spain:
track, what do you imagine business might look like in that sort of period of time? Can you imagine that far out?

Lachlan Murray:
I always joke that robo years are like dog years. So 10 or 15 years may as well be like a century at that point. I can’t even predict what the product would look like exactly., but I can predict that, like, personal building relationships with customers, looking after people, caring about people, all of that sort of stuff is always going to be relevant. And the further the tech gets developed, the more important that that becomes. So our company philosophy is just serve the best tech that gets there to help people, and then try and hold on to that sort of stuff as we grow.

Paul Spain:
Yeah, that’s great. Anything else that, uh, that you wanted to add, or some— any closing, uh, Advice for, for listeners, Lachlan, from your journey?

Lachlan Murray:
Advice? I don’t know how I’ve ended up in a position to give advice, but I think that it’s not necessarily about having good ideas or anything like that. It’s about identifying a problem that you want to solve and then understanding your own personal strengths and your personal weaknesses, focusing on the weaknesses, not the strengths, which is the temptation. And then what will get you there in the end is actually discipline. There’s no, no substitute for discipline. And I was talking to another guy who’s at the other end of his career and much more successful the other day, and he said that he picks the people that he invests in based on who he thinks will be able to suffer the most. And so I see some of those courses and stuff going around online about, you know, e-commerce courses and all of that sort of stuff. Like, e-commerce is just business. You’ve got to really want it, and you’ve got to have a real reason for doing it because The money and stuff won’t keep you going once it gets hard.

Paul Spain:
Yeah.

Paul Spain:
And what are some of the disciplines that you’ve put into place to be able to succeed?

Lachlan Murray:
It’s been forced on me once it’s grown. The discipline in the beginning was just literally just turning up. And the point in time when no one’s aware of what you’re doing and you could just give up and go and do something else. It’s just turning up and then being, a little bit mean with yourself and your time, not giving yourself too many excuses. So at the start of the day, this is what I’m going to achieve today, writing it down, crossing it off, don’t go home until it’s done. And just being a little bit like holding yourself accountable. There’s no real secret to it, I don’t think.

Paul Spain:
Well, thanks very much for joining us on the podcast. Really, really insightful and appreciate your time, Lachlan.

Lachlan Murray:
Thank you so much for having me.

Paul Spain:
Well, all the best for what’s next with Robomate. And yeah, we’ll look forward to following

Lachlan Murray:
the journey as you progress forward. Thank you so much.

Paul Spain:
Yep. All the best. I trust you’ve enjoyed listening and learning from Lachlan Murray’s story. The New Zealand Business Podcast, of course, 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 successful leaders, including founders such as Sir Rod Drury of Xero, Cecilia and James Robinson of MyFoodBag, Sir Peter Beck of Rocket Lab, Brooke Roberts of Sharesies, Sir Michael Hill, and many, many more. And because a rising tide lifts all boats, be sure to contribute to lifting New Zealand’s success by sharing a favourite New Zealand Business Podcast episode with a friend. Thanks for listening in.

Paul Spain:
This is Paul Spain signing out. I’ll catch you on the next episode. Oh, and a quick reminder before we go. If you haven’t already, grab your cyber risk reduction review session valued up to $500. You can find details for that in the show notes and on the New Zealand Business Podcast website. We’ll catch you soon.

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Bowen Pan – Tech Leader, Advisor and Facebook Marketplace Pioneer

Posted on 10 Jan 2026 in Featured, Podcast

Bowen Pan – Tech Leader, Advisor and Facebook Marketplace Pioneer

In this episode, Paul Spain sits down with Bowen Pan, a technology leader, advisor and investor. Bowen shares about his family’s early immigrant experiences, launching his first startup as a university student, and the pivotal moments that shaped his career—including being a key force behind Facebook Marketplace. Hear behind-the scenes tales of innovation at Facebook, lessons learned from his time at Trade Me and Stripe, and why he’s passionate about helping New Zealand’s tech sector reach new heights. Packed with relatable anecdotes and valuable insights, this episode is a must-listen for anyone interested in business, technology, and the Kiwi entrepreneurial spirit.

Book your Cyber Risk Reduction Review session now (limited availability)
gorillatechnology.com/cyber-rrr

Special thanks to our show partners One NZ and Gorilla Technology.

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Paul Spain – CEO, Business & Tech Commentator, Futurist

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Paul Spain:
Greetings. I’m your host Paul Spain, futurist and chief Executive at Gorilla Technology. I love seeing individuals and their organizations thrive. The New Zealand Business Podcast is all about this, through sharing the business, leadership and innovation learnings of our most incredible people to educate and inspire each of us so we can do better in New Zealand and and on the global stage. In this episode, I’m speaking with Bowen Pan, an advisor and investor for companies across New Zealand, Australia and the us. Whilst Bowen is perhaps most well known for founding Facebook’s Marketplace Features, one of the world’s most popular e commerce platforms, Bowen’s journey actually began in Dalian, China, and he walks us through his early experience in New Zealand, where his family started over. Building a new life from scratch.

Paul Spain:
Bowen shares insights and hard won lessons about building products at New Zealand tech giant Trade Me before heading to Silicon Valley and landing at Facebook, where he created Facebook Marketplace, a platform that now reaches over a billion monthly users. He takes us behind the scenes of what it took to pitch bold ideas, assemble teams and navigate the very real challenges of scaling products for a global audience. He also dives into his experiences at Stripe and Common Room, offering practical lessons on everything from pivoting software as a service business to understanding what drives successful tech exports. And finally, he shares why he and his family decided to return to New Zealand convinced of the incredible potential and future of our local tech and innovation ecosystems. The New Zealand Business Podcast is brought to you by One New Zealand and Gorilla Technology. Before we jump into the interview, a quick question. How confident are you in your business’s cybersecurity? A cyber attack costs a typical New Zealand small to medium business or over $180,000. And I certainly don’t want that to happen to you.

Paul Spain:
So I’m offering New Zealand Business Podcast listeners a free cyber risk reduction review call valued at $250. You’ll get a personalised action plan to lower your cyber risk. Seriously high value, no strings attached. If you’re interested, tap the link in the show notes or on the episode page to, to reserve your session. Bowen Pan, welcome to the podcast. Great to have you here in the studio.

Bowen Pan:
Thank you. Great to be here.

Paul Spain:
Now, I always like to sort of start at the beginning, so tell us a little bit about, you know, where you were born and what the first years of your life kind of look like.

Bowen Pan:
Yeah. So I was born in Dalian, China, which is a coastal city in northern China. And I lived there for the first nine years of my life. So did two years of primary school. And then my parents decided to immigrate to New Zealand in the mid-90s. And at the time I think we were one of the first wave of skilled migrants who moved to New Zealand on the basis of essentially a merit point system of if you meet the different requirements that the immigration New Zealand has set in terms of the degrees you have and your language proficiency, et cetera. And so my parents applied and passed the interviews and.

Paul Spain:
Fantastic.

Bowen Pan:
And just got a permanent residency and came over.

Paul Spain:
Yeah. So at that stage, did you speak English as a family or.

Bowen Pan:
I didn’t speak a word of English. I didn’t even know the Alphabet.

Paul Spain:
Wow.

Bowen Pan:
My parents could speak English. I don’t think they would have passed the interview, but no. So it was a very new environment for sure. And it was kind of a pretty typical immigrant experience where we moved over, we didn’t have a lot of money. The three of us shared kind of one small room. That’s how we started. Yeah. And there was one single bed.

Bowen Pan:
And so we shared, we rotated around who could sleep on that bed depending on what was on the next day. And so, yeah, so it was definitely quite eye opening for me as a nine year old coming to see. Oh, wow, like all the things that my parents has to go through. Right. To really pave the way and make them something of themselves. One of the stories I remember was during, I think we moved in like towards the end of the year, so it was getting close to the holidays and so someone had told my mom that it’s illegal to leave a nine year old at home by themselves. And she’s like, oh, I guess I have to take them around. And my parents were looking for jobs then.

Bowen Pan:
So my, my parents would go around like door knocking just to hand in the resume to say, hey, like, you know, and the New Zealand economy wasn’t doing so well then, kind of the mid-90s and. And I remembered asking later, I was like, hey, you know, like, why, why do we, why do we, like just, why couldn’t we just take the Bus like why, why do we like walk so far? And it turned out that the money that they were saving for, for the bus was going to be like later on used as like lunch money for me like that day because he wanted to like make that outing a bit more fun for me. So.

Paul Spain:
Wow.

Bowen Pan:
Yeah, so, so that, that was a start like of how my family started here for sure and, and they gave up really respectable jobs. My dad was a senior engineer working on those big ships, on the container ships. My, my, my mom was an associate professor at university and you know, when they came over they had to throw that away, start from scratch. Mom waited tables as her first job here. Dad worked on, worked in furniture factory to start and yeah, worked their way up and now they’re very happy, very happily retired, built their own house and you know, mom ended up working at the University of Auckland for over three decades. Fantastic. But yeah, the beginning was not easy.

Paul Spain:
And what was the early drive for the family to come to New Zealand?

Bowen Pan:
I think it was, I think a lot of it was trying to create a better future for their kid, that is me at the time. And it wasn’t like the future felt bleak per se. I think China at the time mid-90s was just in the very early stages of beginning to kind of embark on its capitalism experiment that eventually became what it is today. But I think Mum, I remember Mum saw me when I started primary school in China. I think back then you started primary school when you were seven, so it’s like two years later than what’s here. But I think after six months attending a primary school I had already had these really worn skin on my hands just from the amount of writing I had to do for a seven year old. And she’s like, oh man, like that’s, it’s not going to get any easier. Like kind of really want Bowen to have a more holistic and one where, you know, it didn’t feel like you had to compete every single step of the way.

Bowen Pan:
And so I think that was a really big driver which is really amazing and really admirable because to throw away everything to throw away, you know, like everything you own, like your, the house, a house and a career and everything. To do that in your mid-30s is really, really memorable. Yeah, yeah, yeah, yeah. I’m not even sure if I could do it. Like, like it’s really amazing. So, so I always, I do think back whenever there are difficult moments and hard things, just remind myself that hey, it’s not, not so bad. Yeah. And my grandparents before Them even, even tougher, you know, they had to.

Bowen Pan:
They had to go through war too. Yeah. And that’s even harder. Right? That’s like not getting bombed. Yeah, it’s a different level of survival. So, yeah, we have it pretty good. And then when I got to uni, it was really being introduced to this group called Velocity, which you may have heard of from University of Auckland. It was called Spark back then, but they had to change the name because.

Bowen Pan:
Well, because of the telco. But that was a really, really amazing group of folks who. I think that was the first time I was exposed to essentially uncapped ambition where there were just these people who are students who used to study at University of Auckland who then went on to found companies. I remember Fatty was a few years before me, who then founded power proxy Priv Bradu, who was the inaugural CEO of Velocity, who then went on to Harvard Business School and ended up founding Blue Oak, which was one of the early pioneers of E waste recycling. And so seeing these people just completely opened up my world of saying, wow, there’s all this possibility out there that you didn’t have to just get good grades and then go and work at a graduate role at a bank, which is. I’m not. Ding. That.

Bowen Pan:
That’s fine. That’s totally a legitimate career. But that’s not the only choice. There’s a lot more choices in the world that’s possible. Yeah. And found a lot of really great mentors. So you may have heard names like Jeff Witcher. He’s a mentor to a lot of young folks, including myself.

Bowen Pan:
And even to this day we’re still very close.

Paul Spain:
Yeah, that’s great. And so what was your first real entrepreneurial endeavor? Was that something that you did while you were studying or was that post. Post study?

Bowen Pan:
Yeah. So I founded my first startup at the end of my first year at university and it was a venture called Uni Friend. As the name suggests, it’s a social networking site for university students.

Paul Spain:
What year was this?

Bowen Pan:
That was in 05.

Paul Spain:
Wow.

Bowen Pan:
It was very early, very early. We didn’t know what Facebook was. It was. I think Facebook had. May have been just founded or very early in a few Ivy League universities. And the idea of. I think at the time there was this whole wave of kind of niche social networks where you focus on particular Networks. So like R1 was like, oh cool.

Bowen Pan:
Like you just get a university email address to validate and then that will university specific networks. And so that was. That gained some level of traction and I decided to essentially take a One year leave from school, where I reduced my workload to, I think, only like one or two papers for the whole year. And because I don’t think at the time, University of Auckland has an official policy of allowing to pause your degree. But I was able to essentially promise University. My final year I did a conjoint degree. So my final year I actually did double the course load in the end to finish it within the same. But.

Bowen Pan:
But I took one year leave to see, like, okay, let me really give this a crack. And at my first year, when I founded Uni Friend, we ended up being runners up for Velocity. And that kind of opened up a whole different set of opportunities around mentors. And that was when I was first introduced to the Ice House. And I remember Andy Hamilton was the CEO then of the entrepreneurial ecosystem here. That was a really great first. My first kind of lesson in how to build a company, how to build products or how not to build a product, and did all kinds of scrappy things because obviously there was very little funding. So we had to develop our website.

Bowen Pan:
So how do we get. How do I convince engineering students to work on it? And then I realized that the engineering school at Auckland had a practical work hours requirement where you had to work something like over 200 hours in order to graduate. And I remember at the time that a lot of my classmates were having trouble finding internships.

Paul Spain:
Oh, that’s convenient.

Bowen Pan:
In software engineering. I was like, well, what a waste. You shouldn’t be working at a petrol station. Why don’t you just come to Uni Friend? I’ll sign off your work reports. And I checked with the professors. They’re like, yeah, that seems legit. Yeah, it’s a real company. So we had a ragtag team of engineering students just come in and out every semester.

Bowen Pan:
Master. And that’s how we built the thing.

Paul Spain:
Wow. Wow.

Bowen Pan:
Yeah. So that was really fun. But thanks to Facebook, I had to go back and graduate because obviously it didn’t reach a level of success after Facebook entered New Zealand. But we learned a lot of really, really great stuff there.

Paul Spain:
Yeah, yeah. Oh, definitely those sort of early things that you get involved and you certainly learn a few lessons. I launched a social network in a similar sort of window to 2003. Maybe we. We launched, but it was. It was focused on a different, different audience. It was world dj dot com. So.

Bowen Pan:
Oh, okay. Whole nother all DJs in the world. Yeah, yeah. Now they’re just in Facebook groups.

Paul Spain:
Yeah. Everything moved to Facebook.

Bowen Pan:
Yeah.

Paul Spain:
Wow, that’s great. So after you Graduated. What did you decide to do?

Bowen Pan:
So I graduated in 08, which is not the best time to graduate, and I think, yeah. So in the end, the only interesting role I could take was the offer that I got from my internship, which was at Deloitte. And so I did just over a year there. And it was actually pretty interesting because it gave me a view of what corporations are like, what government entities are like, and how change happens. I remember at the time, one of the projects that I worked on was Auckland Council. I don’t even remember who the mayor was back then. And the project there was the Auckland Council trying to figure out how to make citizens like us more like an nps. How do we increase NPS with Auckland citizens? Yeah, yeah, like, not quite put that way, but you what I mean.

Bowen Pan:
And then I remember, like digging in, like, okay, well, one of the obvious pieces is like, well, it’s how they interact with you. Right. Like there’s key interaction points where you actually think about the council because normally you don’t think about the council. Right, sure. And it’s. Well, like, customer service is an obvious one. Like, it’s when you interact. And so I remember going in and like digging in and I found this one customer interaction where this one customer called the council like 13 times.

Bowen Pan:
But every time they called in, the council thought he was a different person.

Paul Spain:
It all started from scratch every time.

Bowen Pan:
And he was complaining that his rubbish was not being picked up. And you can just see there was a misspelling for every single one. An address was spelled wrong, like a date of birth was wrong. And I remember presenting that to say, yeah, you want to know why people don’t like you that much right now, this is the example. And so it gave me a real appreciation of scale tech systems and just more crucially, how much it really impacts people day to day. So I spent a year there and then after that decided to fulfill my dreams of working at a tech company. And in New Zealand, the dream then there was only one company and that was Trade me. There was no other scale company at the time and that was really, really interesting.

Bowen Pan:
So I think that gave me a really good grounding in an intuition in marketplaces, in how consumer products work. And I had just enough scale, even in New Zealand was small, but just enough scale. And TradeMe had over 80% of domestic traffic in New Zealand at the time. And enough kind of, it wasn’t a public company. So I had a lot of freedom to try things and do stuff and also help them to launch a few New businesses as well. So back then it was the deals, the daily deals craze. Daily deals, yeah. So we launched one for Trade Me as well that eventually got spun off and yeah, so I really enjoyed my time there and I left a few months after they refloated on the stock exchange.

Paul Spain:
Yeah.

Bowen Pan:
Okay.

Paul Spain:
So when you look back at that time, I’m sure there were some really good learnings and some lessons that you kind of took with you. Maybe first of all, to the point of working inside a tech company that had been acquired. Obviously acquisitions sometimes go, you know, really, really wrong and sometimes they actually work out quite well. What were the lessons that you were. You. You picked up from. From that perspective in terms of, you know, Fairfax’s approach of help to trade me, you know, go. Go forwards rather than backwards.

Bowen Pan:
I think Fairfax literally just left trade me alone.

Paul Spain:
Yeah.

Bowen Pan:
Like they didn’t do anything. Yeah, yeah. Which is better than effing up the acquisition like. Like, because. Because that happens quite a bit. Right. But also, you know, could there have been other synergies in terms of what they could have leveraged to build a bigger business because it was now owned by Fairfax? That wasn’t quite realized either. I think you can argue maybe it had a bit more capital, but TRADMI was never needed more capital.

Bowen Pan:
It was actually highly profitable. Fearfax never really leveraged the trading platform to try to enter the classifieds market in Australia itself when that was nascent. So as a result, like Ren Domain owns the real estate portals, you have Autotrader that owns the cars. So you never really have an equivalent of Trade Me in Australia. So you can argue that that was a missed opportunity.

Paul Spain:
Right. Because ebay had sort of succeeded to some degree in the Australian market, but they didn’t have the breed of.

Bowen Pan:
Only in the general goods area, but they didn’t really have classifieds and classifies as where the money is, which Trade Me later realized after Facebook Marketplace was launched in. That became a very unattractive, essentially declining business. But really the high margin is the three verticals. You have the cars, the real estate and the jobs verticals. And that’s always been true for newspapers. Those used to be called three rivers of gold for newspapers. And it’s never changed. And so I think they didn’t quite capitalize on that either.

Bowen Pan:
But hey, at least he got a return on the investment and it wasn’t value destructive.

Paul Spain:
Yeah, yeah, yeah. Any other big lessons that you walked away with?

Bowen Pan:
I think I really enjoyed how much latitude and autonomy that was given to like a Relatively inexperienced, essentially one year out of school to go in and to propose some really bold ideas and big things to try. And also, like, tolerance for failure. I remember I worked on this massive pricing change for Trade Me. That was a really big deal back then. And we had. I had spent like a month or two modeling every. Every possibility out with all the different elasticity of, like, where the pricing might be with these changes. And we rolled it out and it was a huge failure.

Bowen Pan:
It was a massive failure. Like, it did not work at all. That was. I mean, I was mortified. Obviously, as a new grad, that did not hurt my career at all. In fact, everyone’s just like, well, you know, we learned some stuff. Let’s keep going. All right.

Bowen Pan:
Let’s make sure we don’t make the same mistake again. But there was no kind of stopping or slowing down of the intensity of which we moved.

Paul Spain:
Walk us through what that looked like, to come to the conclusion that this was the wrong decision and then to roll it back. How quickly did all of that happen? And were you kept plugged in right through that whole process?

Bowen Pan:
Yeah. And also there was a lot of qualitative feedback that I remember that I was looking at. But I think we rolled it back after a couple of months. And it’s, you know, after the initial. Oh, yeah, it’s just a spike. Then what will people actually do and observe what they actually do. And then you look at the numbers and you compare that to the models of what you think might have happened. Yeah.

Bowen Pan:
Just never recovered. And the tough thing was these pricing things for consumer products is that it’s really hard to a B test. Like, once the price is out, it’s out. You can’t charge someone a different price from. It’s very hard to keep a secret. And so I was monitoring it daily and feeding Report back and eventually just, you know, made a recommendation. Say, actually we should reverse what I recommended.

Paul Spain:
That came from your guidance and recommendation.

Bowen Pan:
Yes, yes. Yeah, yeah. Because it was clear that it was. That it just wasn’t. It was clear that there was a net revenue loss and customers were not happy. Like, it’s like the worst of both worlds. Like, you actually not ended up achieving any of the goals that you were trying to do. And so that was a big learning.

Paul Spain:
Yeah, yeah. And then you moved on from Trade Me. Were there any other things that really sort of stood out within. Within Trade Me, you launched. Was it Treat Me?

Bowen Pan:
Yeah, Treat Me was a. Was a daily deal site that was. That was fun. It was a. I mean, the Daily deal sites were really just a sales business in disguise as a, as a tech business. It’s really just using email lists, but it was fun to work and talk to so many local businesses. I think that was probably my first intro to Smeath and really like, I mean this is, I think I closed the first 30 deals personally, so I was literally driving up to like massage spas and golf courses and like trying to work out the deals with them and getting assigned and, and then we hired real salespeople after that.

Paul Spain:
Wow.

Bowen Pan:
Yeah. So it gave me an appreciation for just what SMEs cared about, like how, how, how hard it is for their margins and, and then, and then subsequently like building out that the deals business was pretty interesting because that was also my first time working with a scaled sales team that, that was also new to me, which is proved to be like quite useful later.

Paul Spain:
Yeah.

Bowen Pan:
And, but, but ultimately, yeah, the launch of that business was pretty fun. We launched, I remember with like a $1 burger fuel deal as a way to like acquire customers onto, onto the TreatMe platform.

Paul Spain:
What was it?

Bowen Pan:
A $1 burger fuel.

Paul Spain:
Burger fuel.

Bowen Pan:
Burger fuel. Yeah. It’s a good deal. Yeah, yeah. And I think we put aside something like 100 and I can’t remember the exact amount, like maybe tens of thousands of dollars for the launch day to subsidize the deals. And it was launched and we had a live counter on a number of vouchers being bought and it was just moving like that the whole time. Yeah, yeah.

Paul Spain:
And did you have a limit on how many you were selling?

Bowen Pan:
Oh yeah, yeah, yeah, yeah. We sold out after a few hours. Yeah, yeah, yeah. And then, and then it’s like, oh, you can like put your email in next time so you don’t miss out. And so that was pretty effective in acquiring lots of customers. Yeah.

Paul Spain:
Okay, what happened from there?

Bowen Pan:
Yeah, so after I finished up at Trade Me, I looked around and really felt like unlike now, there really wasn’t much in the tech scene for New Zealand. Right. Like this is like as we just talked about before, like very early zero pre rocket Lab and otherwise not that many software business I think like Orion Health and like Data like Datacom, like it was those kind of companies but no real kind of global venture scale businesses and no venture capital industry either. And so it’s always been a dream of mine to work in Silicon Valley. I used to always read TechCrunch even back then on what’s Happening and I really wanted to give it a crack because of all the examples that were set before me by all the folks that I met at Auckland Uni. And so I decided to say, well, what’s the easiest way to go? So my first path is I applied to various roles, and obviously they’re like, who is this random Kiwi? I’ve never heard it. Trade me. And so that didn’t work.

Bowen Pan:
And the second path was, well, maybe I could try to go through via school. That would give me a visa. And that’s what I did. So I was very fortunate. Mentors like Jeff, who introduced me to other people and other people at the school who talked with me. I remember there was a lady, Melinda Lehman, who worked at Stanford. I think she was either in the development office or the admissions office. And she loves New Zealand.

Bowen Pan:
Just happens to love New Zealand. And she has, like, her kids went to university here, and she was visiting Wellington at the time. And I remember meeting her at a cafe and she looked at my profile and she said, you know, I think Stanford GSP would love your profile, actually. And I was like, really? Like, I never thought about that. Seems such a big thing to such a big leap. Right? And so that gave me some confidence, and I really decided to give it a crack. And so in the end, ended up at Stanford doing the MBA program. And.

Bowen Pan:
And that was my. My way to land in Silicon Valley. And. And a related story to that is that my. When that happened, I met my wife Maya, a few months before I moved over to the US and so I had to try every conceivable way to get her over, try to convince her. So in the end, I convinced her to quit a job for Marcel Mac, because she had talked to me about how unhappy she was as a lawyer and got her to crash in my dorm for a year, which was technically not allowed. And she ended up saying, oh, maybe I should give this a try. And then she applied, and she ended up also getting into the law program.

Bowen Pan:
And so we ended up graduating together.

Paul Spain:
Wow.

Bowen Pan:
Which was great. Yeah, yeah. And graduating there. Then give you an additional 18 month, essentially, like a grace period to work while you apply for the work visa in the US and then so I ended up at Facebook.

Paul Spain:
And so walk us through your journey at Facebook, because, you know, I think there’s probably a fair bit packed in there. And, you know, tell us about how you pitched the idea for Facebook Marketplace.

Bowen Pan:
Yeah, yeah. So my time at Facebook is divided up into roughly, like, three episodes. So there’s the first four years. So I was there for six and a half years. The first four years was marketplace so we can talk about that. And then the second episode was a relatively more unknown, but actually a pretty interesting piece, which is short form videos. So that’s, that’s a whole story about TikTok and, and, and launching the first version of Facebook short form video experience that eventually got rolled up into reels. Facebook and Instagram reels.

Bowen Pan:
And then the last, the last part of my experience there was building out the live gaming experience, building out live streaming and like a Twitch competitor where people watch other people play games. Sounds strange for folks who are not in the space, but it is a very popular, very popular kind of entertainment category. So that’s how I spent my six and a half years. The first four years, Marketplace was the most formative and it was just a really special time at Facebook. I would say it was a time when the level of reach that the company has, but to the number of employees it had was unprecedented. I think for every one engineer at the time, there were something like 2 million users or something like the ratio was crazy. And they were growing so fast that it was. I remember that when I signed my contract with them to, when I started, which is about a semester, they had doubled in size.

Paul Spain:
What?

Bowen Pan:
Like, in that time it was just, it was just nice. Like it was just growing like crazy. And even after doubling in size, when I went to their campus, like the campus was half full.

Paul Spain:
Yeah.

Bowen Pan:
Like, I’m not sure if you’ve ever been to the Facebook campus.

Paul Spain:
I think I have, actually.

Bowen Pan:
Okay. Yeah. Yeah, it looks like Disneyland because it’s designed by Disney.

Paul Spain:
Yeah.

Bowen Pan:
Like, so it’s a very fantastical. And now they have like massive buildings everywhere. But like the original buildings, it was, it used to be the Sun Microsystem campus. So they bought that off. But anyway, even that was half. So they were reasonably early stage, but they had massive scale already. And I think in my first week they had just hit a billion users. And they were terrified of losing the culture, of moving fast and learning quickly.

Bowen Pan:
And so they produced this really famous Little Red book. It’s like a little cultural book that really try to instill how Facebook should be operating and how important it was that everyone stays humble that no one uses Facebook because it’s Facebook. People use Facebook because of their friends and other people on there and all these kind of cultural values. So that was the first part is Facebook was in a really interesting time and I would say one of the real golden times of the company. I had a very strong personal interest in commerce, social networking sites, probably because of uni Friend and trade me. And just through me, trying to find every nook and crevice of where could there be a spark of something. Because surely there’s something when there’s a billion people on a platform. And that’s when I came across a piece, like a little nugget of research that suggested that one third of people in Indonesia, which is where these researchers went for that particular report, was treated Facebook as their primary e commerce site.

Paul Spain:
So this was an internal Facebook report?

Bowen Pan:
This is a research report. Yeah. So Facebook did do these research reports all the time. It was. The report was for something completely unrelated. But this is one of the random, surprising things that they filed away in the appendix. And that kind of sparked a. Yeah, just a curiosity of like, where could that be happening? Like, that seems pretty anomalous.

Bowen Pan:
And so decided to just use my time during onboarding to really do some research and very quickly honed in on Facebook groups. And Facebook groups was the only place where people could buy and sell stuff that was not like your friends. And so did that. Ran a few queries, realized that, oh, my God, there were tens of millions of people, but fragmented across hundreds of thousands of groups that people were just organically creating. But there’s definitely a way to think about how do you aggregate all this together and really create a centralized marketplace. And so that was a start.

Paul Spain:
Did you think there was an openness to some sort of marketplace, e commerce type of platform within Facebook at that point?

Bowen Pan:
Not at the leadership level, no. The leadership level was very, very focused on killing Snapchat. That was like the era then. It was like, Facebook is going to get killed by Snapchat. All the teens are banning Facebook. Kind of, I guess, similar themes to now. And I think, yeah, because of that kind of singular focus, there wasn’t really much headroom for that. But.

Bowen Pan:
But there were a few senior, more senior people at the company who had personal interest in this. So. So one of them is this lady called Deb Liu, who used to be. Ran the homepage of ebay. Like that was her job. So it’s a pretty big job.

Paul Spain:
Yeah.

Bowen Pan:
And then she actually like, took a. Almost, you know, externally be viewed as a demotion of working as a. As a product marketing manager at Facebook. And because, you know, and she joined a few years earlier, Facebook was right. Growing really quickly, but she had a dream of building out a marketplace, but it was really hard to find the angle. Right. Like she. She had tried to do.

Bowen Pan:
Do it through pages, where you can allow a page to sell stuff that kind of like logical, right? But really hard to get scale. Like, how do you just get millions of merchants who suddenly would just upload everything? And if they, even if they do, like, how is that better than Amazon? Or maybe E commerce ads and you can make the ads buyable, maybe, but then that’s like super fragmented. It’s just like feed ads. It’s not really an E commerce experience. So I knew that she would be probably interested and so I ended up pitching this idea to her and it turned out that she actually had some thoughts around some of this stuff, but it never really all came together. And so I said, oh cool, I have to work on this. This is really rare. It’s really rare to have tens of millions of people who are organically doing something and you can really leverage the supply and demand to build a centralized marketplace.

Bowen Pan:
It just doesn’t happen very often because marketplaces are very hard to build. And she’s like, oh, this no headcount. Like there’s no, doesn’t matter. Like, it’s just really, this is really, really special. Just, just, just give me whatever, weeks, months, like, and just see if we can figure something out. And then I think, yeah, she, she probably looked at me like some kind of crazy person and then she said, oh, you should meet this other person. And, and Vijay is a really, really special engineering leader. He’s actually now the CTO of OpenAI.

Bowen Pan:
CTO of OpenAI.

Paul Spain:
Oh, okay.

Bowen Pan:
Yeah, yeah, no big deal. But Vijay was one of Deb’s engineering partners. There’s a whole other side story where Deb and Vijay actually built a separate really important business for Facebook, which was the mobile app ads. Some would argue that that was the ad product that saved Facebook because before those ads, the general consensus is that Facebook cannot make money for mobile. And that was the first billion dollar ad production already. So they had some respect in the company. And anyway, so I met Vijay and then he’s like, oh man, we really connected. I think Wal was like a 15 minute chat turned into a 45 minute an hour conversation.

Bowen Pan:
And Vijay became my first volunteer to essentially code out and build out a prototype, initially in groups, and then we recruited other volunteers who used their weekends and evenings. And so we built the prototype. One of the folks to be able to present this to Zuck because Zuck at the time would review like top 10, like demos. And Zuck saw, it’s like, oh yeah, it’s pretty cool when we’re shipping.

Paul Spain:
Wow.

Bowen Pan:
Yeah, we’re like, oh, we don’t have a team. And so we Pulled forward some headcount from next year. And it was like very small teams, like three or four people. And that formed the core engineering team. And I was the first product person to then form that, to then build out the first version, which was essentially detecting whether you’re buying and selling something in a group and then turning that group into a full sale group. And that was a building block of a marketplace, which then later on about. I think it was about just over a year later, then led the launch of the Marketplace tab itself. And we launched it to all English speaking countries to about 350 million like monthly active users.

Bowen Pan:
And then scaled it later to other verticals like cars and rentals. And when I left Marketplace, it was at about 850 million monthly actives. And then I think now it’s got about a billion monthly actives, which is. Yeah. So surreal. It’s still surreal. It’s real for me, like, because those, those numbers are. Even for Facebook, they are big numbers.

Bowen Pan:
To fast forward that, to see this just become a thing that people just. Yeah, of course, you buy and sell on Marketplace for certain stuff is very satisfying.

Paul Spain:
Yeah.

Bowen Pan:
And there were many pivots. I remember after the launch of Marketplace, I wrote some. They were historians at Facebook, by the way. I didn’t know this until towards my end of my tenure where they were documenting what was happening in its corporate history. And so they were using all these internal blogs that I wrote on how did Marketplace come to be. Which was really fun. But I remember having this diagram of showing all the different screenshots of how Marketplace evolved and how it came to be. There was a lot of nuance in building it out.

Bowen Pan:
There was a nuance around, okay, how do you bootstrap supply? How do you get enough listings? Clearly there were enough listings in the groups, but the groups were private. They’re mostly private groups. And the group admins did not view these group surfaces to be Facebook’s property. They viewed it as their own space. So how do you. An experience that doesn’t destroy the privacy and the ownership of these group admins, but also respect, but also allow this supply to be pooled into this public space? How do you think about ratings and reviews when it’s attached to your real profile, do you allow people to. If they post something on Marketplace, should their friends see it? And it turned out the answer was no, because a lot of people feel judged. And actually there’s all kinds of really interesting social dynamics where if you are a parent, often there’s kind of this weird shame attached to buying used baby items, even though it’s completely normal.

Bowen Pan:
But it’s kind of a weird, oh, I’m getting my kid, not the best thing. So there’s a lot of social stuff to figure out, and they’re on the demand side. How do you direct people to this marketplace as opposed to groups to bootstrap this experience? And the behavior of how people bought was also very novel. Because before Facebook Marketplace, the consensus of how e commerce works is through search. Like 90%, 90% plus of all transactions on ebay and Amazon is through a search. Right. But on Marketplace, it’s completely flipped. It’s 90% browse and 10% search.

Bowen Pan:
Because that’s just people. What people do on Facebook. Right, Right.

Paul Spain:
Is that because you’re showing products that are local to them or you have enough data about them to know what things they might be interested in?

Bowen Pan:
I think eventually we could do like we did that. But initially people just went to Marketplace because he ran out of stuff on newsfeed. Right. It’s a very different behavior. And then you are probably just like on the train for, like, 10 minutes, and you’re just killing some time just, like, looking at that. So it needs time to cultivate. So over time, they were high. Then people ended up searching over time, but that took years.

Bowen Pan:
But initially, how do you design experience that just completely feels different from every other e commerce experience that you would know of, which is people browsing for local things for sale, for entertainment. Like, it’s just a very different, very different experience.

Paul Spain:
Wow.

Bowen Pan:
But there were also a lot of other things of, like, we had a small team, and I think it was like the fourth pivot or something we didn’t have. I think we were like, running out of time in terms of the deadline that was set, and we had to move fast, and we couldn’t afford building the experience out on iOS and Android natively. This just takes too long, requires too many people. And so we threw a hail Mary and we said, let’s try this experimental technology called react native. And react native team at Facebook at the time was in. They were in the crevices of Facebook settings and stuff. It was very small. And so we talked to the team and we’re like, hey, this is your time to shine.

Bowen Pan:
Do you want to be exposed to 350 million people? And so I think overnight, they doubled their team, and we worked hand in hand with them. And so react native was basically plugged out of security, and Facebook marketplace became the first true scaled react native product. And that’s how we were. We built like the initial launch version on Marketplace in 10 weeks, and it was largely because of react native.

Paul Spain:
Wow.

Bowen Pan:
Yeah. So there were lots of stories there.

Paul Spain:
Well, we probably could sort of delve in a lot more. We definitely want to cover some other stuff. What would you say would be the kind of the. The biggest challenge that you had to deal with during that journey?

Bowen Pan:
I think the biggest challenge is. I think there were definitely different challenges, but I think in terms of starting Marketplace itself, it was really to sell the dream and reframe Marketplace in a way that is unique to Facebook and make it and create the right for this product to exist in the minds of the consumers, as opposed to fitting that into the dreams of what different execs might want. I think that’s often a very common tension in large corporate. When you try to build corporate venture, and that was not easy. And it’s easy to. For folks to dream of building an Amazon competitor because that’s really sexy and that seems like a lot of money and everything else. But really what drove Marketplace success is local commerce. And on the surface of it, it doesn’t look that sexy.

Bowen Pan:
It’s like, oh, it’s just people selling to each other locally. But that was Facebook’s secret sauce because that was the core of how those group communities worked. And it’s also gave Facebook some core advantages in terms of where local trust and safety matters a lot more. Therefore, Facebook’s real identity profile actually had a real unfair advantage. And Local also gave us unusual level of entertainment that you can see just stuff, what people are selling around you, which is really interesting. And you can even change your location to see what different areas are selling. Yeah. So uniquely, like, fit Facebook and then painting out a vision of how that can become such an instrumental product for Facebook beyond just local item selling with other verticals and stuff.

Bowen Pan:
I think that was probably the hardest thing. That definitely took longer than what I naively originally thought. But ultimately we got there.

Paul Spain:
Yeah. Yeah. Wow. Yeah. So much packed in. We could probably go a lot deeper there. But keen to hear a little bit more about what else you did before you came back to New Zealand. You had a period as head of product at Stripe and also after that you were at Common Room.

Paul Spain:
So maybe you can tell us a little bit.

Bowen Pan:
So afterwards I went to. After Facebook, I went to Stripe, which is a fintech company that does payments. And I went there because I wanted to really see and test to myself on how much of the skills I learned at Facebook is actually like real product leadership and not Just me getting good at how to do Facebook stuff. And it’s as different as you can get because I worked it’s a fintech company and I was working in developer experiences. So I did just under two years here and it was fun, but also it was a good grounding in payments. But I also felt like two years in payments was good for me. Yeah, it was good. And then I really wanted to build out and experience B2B SaaS.

Bowen Pan:
Like that was the one piece of the puzzle that I just did not have like really solid experience in. And so that’s where I went to Common Room. And Common Room was is a B2B SaaS platform for sales and marketing, specifically helping you to build pipeline for sales teams and an account based marketing for marketing teams. And there was a really fun time. Like it’s come. I can’t say like good enough things about the folks at Common Room. If I was in the us I would have been there for a very long time. And the.

Bowen Pan:
But the time I was there was quite a pivotal time for the company because when I joined the company that wasn’t what Common Room was doing. Common Room was a community management platform.

Paul Spain:
Wow.

Bowen Pan:
For social media managers and community managers. But I had like the core pieces of technology that was very useful for go to market. So I went in and I worked with founders to essentially execute a complete pivot of the company and essentially gave out. The company had about a million ARR us in community management which we basically completely gave up.

Paul Spain:
So you destroyed your existing revenue?

Bowen Pan:
Yeah, we didn’t completely destroy it per se, but we basically had to pivot the entire company away from it. Now it’s a very small proportion of the total revenue and built that out to be essentially the poster child for AI go to market startups. And now Common room serves about 60% plus of Cloud 100 companies and a lot of the AI companies you might know as well. So companies like Atlassian Notion, Zapier, their sales team all use Common Room to build their pipeline, which is really fun because that gave me also a grounding in building out go to market.

Paul Spain:
That’s great.

Bowen Pan:
And then after that, my wife and I had always planned to come back to New Zealand. We actually decided that we probably want to seriously think about New Zealand with the birth of our first kid in 2020. And we started really looking. And so we initially did that by getting involved with a few of the early VC funds that were just starting in 2020 in New Zealand. And over that time we just really started getting increasing conviction that the startup ecosystem is real in New Zealand now. And there’s a real thing, a really amazing, fantastic thing happening here that’s really, really encouraging. And there are also some companies that are, I think, the best you will find anywhere in the world with a level of ambition that matches any company in Silicon Valley. I think we need more of them, but the fact that there are a few that meets that bar is really, really amazing.

Bowen Pan:
And that ecosystem that we had talked about during my time at Velocity in undergrad is starting to become true, which is just really amazing. And I’m of the firm belief that the growth for the New Zealand economy is highly dependent on the success of our tech sector, because it is one of those sectors that has uncapped growth like nearly every single other part of the economy, which is. Which are all very important. But there are some kind of a limitation to how much you can grow because there’s physics limitations, but tech is not one of them. And the fact that it’s already become the third largest export industry for New Zealand and I think it will overtake tourism in a few years. And there’s no doubt in my mind that this is our ticket to ensuring that we can afford the future that we all want in New Zealand. So one of the big reasons why my wife and I came back to New Zealand is to do what we can to really accelerate and make the future happen faster. That’s fantastic.

Bowen Pan:
And we’ve had so much fun. What a great place it is to raise our kids. But not only that, it really did not feel like a trade off for us at all in that not only are we doing interesting work here, but we’re also hopefully helping companies to be successful to then plug back into the local community that we love.

Paul Spain:
All right, well, we’re out of time, so thank you very much, Bo and Pan, for joining us on the show.

Bowen Pan:
Thank you for having me. This was fun.

Paul Spain:
Yeah, appreciate it. Look forward to the next one.

Bowen Pan:
Thank you.

Paul Spain:
Cheers. I trust you enjoyed hearing from Bowen Pan in this episode. Of course, the 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 successful leaders, including founders such as the newly knighted Sir Rod Drury of Zero Cecilia and James Robinson, My food bag, Sir Peter Beck of Rocket Lab, Brooke Roberts of Sharesies, Sir Michael Hill and many more. And because a rising tide lifts all boats, be sure to contribute to lifting New Zealand’s success by sharing a favorite New Zealand Business podcast episode with a friend. Thanks for listening in. This is Paul Spain signing out. I’ll catch you on the next episode.

Paul Spain:
Oh, and quickly, before I go, if you haven’t already, grab your Cyber Risk reduction review. Normally $250, but free for a limited number of New Zealand Business Podcast listeners this month. It’s a fast way to get a personalised plan to lower your cyber risk. Just hit the link in the show notes to book your session.

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Jamie Beaton – Founder and CEO of Crimson Education 2020 Interview

Posted on 26 Dec 2025 in Featured, Podcast

Jamie Beaton – Founder and CEO of Crimson Education 2020 Interview

Join host Paul Spain in the retrospective interview recorded in November 2020 with Jamie Beaton, CEO and Co-Founder of Crimson Education.
From starting the company at just 18 to leading a global team and launching New Zealand’s first online high school, Jamie Beaton shares his fascinating journey through entrepreneurship scaling international and redefining what’s possible for Kiwi students. Listeners will get an inside look at the Crimson Story, from the early days of educational hustle to navigating funding rounds, leadership challenges, and expanding into new markets. Get ready for an inspiring conversation packed with insights on ambition, innovation, and the future of education.

Special thanks to our show partners One NZ 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:
Greetings. I’m your host, Paul Spain, futurist and chief executive at Gorilla Technology. I love seeing individuals and their organizations thrive. The New Zealand Business Podcast is all about this through sharing the business, leadership and innovation learnings of our most incredible leaders. In this episode, we are replaying an interview from late 2020 with Jamie Beaton, co founder and chief executive of Crimson Education. Jamie shares his remarkable journey from his early years and academic achievements through to the bold vision that led to the creation of Crimson Education, a global education powerhouse. Discover how a passion for learning, early family influences and seizing unexpected opportunities led to the creation of Crimson, a company now supporting thousands of students around the world to win placements in at the world’s most esteemed universities.

Paul Spain:
Jamie shares insights into scaling a business internationally, tackling rapid growth challenges and fueling innovation in online learning with Crimson Global Academy. And he offers honest reflections on mistakes made, lessons learned, and why bold ambition and adaptability are critical for entrepreneurial success. The New Zealand Business Podcast is proudly brought to you by One New Zealand and my company, Gorilla Technology. If your mid size or smaller organization is struggling to get the best out of it, or you’re worried about cybersecurity risks, then get in touch. Let’s grab a coffee together. Jamie Beaton, co founder and CEO at Crimson Education. Welcome along, Jamie.

Jamie Beaton:
Thanks. Great to be here, Paul, and congrats on the wonderful podcast.

Paul Spain:
Thank you. Thank you. Well, it’s a great opportunity, I thought, to sit down and hear a little bit about the Crimson story because I was looking back, how many years is it now since you started the business?

Jamie Beaton:
It’s crazy. We started this when I was 18, now I’m 25, so no longer a young entrepreneur.

Paul Spain:
Well, I think in most people’s books you’re still a fairly young entrepreneur. But look, yours is a really interesting story and the story of Crimson because you’ve had quite a successful journey, I think it’s fair to say both your personal journey from an educational standpoint and Then how you and your team have really built something around that. You’ve attracted pretty significant funding and you’ve expanded globally. So the current state, there’s lots of bits and pieces in there in the media about the hundreds of millions of dollars valuations and things like. But I’m interested in sort of learning a bit about your story, the challenges, the learnings along the way. So maybe we can start out with your school days and, you know, where you grew up and where you studied at school and so on. Tell us a little bit about your upbringing.

Jamie Beaton:
So I grew up in Glendowie in Auckland. And in my 18 years, I guess, in school, I lived once in 31 Elizabethan Gardens and I moved up the road to 29, so we were in the same street. My whole, I guess, upbringing, I was at St. Kent’s Prep year one to year eight and then King’s College on a scholarship from year nine to year 13. And I guess growing up, grew up with my mum and my grandparents on my mum’s side and we were a really close kind of three generational family. So I guess from my early days there was a big cultural focus on education at home. My mum always emphasised to me that education is the most powerful way you can kind of transform your own opportunity. My granddad, when he was 14, was offered a full scholarship to a British boarding school, but he couldn’t afford to go because of the uniform costs.

Jamie Beaton:
So he ended up dropping out of high school. And he worked for about, you know, 50 years or so in some very manual industries, you know, working hard, but was a very sharp guy. But the education opportunity was. Was challenging for him. Then that the kind of baton got passed to my mum. She went to Auckland University, she did an MBA degree, law degree, commerce degree and accounting degree back when university was basically free. She worked very hard, was an out of zone student at Epsom Girls Grammar School. And so I guess growing up I was very inspired by her tenacity and grit and, you know, love of education.

Jamie Beaton:
And that definitely infected me. So I guess that’s a bit about the, you know, upbringing so far.

Paul Spain:
Yeah, yeah. So how did that sort of come through day to day? What were the things that sort of, you know, stood out as a, as a youngster at home? Did you sort of draw comparisons between your grandparents and your mother? What were the. What were the things that sort of, you know, settled in your, in your mind? And what did that sort of, that grit look like? That.

Jamie Beaton:
Totally, totally. So from a young age, my mum was, you know, really focused on supporting me educationally. So she made a lot of sacrifices to get me to things like tutoring. So I have this funny memory of being about 6 years old, going out to botany, to a tuition center with about 200 Chinese students and me. And I just thought this was normal, you know, Saturdays I would do my math and English tutoring. I used to do phonics down in Penrose. When I was about three, I think I went through numberworks, which is now a crimson company, which is quite cool, basically. Really enjoyed education.

Jamie Beaton:
It became something that I was really passionate about. And I have these very distinct memories up to the age of about 11 or 12 where I’d be sitting in like a Wendy’s in Otahu or something. My mum would be testing me on history or social studies and she would know the content, you know, probably better than I did. So we were a real team going through school. And she really helped foster that real love of learning within me. Then I think around those years, near the end of St. Kent’s Prep, I became pretty motivated to do well at school, I guess, you know, really intrinsically. And then coming into high school, you know, I was kind of all guns blazing, shooting to really do well at school, both because I loved my subjects and I really saw it as a really important path forwards to these top universities.

Jamie Beaton:
A key switching point for me was when I was about 14. Up until that point, you know, my mum and I’s goal was really to stay within New Zealand and probably do medicine locally. That was, you know, something if you’re good at science is a pretty respectable path. But I didn’t really have a deep reason for I wanted to do that. And I sat on a train from Glenones to Kings next to this guy called Ben Kornfeld, who was the dux of Kings. He was year 13 and he was an American citizen who’d just gotten into Yale. And he told me that I should consider looking overseas. So that really shifted my horizon because I really respected him a lot.

Jamie Beaton:
And I thought about, okay, what would it take to get into these schools I hear about in movies like Harvard and Yale and stuff. So I spent the next four years going pretty hard down that process. That led me to take about 10 A levels when most students do three or four, create a lot of different clubs, different extracurriculars and. And, you know, ultimately applied at a wide range of schools in the us, uk, Middle East, Singapore. And then after getting into all of those schools, you know, really had lots of families reaching out to me about My own education experience, and that was really part of the genesis of Crimson.

Paul Spain:
How were people finding out that you were doing that? Did you get some media coverage? Was it. You know, how was. Yeah, how was it that you were attracting attention at that point?

Jamie Beaton:
So, I guess going through Kings, you know, Kings is a very supportive community, celebrate achievements. So, you know, I would often go on to prize giving, winning awards for ducks or different subjects, et cetera, going up in assembly. So lots of the community knew me pretty well, and I was a prefect in the school and really involved with lots of younger students and things like debating and various sports like hockey and tennis. So I came back and I did the Leavers speech just after year 13 had ended. And I’d gotten into Harvard and Cambridge at that point, and so they got me to do a kind of a keynote speech to the students about my journey through Kings. And so lots of students, I think, were quite inspired by that because they saw that, you know, this didn’t happen that accidentally. Like, I was quite intentional from age 15 onwards about this goal. I guess I was kind of constantly pushing limits and kings around, what subjects I could take, you know, creating new clubs, things like this.

Jamie Beaton:
And so initially, it was a lot of just students knew of me through the community. So I was doing things like tutoring and giving some advice. And then I went to actually an internship following high school at the Ice House, which is, you know, the accelerator here locally. And I saw these entrepreneurs, you know, creating the different companies, raising capital, and I thought, you know, we’re making great traction doing this, and it’s all happening organically. Maybe we can kind of supercharge this. So that. That was really how it unfolded. So I remember our first event.

Jamie Beaton:
I think I had about $40 in my bank account at this point. And then I think I got some funding from University of Auckland on the scholarship, and I created our first event on the Crowne Plaza in Auckland, cbd. We invited along a lot of students that had just gotten into overseas schools. We had about 200 parents come along, and that was the first kind of Crimson Kickoff event. And that really created a wave of our first initial students coming along to our services and then really got the ball rolling.

Paul Spain:
So as you developed the idea for Crimson initially, what did that first idea look like in terms of exactly what you’re selling? What were you charging? What did that actual. That version one, or whatever you want to call it, beta version of the business kind of look like? Yeah. What was that picture?

Jamie Beaton:
Yeah. So I guess to answer this question for A second, think about what high school career guidance looks like. So typically you think about a career guidance counsellor who often we’ll know a lot about New Zealand universities, maybe a little bit about Australian universities. Typically they’re going to recommend the universities that are, you know, most local. So if you’re in Auckland, maybe Auckland University, for example, and for one of these guidance counsellors, you know, these foreign universities are quite the unknown. And so, you know, generally they’re not going to recommend these options because it’s a bit out of their comfort zone. Yet for the students that have the potential to get into these schools, this represents a truly transformative opportunity for them in their careers if they can actually get in. So I saw first of all this kind of opportunity wedge where there were many kids that had the talent to get in but were not applying because they didn’t know A, they could B, how to, et cetera, and they didn’t have role models that had done that.

Jamie Beaton:
So that was sort of the observation I had. I saw other kids in my own year group at King’s and other schools like Westlake, McLean’s College, et cetera, that were, you know, really strong academically but ultimately weren’t successful getting into these schools because they didn’t have the right kind of profile and strategy applying. So that was my observation. I also had my co founder, Chandra. We met on a trip to Europe called the Hague International Model un. Actually, we met before that at Model un, but that was the trip we really got to know each other well and on that trip I was really impressed by her. She was the head girl of Albany senior, she was UNICEF youth ambassador and she was just very charismatic and care for vulnerable communities and she would have been an amazing candidate for US universities, but she had never been told about it. And so she found herself in the first year of Auckland University doing health science and she really wasn’t liking it that much.

Jamie Beaton:
You know, she enjoyed it a little bit, but, you know, she really could have been in a different environment and, you know, her experience, with my experience together, we realized this is a real pain point. Lots of kiwis could be going down this quite unique pathway. And so as far as what the offering was, I looked for inspiration as to kind of what my high school had been like. So my last year in high school I had tutors in seven different subjects, you know, math, English, biology, chemistry, physics, French, I think the SAT as well. And I was actually usually at the top of a lot of these subjects, but I used tutoring to get through 140 hours or so of content for, say, further maths in 30, 40 hours. Because I had so little time that I had to be hyper efficient with my learning. And I found that a traditional school classroom of 20, 30 kids really wasn’t that effective for me because I’d covered a lot of the content kind of before. So when we launched Crimson, the idea was to take students and give them a clear game plan as to what they could do to build their profile for these skills, or which would often involve a strategist, which would often be me in the early days, helping them make a plan for what activities to do when, what subjects to do, then finding them, this kind of network of tutors around them to make that happen.

Jamie Beaton:
And initially that was all done with kind of off the shelf tech, like Skype, things like this. And that was kind of how we got rolling. So I recruited the three other kids that got into Harvard that year from New Zealand, many of my classmates across New Zealand that I did debating with things like this. And then when I got to Harvard, I just began, I recruited all my roommates, all my friends from freshman year, et cetera. And that became the initial, you know, sale of tutors that, you know, began delivering for our Crimson kids back here in New Zealand. So that was kind of how the offering evolved as far as the price point, you know, there was reasonable market standards for what tutoring prices were. College counseling was a novel concept within New Zealand. And so I guess we thought about, you know, what our cost basis was and then also, you know, what kind of value we were bringing to people.

Jamie Beaton:
And I think about, for example, you know, an example like one of our students, Lucas Lee, he was at McLean’s College. I think he, you know, he bought a Crimson program. He probably would have gone to like a Big four or something within New Zealand, probably on a salary of 50, 60K. NZD came through Crimson, got into Harvard, now he’s on Wall street earning, you know, more than 100k USD. And, you know, even within one year, the earnings differential is just massive and will only grow over time. So we’re bringing significant value and there’s a lot of complexity. And so, you know, that means that the price point can be significant to reflect the value. And so that, that was some of the thinking that came into the initial logic.

Jamie Beaton:
But we were always focused on making sure that students were very talented, could always access our services. So we would have, you know, pro bono support or discounted support if people, you know, had demonstrated a financial need, which is a System similar to kind of what Harvard has for their financial aid policy. So that kind of got us going basically.

Paul Spain:
Yeah, yeah, that’s cool. Now what’s the, the current scale of the business in terms of how many people do you have here in New Zealand, in terms of full time staff, how many do you have elsewhere and then how much do you draw on part time resources, whether that’s tutors in varying parts of the world or other people that you tap into.

Jamie Beaton:
So we kick this off with Chandra and I over in Albany and then today we’ve got about 4, 400 full time staff, a Fortune 100 based here in New Zealand across a lot of different companies. We have here sheltered up in Pau, you know, just actually a floor below the Ice House where I did my internship that kind of got a lot of this rolling. So there’s a bit of nice kind of poetry there. And then we also have thousands of mentors around the world. These mentors are often at schools like Harvard, Yale, Princeton, they’re in the Rhodes community, they’re in top schools like Tsinghua in China, they’re from Auckland Medical School, top schools in Australia, as well as great companies like Facebook and Uber and Google, things like this. So these mentors are the ones providing the service delivery to students as well as a team of strategists which are responsible for the students kind of candidacy plans. So that gives you a sense of the personnel. And Crimson’s now in about 20, I think we’re in 27 different markets now with offices in more than 20.

Jamie Beaton:
And each of these markets has localized teams speak the local languages, which has been quite instrumental to our success. That’s really the expansion. Key markets for us in terms of personnel would be China, would be America, would be actually Russia as well. We’ve got quite a lot of headcount in a lot of our different markets.

Paul Spain:
Yeah. Wow. That’s quite a bit of growth and a lot of people that you’ve got to look after. So how did you do that? What were the sort of the steps that have allowed you to do that? You obviously had to get some funding along the way. And then how do you, how do you operate in terms of deciding who to get what sort of resources you need to hire and how’s that journey tracked and who are the other people involved in terms of board and advisors? Because you’re obviously a pretty smart guy, Jamie, but it’s always useful to tap into other people. Right, so how’s that looked?

Jamie Beaton:
Cool. Okay, so I guess for some context, first of all when we started this, Fang Zhou, our third co founder, Chandra and I, we were all 18, right? So we had no previous business experience. I think I’d actually run, like a little party business that King’s, you know, momentarily. Chandra had done some tutoring, feng shui, done a bit of tutoring. That was it. So we really had to build a good team around us quickly, and we had to level up. That’s actually one of Crimson’s four values, level up, which really speaks about constantly learning. So you’re equipped for the next phase.

Jamie Beaton:
And we think about that as co founders that, you know, the Jamie, Chandra and feng shui of 2013, you know, could not handle the Crimson of today, and probably the 2020 version of ourselves can’t handle what we can become in. So we need to keep learning quick. So as far as each phase, I guess we think about what talent we need in the organization. A good example of this would be when we were going from 50 to about 150 staff. At this point, I was very naive. I still am naive, but I was more naive then. And I thought, HR people, this is just like admin. I don’t need this kind of layer of complexity inside Crimson.

Jamie Beaton:
So we didn’t have any company values. We didn’t have a lot of the classic kind of onboarding procedures you might have. And so I was confused as to why we were hiring staff, and they didn’t feel the kind of deep connection to the Crimson mission that our first sort of 50 staff did. You know, I quickly realized that a lot of these staff, when they were joining Crimson, we weren’t really onboarding them properly, and they weren’t really seeing the values that were making us who we were. So we brought on board this incredible Kiwi exec called Penelope Barton. She came out of zero and Vend as our chief people officer, and she worked with me to put in the team to put in place a number of these values which have really remained consistent since that day. And, you know, that really resulted in formalizing a lot of our things like performance reviews, you know, our org structure. Back then, you know, there wasn’t even a single org structure grid in the company.

Jamie Beaton:
You know, the contracts weren’t even in a very consistent state. So she came and put in place all of that structure, working alongside us as we kept learning about this stuff. And then that, for example, has really helped us ramp up our scalability on the people side. So now, you know, I just got off a call last night, which was a newstarter call. So for Example, whenever our new starters join, we run these calls with the co founders, walking them through the crimson journey. Our key values, what we’re about, our key KPIs and goals for the year, to make sure everyone’s singing from the same hymn sheet. And really, you know, there is one crimson across the world. So that would be an example of, you know, a key evolution on the people side, you know, pretty important for us.

Paul Spain:
How much pain was there before you made that decision to employ chief people officer?

Jamie Beaton:
Yeah, yeah, I would say there was, you know, reasonable pain. It wasn’t, it wasn’t too bad, but I think it could have gotten worse because we were hiring really quick, right. So we went from about 30 staff to probably more than 100 really fast because we had, I think, closed either an A or a B round at this point. And so we, you know, had a lot of capital, we had big growth targets and we had to ramp up in a lot of geographies. So, yeah, there was significant pain. And also we were going across into many markets very quickly, which was a very intentional strategy. And so doing that while fixing these procedures, you know, it’s kind of like fixing the engine while rolling forward. So there was some pain there.

Jamie Beaton:
Also a lot of other, you know, I guess, key learnings. When you bring in a leader, they’re responsible for building their team. You’re taking a massive leverage bet on that leader. So in my case, you know, I was very naive about digital marketing, for example, also about technology. And so in the early days, I brought on some people who, you know, were very good at convincing me they were legends in the space because I didn’t really know much about. And then they went on to build very big teams that, you know, weren’t particularly effective. And. And we end up having to basically replace those entire teams and start from scratch.

Jamie Beaton:
And now we’ve got a really wonderful technology function with a really solid cto, same in the digital marketing side, but had to just go through those natural learning curves. As co founders, we weren’t familiar with these different domains, but now I think we’re relatively well across all the key functions. We’ve got really solid leaders in place and a really good exec team. You also mentioned advisory board. That’s been very crucial to our success. I think one thing we’ve done pretty well is bringing on board great advisors at the various stages. So notable ones would be, I guess recently, you know, John Key, obviously, New Zealand, but in the earlier days, a guy called Jason Lenger, he was on the board from Tiger Global, he was the second in command at Seek over in Australia before he left Seek to and he was an early employee, went with him the whole journey. Then he went to Tiger Global.

Jamie Beaton:
And so he was instrumental in guiding us through the process of many of the kind of org chart development, things we had to do, building our operations functions, building out, you know, financial functions, et cetera. Other great people would be like Janine Manning, who from the early days made sure that we were doing things like auditing through KPMG and stuff, which is really useful for capital raising and putting in place really good financial controls. So yeah, we have a long list of advisors to this day on everything from the education side to the data science side to the growth side. A recent one would be Ed Baker. He joined us, he was head of international expansion at Uber, sold a company to Facebook, was there for several years and invested in us recently and has been a great advocate for how we can grow cga, our new school for example. So I’ve always.

Paul Spain:
This is your Crimson Global Academy, yes?

Jamie Beaton:
Oh yeah, yeah, that’s right, yeah. Crimson Global Academy, New Zealand’s first online. Growing really quickly, which is really exciting. So these different advisors have been instrumental as young co founders who’ve been trying to learn fast alongside a very strong kind of full time bench as well, which we keep improving and growing.

Paul Spain:
Now you talked about some areas of the business there, such as it where didn’t pan out so well. What were the triggers that helped you realise that it was the war you had was broken in some way and then how did you actually go about sort of navigating from what you had to what you had decided you needed and how hard was that? Particularly if you’ve employed friends and people that you know outside of the business into those roles and then you’ve decided, hey, this actually isn’t really what’s gonna fly for us for the next stage of the business.

Jamie Beaton:
So I guess the good thing is we’ve always had a pretty meritocratic culture in the sense that we really focus on performance, delivering results, et cetera. So when I was going through this process, the key thing was discovering that the outcomes were not there. Once we discovered those outcomes, it was pretty easy relatively to have transparent conversations with those leaders and then mutually agree it wasn’t working and then evolve and fix the teams. But as far as figuring out the outcomes weren’t working in digital marketing, it’s really interesting. So it sounds like an easy problem to solve. You know, if you spend money on Facebook or Instagram, et Cetera, how do you track end to end, whether that is actually converting and it sounds pretty simple and everyone’s pumping money into these different online platforms, but actually the complexity of tracking things across, you know, eventbrite different landing pages, you know, websites with, you know, various tracking codes, you know, it’s pretty complicated. And so for a while you might, you can’t attribute necessarily your marketing spend to what’s happening on the revenue side. Right.

Jamie Beaton:
Once you have more visibility into that, you can make much more sound decisions and you can set, you know, roas or return on advertising spend targets, things like this for various teams. And so I guess we had a bit of first principles, intuition for okay, if we’re putting this much money into this, these are the kind of outcomes we should be seeing. We weren’t seeing some of them. And then secondly we put in place better and better tracking which kind of ultimately shows what’s happening and kind of if things aren’t really working in the engine room, it becomes very clear when you have all the metrics. So I think that would be kind of how we helped find those problems. You know, functions, backgrounds, advanced computing minds, applied math. Lots of our team are pretty quantitative. So if there are no metrics in a unit, you know, we quickly put in place metrics and then sort of find the truth, I guess.

Jamie Beaton:
And I think that metric driven culture has been quite useful as we’ve continued to scale and scale and scale, particularly going from 150 to 400. That’s been a much more smooth, I think ramp up because we now have those KPIs in place and you know, infrastructure which we keep improving, but I would say it’s pretty robust. And we’ve got a really good chief operating officer called David Fried. He was a really high achieving student from Harvard, top in economics there was, went to Goldman Sachs, really strong data scientist and then he’s been hitting up our charge on the service delivery team, putting in place these metrics and that plus Penny for example, building a pretty good infrastructure. So I really recommend founders that are trying to go fast, raise a lot of venture capital, they need to go, that’s their mandate, to make sure they have those metrics so that if you do take bets and stuff, you at least can measure the outputs and then evolve and iterate and learn.

Paul Spain:
And when you’ve gone for funding, how, how ambitious have you been in terms of what you’ve put on the table? Cause you’ve raised, how much money have you raised so far? Share on that front?

Jamie Beaton:
Yeah, we’ve raised ballpark, about 60 mil USD. So that gives you a sense of how much capital we’ve raised, which sounds like a lot in New Zealand, I don’t think is that much compared to Silicon Valley companies we benchmark ourselves to. And broadly speaking, I mean, we are ambitious. So with both our college admissions offering, you know, we see a massive market all around the world. Lots of very, you know, ambitious families that want to make sure their children equipped to succeed in a very competitive environment. That’s a very big market. And so. And it’s also across many geographies.

Jamie Beaton:
So we needed to raise capital to dominate that niche across. Across the world. My strategy was very intentional. I didn’t want to go into America or particularly China that much in the early days. I wanted to focus on geographies that were quite uncontested. So I went into places like Russia, like Korea, like Brazil, and, you know, built up our operations there largely. That kind of foreign push has been pretty instrumental to our success.

Paul Spain:
So, yeah, just sort of stopping there for a minute. How do you actually do that as a business that’s operating in New Zealand? Things are a little bit different now in terms of terms of travel. But when you started doing that, what did it actually, you know, what did it actually look like? What were the steps? And, you know, what was the hardest thing, particularly if you’re in a country where English isn’t the first language, the.

Jamie Beaton:
Key thing to be is pretty opportunistic, right? About opportunities as they come up, I guess. So let me give you a funny story. So I went to Thailand for this competition called the Global Student Entrepreneurship Awards, which is like a student challenge thing that we were competing in. I was on a boat and I sat and I was next to this lady. I thought she was actually about my age, you know, which is kind of funny. And I got talking to her and turns out she was about 35. She went to Harvard, did Applied Math and Economics, same program as me. And she had recently been working in private equity.

Jamie Beaton:
But I had some young kids and was looking for a bit of a transition. And, you know, she spoke Thai. This is in Thailand, by the way. And immediately I leapt on that and said, hey, do you want to expand Crimson? It’s going really well in Thailand. And she became our managing director of Thailand and did an incredible job of getting that, you know, off to market. I went to Singapore to visit my Singaporean team. And I was in the cafeteria of Yale nus, which is a Singaporean university that had partnered with Yale. I was talking to this sharp New Zealander called Andy Chen.

Jamie Beaton:
And he told me, hey, look over there, that kid over there, he’s known as a really entrepreneurial guy on campus, does a lot of the startup competitions, is really good at computer science. You might want to chat to him. So I got speaking to him and turns out he was speaking fluent English, but turns out he spoke Russian. And I said, oh, how do you speak Russian? He said, I’m half Russian, half American. And I said, what do you feel like about launching Crimson in Russia? And then within a couple of weeks, he had confirmed his gap year and he had landed in Russia and was expanding us over there. So for the uk, you know, my early director, Janine Manning, one of our first investors, she was moving to the UK and so naturally, you know, she had the mandate to start us over there. And so it’s about getting the tentpoles out with people that know the local markets pretty well, figuring out what’s happening. And in many cases, these early entrepreneurial people figured it out pretty well figured out playbooks that we learned from and work with them to succeed in.

Jamie Beaton:
And then we kind of continued to optimize and optimize the country manager hiring process till we got it down to quite a consistent profile and. And then we were able to ramp from 5, 6 markets to more than 20 pretty quick. I looked for inspiration from Uber, their playbook for city expansion. They have actually quite a systematic process for who they hire.

Paul Spain:
They do, don’t they? And it’s not necessarily. Well, I don’t know all the ins and outs of their model, but it seemed as though it doesn’t necessarily have to involve a huge number of people actually to get a new operations start.

Jamie Beaton:
That’s right. That’s right.

Paul Spain:
So I actually think they pulled out of New Zealand was the last I heard, in terms of, you know, their, you know, boots on the ground and having an actual office here, as most of that’s now being run out of Australia.

Jamie Beaton:
We actually recently recruited the very talented man that launched Uber in New Zealand in parts of Australia, called AJ Tills. He’s our chief marketing officer for Crimson Global Academy. He’s been a real rock star on the team, which is very exciting. But yeah, so Uber, they were able to go all around the world super fast. And so we looked at this model and we really seek to replicate it. We brought up a growth operations team that was HQ here in New Zealand, and they were responsible for things like setting up legal entities, figuring out how on earth do you register in Russia or Thailand, things like this, you know, getting the early digital marketing going in those regions, onboarding the country managers to figure out, you know, how to engage with that market. Yep. So that was some of our tactics that we used.

Jamie Beaton:
We made some mistakes. We went into India in 2016, you know, we threw the sink at it. Not much cash, but a lot of people like Fangju, Aisha, Andre, we all hopped on the plane to India, brought on board this guy Adam Joseph, who I knew from Harvard. He was an Indian American guy, which turned out to be a bit of a problem because an Indian American does not know much about India sometimes, but he’s a super talented guy, you know, great friends to this day. So we went into India, I think after six months, you know, the revenue we made could hardly cover, like our food expenses. So we pulled out of there and focused on much more exciting markets.

Paul Spain:
I imagine in India where there are lots, lots of people seem to end up in US universities from India that maybe a lot of that was, you know, the models were already reasonably established and so that would have maybe made it a harder market than others to get into.

Jamie Beaton:
Yeah.

Paul Spain:
Were there other aspects that you thought were, you know, that you learned were the reasons that it was. Was tough there?

Jamie Beaton:
I think, actually. So Crimson around the World is really known as the premier place to go for college admissions guidance, at least now. So we’re partnered with U.S. news, the major ranking group in the U.S. times Higher Education, the major group in the U.K. and many of the world’s top schools, like Gems, Dulwich International, use us, as well as schools like Eaton Harrow, et cetera. We’ve done a lot of talks in, so we’re generally premium and we’re known for the best quality. The challenge in India, when we entered in 2016, some of that wasn’t built yet, but also the price points locally were very compressed.

Jamie Beaton:
So what we could provide in India, somebody in China would pay 10 times the price for literally 10 times the price. And so, you know, it was very hard with a USD cost basis to provide services economically in India and we didn’t have the network to get into the particular schools and things like this that, you know, were very relevant to. Yep. So that, that was some of the kind of reasons why it wasn’t successful. But, you know, for every loss we had, you know, four or five wins. And so, you know, that’s been really exciting and ultimately gave us the kind of competitive positioning we needed to go on to continue to grow, raise more capital, launch new units. And so looking back, that quite bold move to expand globally fast was one of our key early moves that I guess has been very successful.

Paul Spain:
Now I’m very keen to see New Zealand businesses that are growing their export base and growing globally. Certainly you’ve had success in that international growth, but how have you decided where it’s appropriate to send and set up a team versus sort of operating it from here? You know, virtual offices versus physical offices. How do you juggle that mix? You know, what’s important for you? For instance, you know, with some things you probably, you know, a lot of businesses will want to have a local Google listing. So you have to, you know, if you don’t have, you know, people in a physical office, you’ve got to set up some sort of virtual office. So people are googling. Oh, yep, there’s something here and they call. But obviously there’s been a real element where you have sent people and set up those physical locations. So how have you figured that out? Obviously having significant funding, really important to make that happen, otherwise those things aren’t sustainable unless you can be turning a dollar very, very quickly.

Paul Spain:
So, yeah, what’s been your thinking there?

Jamie Beaton:
Yeah, so there are a couple of different types of offices for Crimson. There’s basically offices in which the main role of the local sales and marketing, right, Building demand amongst families that can really benefit from Crimson services. And so all of the headquarter operations, the service delivery, our online platform, all the mentors, that’s pretty centralized. And so the team just has to go out there and essentially onboard students and localize parts of the offering for that community. So that’s the simplest type of office. The next one is an office which has some kind of global functions because we need that office to be a hub for our service delivery. So a good example would be, for example, the uk, where we have lots of tutors from Oxford, Cambridge, London School of Economics, these other great skills in the UK and the US too, where we have just a huge amount of mentors in the U.S. and so we need personnel in those teams that can actually do the supply side as well.

Jamie Beaton:
And then the other, you know, the final level would be like the teams in which we, you know, have real headquarter functions such as technology. So in China, where my co founder is currently living, and I was living prior to Covid, which spun the world around a little bit, we have a full engineering team as well as, you know, service delivery personnel and then our local sales and marketing efforts as well. And so we think about, you know, first of all, how big’s the market? Secondly, what’s the talent density like for, you know, those functions like technology? And then in our case, are there good universities where we can source talent from for our mentor pool? You know, if you’re, say, in the middle of Brazil, there are some good universities, but probably our mentor network. But if you’re sitting in the middle of, say, us, man, you know, there’s incredible universities there for our mentor network. And so we’re going to go hard there. Same as, for example, in China. There are great schools like Tsinghua University, we can bring our mentors for that are pretty globally relevant. So that’s kind of how we think about, you know, the market.

Jamie Beaton:
The other dynamics to think about would be like regulatory complexity, you know, how complicated is it to operate there? How does it affect our global kind of headquarters structures? You know, there are other considerations, but those are the primary considerations that I first talked about.

Paul Spain:
Now. Finding this, you know, pool of mentors and, and so on around the world. How have you gone about doing that? What are the things that have worked well? Where are the things you’ve maybe tripped up a little bit along the way and learned some lessons? How’s that played out?

Jamie Beaton:
Totally. So I guess at the beginning of Crimson, as I mentioned before, I brought on board a lot of people that I really respected from high school that were just rockstar academics that I really respected and looked up to. I also brought aboard many of my own tutors. So for example, I had this legendary math tutor called John Jiang. He helped me, you know, now further maths and university math and stuff. And we brought onboard in the early days to tutor other students. I think of Steve Walker, who was my head of department at King’s. And, you know, a lot of these schools, there’s a big variability in teacher quality.

Jamie Beaton:
But particularly Steve, I was amazed by him. Went to Cambridge University, was my tutor, helped me score top in the world in English literature, you know, great mentor of mine, brought on board a lot of those people as well. So I first hoarded kind of all the talent that I knew in New Zealand. And then when I got to Harvard, you know, really went on a bit of a recruiting spree. At one point, you know, all my roommates were working for Crimson. Two of them were doing video work, the other rest were doing tutoring. I would join different student clubs and then indirectly recruit people on campus. And there was definitely buzz building because we were raising capital, growing quick.

Jamie Beaton:
And so a lot of people would be hitting me up for these different tutoring opportunities. We had tutors on campus that Were, you know, paying for, you know, significant amounts of their expenses, doing this tutoring online through Crimson. They were telling their friends the word was spreading. So given that Harvard’s not a very big community, we were quickly able to get hundreds of people on the platform across Harvard. And because Harvard has a certain reputation, when we had that brand as having a lot of these kids from Harvard that were having a great time on our platform, other kids from other schools then got quite interested. And so we would then set up campus ambassadors at Yale, Princeton, the other top schools, and then start getting those kids coming on board. We’d put up tutor recruitment websites and stuff and we’d get lots of organic applications. Then we also had the incredible source of our students who would then graduate, get into university, then become our mentors.

Jamie Beaton:
And I love that because we train these students in our philosophy, in our different tactics for how they can be really effective students. And so they go through it, they have this amazing outcome getting into a great university. So they really love Crimson. Then they go become a mentor and they can really inspire the next generation. So there are a couple of different ways we got that pull. We learned pretty early on that building a really strong organic brand at these skills is important. So I personally went to Harvard and then I went to Stanford, then I went to Oxford, Now I’m Yale. And in each of these communities, you know, I personally go out and build a lot of relationships to get, to get that flywheel moving and then it, you know, sustains and sustains.

Jamie Beaton:
So we learned early on that like paid acquisition of tutors, etc is not a good strategy for us. That’s what companies like, for example, VIP kids in China has to do. They’ve got to pump lots of money online marketing to try and recruit like English tutors. And but for us, because we’re trying to recruit these premier people from these great institutions, the word of mouth virality is very important. And then we really care about their experience. So building good technology that makes it easy and efficient for them to work, giving them students they’re going to love. We’ve got a tutor student compatibility algorithm we use, which is part of my PhD work, to match students and tutors effectively. Things like that, make sure that, you know, when somebody logs online for mit, they have a rocking time and they tell their friends and the thing keeps moving.

Jamie Beaton:
So that will be a couple of tactics on the recruitment side. Now, recently we’ve had to evolve because of the Crimson Global Academy where we have to recruit not only tutors, but also more and more Teachers. And so we started by, you know, bringing on board the biggest heavyweight we could in New Zealand, which was John Morris. He was the head of Auckland Grammar School for, you know, more than 20 years. He’s been a teacher for 40 years. He’s a onzm in New Zealand, so definitely without a doubt the most respected headmaster in the country. So we brought him on board, which is a good start. And then we had more than 600 applicants for about 30 roles for our school.

Jamie Beaton:
And so while many schools have teacher shortages, we’re able to get top teachers from, you know, Kings, Maclean’s, Westlake, you know, Rangiuru, all these different places on board quickly and then get more teachers from the uk, other geographies. So I think starting with quality, just like we did at Harvard, and then with John Morris here, that creates a snowball that then, you know, makes everyone quite excited to be part of that community. So there are a couple of tactics we used on that side.

Paul Spain:
What challenges did you have, you know, along the way in that process? Were there, you know, there’s always, always some learnings and you know, things that don’t go so well. Tell us about some of, you know, some of the tougher things.

Jamie Beaton:
Yeah, it’s a great question. I would say tutoring has actually historically been a real strength of Crimsons, but a challenge that I could think about would be, you know, if you think about tutors, they’re going to have exams at pretty similar times and when you have waves of tutors having exams while their students are having exams that can create some irregularity because they might be like stressed about their own exams and, and unable to do as much tutoring for the student just at times where they’re most needed. And so for example, timing that seasonality is important. And so in certain functions we move to more full time staff to adapt for that. So if you think about Uber, when they launch a new market, they often pay drivers to do almost full time on the road, even if they don’t have demand, to make sure they are locked in capacity so that the rider in this case has a good experience. So for us at Crimson, sometimes we have to make these different hacks to, you know, buff supply, I should say in a certain time of the year. But at this point we’ve got a really deep network of tutors so it works quite well. But that would be kind of one move.

Jamie Beaton:
So we switched, for example, our strategy function from being part time contractors to being significantly full time to help really make sure that was super robust et CETERA and then also as another example, when kids apply to college, one of the key deadlines is January 1st, which is the day after New Year’s and it’s Christmas, et cetera, Boxing Day. And so lots of students, you know, in the early days, if they procrastinated, they would be trying to get these essays done right, when their mentors would be, you know, like in the middle of eating their, you know, turkeys or something with their family. So we need to, but we needed to basically set in place a lot of deadlines so that students would get these essays done far earlier. And so, you know, it’s better for the students stress level. And then our tutors can, you know, have a nice Christmas Day. So there are some different hacks we had to work through over time as well.

Paul Spain:
Yeah. And have you built some technology platforms to help, you know, support these processes and make it easy to get what you need, something that really is a really good fit for the outcomes that you’re looking for without just trying to use off the shelf tools that may not be always relevant?

Jamie Beaton:
You bet. So in 2017, we launched the Crimson app and we’ve basically been heavily investing behind this. So it really makes student and tutor experience really efficient. So on the tutor side, you log online, all your sessions are tracked. After every session, you fill out a session report which, you know, gives us an update on how the student’s progressing. The student reviews the tutor experience as well. The parents can access analytics and reports on how those interactions are moving. The parents and tutors can access score reports as well for how the kids testing is going.

Jamie Beaton:
And then the student can log into all these other resources on the platform too. And then all of that’s synced to invoicings. The tutors can then quickly get paid efficiently so we can process large numbers of invoice payments around the world, you know, fast. And then there’s also community functions as well, where people can interact with one another. And then there’s secure chat, et cetera, which is very important for child safety. So yeah, we’ve gone pretty hard on those features and it’s been pretty essential for us. And we’re adding more and more sophisticated features. So for example, we’re adding some different kind of algorithmic analytic engines so that, for example, say you and I are speaking in a class, there’s five of us in a classroom, and you’re not speaking very much, or actually you’re speaking a lot.

Jamie Beaton:
And that’s a change because last week in economics you weren’t as Engaged. And we can, you know, really drive out those trends and engagement from, you know, student to student to student. And also how the teachers, you know, classroom style is evolving as well, and use those analytics to inform coaching sessions, pressure development, and also, you know, reports for the parents too.

Paul Spain:
And so because these are happening in an online context, which is revolutionary, you can actually draw all that data that, you know, in a normal classroom you wouldn’t have unless you, you know, unless you had some, you know, microphones, you know, auditing processes. So that’s fascinating.

Jamie Beaton:
Yeah. And think about this. So when you go through school, how much data do you actually know about, you know, your own high school performance? You do a test every so often, you do some exams, but you sit in hours and hours of classes and you don’t know, you know, how you’re engaging, how you’re participating, what that looks like compared to other successful students in the online schooling world or the online tutoring world. You know, we have all of these data sets of high achieving kids and, you know, what their engagement metrics were like. And then we can see when a child’s not syncing with those trends. And we can do that by geography, by personality, et cetera. And so the online analytics, I think, will be quite revolutionary in schooling. Even students that are doing part time online schooling, the amount of insights they’re gonna get from every hour they spend online compared to the physical world in which nothing is recorded or analysable, will be quite profound.

Jamie Beaton:
So that’s a good example where technology gives you quite a big leg up in the online world.

Paul Spain:
And what do you do in terms of measuring your customer satisfaction, measuring how parents are feeling about things, how students are feeling, what does that picture look like? And then how do you utilize that information?

Jamie Beaton:
Yeah, it’s a really good question. So there’s broadly two types of metrics. One is satisfaction, one is outcomes. Now, one of our values at Crimson is student outcome obsessed, which basically speaks to the fact that ultimately, you know, you can make a child happy by giving them a donut. But what really matters is, you know, how the outcome’s improving. And we strive to, you know, within a safe environment where they’ve got mentors, they’ve got mental health support, et cetera. But we don’t want to make things easier because these are formative years where you want to be growing academically.

Paul Spain:
Sure.

Jamie Beaton:
So a couple of metrics. First of all, net promoter score, you know, easy ones. So students and parents regularly, various key chickens do these NPS surveys and they give us a Sense of, you know, how the, how the family is feeling. And there’s benchmarks across the education industry within our particular sub sector of the industry and you know, the broader satisfaction scores. That’s one. Then there’s the, you know, micro feedback after every lesson which is kind of like the Uberstar rating, you know, 1 to 5. And then that’s often quite binary data with lots of fives and occasionally some zeros. And then that, that is really useful data to collect and analyze as well.

Jamie Beaton:
Then there are extra layers of data. We look at, for example, if, if you’re my tutor and I’m your student, how regularly I book with you, if I, if it’s at my discretion, is a really good indicator for engagement. Right. So those types of metrics, so that’s some of the satisfaction metrics. Then on the outcomes we do pre test diagnostics and people come on board around what schools we think they can get into based on their current stats and also how they’re currently looking in, for example, math and English. Then we can look at the final outcomes. What do they get into? What schools do they get into? How did that sync to their potential when they first started? And then what value add is Crimson added, which I guess we call the alpha, which is a term from finance. So we look at those metrics at an individual per capita level and then we look at this as an aggregate.

Jamie Beaton:
So we’ve got company goals like how many students get into, you know, top X university and then what percentage of kids get into one of the overall schools, Things like that. And then for example, within our school we’ve got specific targets for, you know, what percentage of kids get certain grades, A, A, et cetera, what’s their baseline improvement rates, things like this. So we’re taking quite a systematic approach to this, which you don’t really see in traditional schooling that much.

Paul Spain:
Yeah. And then once you’ve got that data, how do you act on it? Right, you’re looking and there’s whatever it might be, too many lower scores in one area or another. Or do you track that back to the individual tutors and so on that are involved and then that plays out in terms of their role within Crimson, how does that look?

Jamie Beaton:
Totally. So we do a lot of filtering before people come onto the platform. They’re coming from the world’s best schools. Teachers from really great backgrounds, they go through a rigorous interview process, then a lot of training. So that screens. So basically the people on the platform generally are high quality. If we’ve got some bad apples and they get some bad reviews, we can, you know, I guess boot them out pretty quickly. But generally speaking, we can use this data to inform things like pay reviews.

Jamie Beaton:
We can use it to inform what students we match them to in the future. We can also use it to inform session cadence. So, you know, our kids performing better from 20 hours of this or 40 hours. You know, should the student be in a one on one environment or a small group environment? How does that look? So we can make those tweaks. We can also optimize our student tutor ratios across different parts of the business. And sometimes that was also tweaked by geography based on some cultural expectations. So for example, funny story for you, when we run an event here in New Zealand about say, overseas study, we might in a 100 person room get sort of 70 kids, maybe 20 mums, 10 dads. In Korea we get 99 mums and 1 dad, no kids.

Jamie Beaton:
And you know, over there the expectation’s really on mum to go ahead and do a lot of research and make these serious education choices. They basically go through the whole process and they let Johnny, little Johnny know, okay, this is what we’re doing. And then as you can imagine, in those communities, the parents want intense updates on how things are going. And so we’ve got to tweak some of our ratios and some of our offerings based on those expectations. Now we don’t fully just do whatever the local market wants because we have a very specific philosophy as to what it takes for success. Parent engagement levels, student engagement levels, what the teacher should do. So we’ve got that crimson quality with some of those customisations by geography. So that’s kind of how we think about it overall.

Jamie Beaton:
And a lot of these things, particularly for online high school, come out of my research from Oxford. I spent the last three years doing a DPHIL in online schooling on the Rhodes program. And my focus has been on what drives student satisfaction, student outcomes and online schooling. You know, doing things like randomised control trials, studies of the literature. And so that informs, you know, some of these tweaks we’re making in our school. We try and be as data driven as possible to ultimately help the student thrive.

Paul Spain:
Yeah, I guess there’s, you know, there’s a huge amount of information that you, you can draw and then it’s working out what to do with it, what to do with it, and, and what are the things that really matter the most. But it’s certainly, you know, it’s, it’s gotta help that there is plenty you can measure yeah. And, you know, there are some pretty, you know, clear things that are important for I’m sure most people that are working with you. That’s good. Now, looking. Looking at the Crimson brand, how did that name come about? And how did you decide what the Crimson picture needed to look like from a brand perspective?

Jamie Beaton:
Oh, that’s a great question. Yeah, that’s funny. Okay, so as far as the name Crimson, I went to high school at King’s, and then I went to Harvard. You know, both, I guess King’s is more like maroon. And then Harvard’s got the color of crimson. And many of our first mentors, you know, were all from Harvard, so there was obviously that connection. And then also we really were looking into the connotations of words, which is like a Steve Walker, my old English teacher, you know, one of his favorite techniques. And Crimson’s quite a bold, audacious color.

Jamie Beaton:
And for lots of our students, you know, they’re leaving these foreign countries, landing in America back in 2013, 2014, without much support, and then, you know, they’re taking quite an audacious, you know, not risk, but, you know, bet on their ability to thrive in this new geography. So I like the kind of boldness that comes with the color. It’s quite distinctive. So that. That was some of the things that flew into the, you know, Crimson. And then initially we were called Crimson Consulting before we changed. I liked the alliteration of the C and the C, although now a Crimson education, which I like better. So that was Crimson and then the logo.

Jamie Beaton:
First of all, design is not my strength and not the strength of either of my co founders. So our first logos were a little bit funny, but we had this really talented fellow who came along called Byron. He. He was our chief designer for several years, leading kind of architecture student here that went into technology, user experience, design. So he worked through the logo with us, and we set it on the sea, which is kind of tilted up, with some books on it, which obviously reflect learning, and the tilting up reflects ambition, looking towards the future and what you can achieve. So that kind of is where the logo came from and the name.

Paul Spain:
Cool. Now, we talked before challenges. What other challenges can you sort of share with us from your journey, from the story, and how have those things helped shape how you move forward? Cause it’s so often through the pain points that we really learn, and often that’s the best learning to share with others, so hopefully that they don’t have to go through the same pain points. Right?

Jamie Beaton:
Yeah, totally. That’s a great One. I guess I can think of two pain points. The first pain point is that for many years of Crimson, my co founders and I were going through university while building this. And so we had more constraints than probably the traditional entrepreneur has. So Feng Zhou was at Canberra University in Australia. He had to hop on a bus every week, go to Sydney, be in the office, go back for, you know, for some compulsory classes. You know, I was at Harvard, having regularly traveled for this.

Jamie Beaton:
China was at University of Auckland, you know, really engaged there as well. So what that meant is that our ability to travel for significant parts of the year was constrained. And also we were all in different countries. Now, that made it challenging from a, you know, traditional kind of culture building perspective, right, for our staff in a certain geography because they would say, never meet Fungzhou for a long period of time or see me, you know, four times a year. But what it drove us to do was to, you know, really articulate our culture well and articulate what made Crimson. Crimson. And ultimately being good at remote work made us more scalable, which really helped as we kind of opened all these foreign operations. So I think the constraint initially around, you know, ability to build culture, ability to, you know, know what everybody was doing, drove us to, for example, have a really focused culture on KPIs.

Jamie Beaton:
You know, you don’t need to watch somebody and know they’re in the office if, you know, they’ve got clear metrics of success which they’re held accountable to, rewarded for, you know, after every three months, things like this. So that was one key learning. I think some of the pain that came from those, you know, I guess, balancing acts. And then what drove Crimson to come, probably another one would be around media. So Crimson’s always had pretty strong media coverage around the world because we have these students like, say, Samil Singh grows up in Hamilton, went to Hamilton boys. We help them with, you know, AP computer science, some A levels, got into Harvard, many other Ivy League schools, got over to Harvard and then got into Y Combinator, the top, you know, business accelerator. Now he’s, you know, in Silicon Valley cranking stories like that that are so inspirational. Six years going from Hamilton to Silicon Valley, that really, you know, fascinates people and I think inspires many students, which we’re really happy with.

Jamie Beaton:
But because of Crimson’s fast growth, we also, you know, attract, you know, very fair, reasonable, you know, scrutiny from all these different participants. And so I remember, for example, early on I acquired this company and it was, you know, for a tiny amount, and we were going through this court process and one of my legal team advised that we file for a suppression order. So basically the court dispute, you know, just, I guess, is handled within the vicinity of the court so there isn’t media scrutiny. That sounded like a smart idea. And then I learned what I refer to as the Streisand effect. So what this is is Barbra Streisand had this house in, I think, Los Angeles, and she was a very private person. She didn’t want, you know, her house everywhere. So this journalist took a photo of it, put it online, and she was very annoyed by this.

Jamie Beaton:
So she basically filed to, you know, restrain that. And then cause of that, there was all this coverage of her, you know, filing the claim. And so the photo of her house just went everywhere on the Internet and you can find it easily today. So the Streisand effect is this phenomena online where if you, you know, try and cover something in the Internet up, you know, it will just become more viral. And so I guess a key learning from that is it pays to just be open and authentic and transparent with things, particularly if they’re not a big deal. And that makes it a lot easier. So that’s been really a guiding principle for us in recent times. I guess it’s an important one for young entrepreneurs to know that it’s actually totally fine for organizations to cover your ups and downs, challenges, et cetera.

Jamie Beaton:
People are really open to respect the fact that it’s not always good and easy and there’s sometimes disputes and challenges. So that would be an interesting learning I had. The Streisand effect.

Paul Spain:
Yeah. Yeah, it’s fascinating. And the reality is that every individual, every organization will have its ups and downs. You talked about transparency there. How much transparency do you have within the business in terms of what you share and don’t share with your team? There seems to be quite a lot of variation from. And obviously where you’ve got sort of publicly listed companies, that’s quite different from a reporting perspective to private companies. You’ve got a number of investors, so there’s obviously data and so on that you have to share there. But what do you share in terms of objectives and key results, sort of company wide and so on.

Paul Spain:
What does that look like?

Jamie Beaton:
So within our team, we really believe that empowering the team to be entrepreneurs and to help build the next frontier of Crimson requires them to have a lot of visibility into what’s happening so they can make good decisions and they’ve got the context that we have. Because two people with different Contexts can think radically different things about the same scenario. So we have a monthly all hands call and we have very clear company KPIs for every year and actually every half. Everything from student outcome goals to revenue metrics to cash flow targets, et cetera, that are quite transparent with all the various aspects. We then do some work to kind of explain different financial metrics so people that aren’t familiar with finance can determine kind of what this means and the implications it has and then we all rally towards those goals. So in the early days I’d say the idea of sharing some of these goals to me seemed kind of counterintuitive, like people didn’t need to know this and so I was much more guarded with it. But then now it’s wonderful. We share our employee engagement statistics, we share our revenue, share all the different goals, share all of our student success, which everybody’s really excited about.

Jamie Beaton:
So that would be my approach. Now you’ve got to be a bit careful because sometimes those statistics, you want them to be empowered within your team, but then you don’t want for example, your competitors to have all your different goals. Right. So there’s a bit of a balance. But we trust the team so we share that openly within the all hands formats, et cetera. And I think generally as you get bigger and bigger, you kind of have to do that. So there’s a limit to how much kind of guarding you can do, particularly if you aspire to be a company of scale and significance.

Paul Spain:
Yeah. How much of a challenge was it for you to sort of get through that, knowing that really any private information soon is public information. Right. At one point in time or another or it can be. So, you know, there’s no guarantee that anything you say in a particular context won’t sort of end up outside of the business. Have you sort of had to work in quite tight sort of non disclosure agreements and you know, and processes to help with that? And yeah, like, I mean going from, you know, one end of the scale where it’s like, okay, well this stuff’s all private and it doesn’t matter to the team to you know, where you’ve landed. And I’m sure there are, there are variations beyond that too. Walk us through that.

Jamie Beaton:
So I guess if you think about, I’ll give you a fun example. Take Facebook, right. So they went through some challenges during the 2016 election when there was a lot of scrutiny around, you know, their handling off, you know, Russian hacking, etc. Every time there was a company, all hands call whatever zuckerberg would say would get leaked to all of the media. And so for him, basically, you know, he had to be entirely aware that whenever he spoke, that was just public information. Essentially, that was the test probably had to operate with. And so I think that, you know, the earlier you can get into a state where you just assume whatever you say, you know, everyone from your, you know, your grandmother to your customers to your parents to random stakeholders in the media would cover the better, I think. And we’re not in a particularly sensitive industry in terms of things like financial data such that it really is that big a deal.

Jamie Beaton:
What we really care about is student privacy. So protecting students, names and information, things like this, child safety standards, which have a very high bar. So that’s the area we’re kind of hardcore on. But as far as other areas of our strategy, et cetera, we share within the team, aware of the fact that there’s some risks involved, but we think net net it’s worth it. I think if you were like a company like Palantir or something, and, you know, you have a lot of scrutiny around you and you know, how, you know, your clients, et cetera, for various, I guess, political reasons or not, maybe you’ve got to be more careful in that environment, I think. Or if you’re like a venture capitalist and, you know, your deal terms for a certain company have to be quite private, I think it’s quite different. But for operation like us, we serve students and families and parents, and, you know, what we provide is pretty straightforward. It’s not so much a big deal, I think.

Paul Spain:
Yeah, yeah. Okay. Now let’s talk about the next phase of the business, because you looking now at a younger audience, tell us what this online high school looks like.

Jamie Beaton:
Yeah, sure.

Paul Spain:
And how it came about. How did you make that decision to adjust the business or add this new area?

Jamie Beaton:
So rewinding all the way back to high school, right? In high school, I did 10 A levels, and most students were three or four, which meant I had to do many subjects kind of outside of school with self study, things like this. And I thought it was quite unusual how I had to go through school where, you know, this year I do this level of math this year to this level of math. And I felt quite constrained because in certain subjects I wanted to go faster. And so that was a personal observation I had. So when we first kicked off Crimson, I would recommend many of my kids take extra subjects. We help them, you know, enroll in private exam centers, things like that. And so I think about that boy, smile that I just mentioned. Or take Zonghuang.

Jamie Beaton:
Zong grew up in Maclean’s College. He now works for Google’s Waymo team in Silicon Valley. He went to Caltech and he took, I think, six or seven different A levels when he was in school. Yeah, now that was in the back of my mind. And then fast forward. We had many kids doing these subjects through tutoring, online, et cetera. And then when I went to the us, I saw the online high schools there. For example, there was an online high school that Elon Musk sends his kids to, and they were achieving incredible academic results.

Jamie Beaton:
And I thought, wow, this really syncs with what I’m seeing at Crimson across all these learnings. What could we do with this? So then that got me thinking and then triggered me to really create, you know, Crimson Global Academy, our online high school. So this is a fully registered high school, registered in New Zealand. And in America, we teach the British A levels as well as the ap, the Advanced Placement, the American curriculum. So we’ve got students from Keri Keri to, you know, Rimiera to, you know, Christchurch that basically are hopping online part time or full time. So part time you go to your physical school, then you take extra subjects outside of school, after school or on the weekends, and you’re part of our global community. There’s great teachers, the supercharged learning environment, or you go full time and this is your full school experience. All of our extracurriculars and other aspects included.

Jamie Beaton:
And that’s really what we’re building at the moment. So we launched that school earlier this year, about six months ago or so, and that’s really gone gangbusters. So past a lot of our growth expectations, we’ve now got kids from more than 20 countries. As I said, it’s headed by John Morris and also Mark Phillips, who came from McLean’s. McLean’s, the school we help guide the Ducks to get into Harvard five years in a row. Incredible student community, very ambitious. And we knew he was a bit of a rock star, so we brought him on board and then many other top teachers that have come out of these great schools. And the wonderful thing about an online high school is you’re no longer constrained to meeting kids that just live near you or teachers that happen to live near the school.

Jamie Beaton:
Our teaching pool is from the world stage, and our students are sitting in classes with kids from Russia, from China, you know, from Auckland, and learning together and also at this faster, accelerated pace. So about 45% of our kids are learning at an accelerated pace. And My goal is to make sure that any Kiwi anywhere in the country can tap into an education that will legitimately make them competitive enough to succeed anywhere in the world stage. Because there is a bit of an achievement gap between various education systems around the world. If you compare, for example, many of our Kiwi schools to schools in Singapore or Korea, there’s big gaps. And so I want to make sure that you can move to New Zealand and really be comfortable with the environment you’re in. And so CGA is really the next evolution of Crimson, and we really hope it will kind of broaden the access to our really, you know, quite powerful education system to more families.

Paul Spain:
And I guess it gives you a pipeline as well of, you know, of students to help them, you know, get into Harvard and the like.

Jamie Beaton:
Totally.

Paul Spain:
Yeah.

Jamie Beaton:
I mean, we’ve got students who are, you know, age 11, jumping into crimson Global Academy, who have the academic ability to take subjects normally you do when you’re 14. They come to Crimson. That really unlocks their potential. In February, we’re rolling out the pre igcse, which basically means, you know, even before you’re ready for one of those qualifications, you can start learning, getting ready for that as well. So the goal is really to make sure that, you know, when, you know, families have that ambition, when the child is excited, we have, you know, the school option for them, you know, anywhere. So this really throws at the idea of school zones. You know, anywhere is a, you know, Crimson Global Academy zone. And so you don’t really have to worry about, okay, I’m gonna be on Waikiki island, or I’m, you know, moving to a farmer now from Auckland, or, you know, I’m in Kauai.

Jamie Beaton:
You know, what are the schools near there? You have access to this anywhere, which is really exciting. So that’s kind of how we’re thinking about the Global Academy.

Paul Spain:
Yeah, Look, I think it’s fascinating, and I always like to see how people are applying technology to make things better and do things in a smarter way than have been in the past. But I look back to my own childhood. There was a window of time where my family decided, hey, we’re going to travel. We’re going to spend a bit of time, in our case, going back to the UK where my parents and my brothers were born, and visit some other places along the way. And they weren’t so keen on it being a short school holiday type trip. This was something we were gonna be doing over a period of months. And so at that stage, a correspondence school was something you could tap into. I personally really enjoyed the experience.

Paul Spain:
But there was an aspect of accelerated learning even with us being sort of sent these booklets and bits and pieces where once you stripped away the other 20 odd people within the classroom and it was actually, you know, just you, you know, working on the things that a parent there to provide input and so on. But, you know, really, really good resources. I think we got through our school day kind of in the morning. Right. So by lunchtime you had the rest of the day available. And yeah, look, I’m, you know, I’m at a. Probably more middle of the road. Not someone that was, you know, expecting to head off to Oxford or anything.

Paul Spain:
But you know, if that applied to me in that context, I can certainly understand the value of what you were doing. In fact, you know, I remember a discussion with in one of the TV radio newsrooms in New Zealand when it was disclosed that, you know, the prior government was looking at a change to the education system that would allow people to do online learning. I was chatting to someone that was sort of throwing their hands in the air and saying how ridiculous it was and you know, thinking, well, there are technological resources that actually, you know, can be very helpful and get that mix right even better. So I think it’s, you know, it’s a great concept. I’m sure that there are lots of challenges to take that from. You know, what have you got two markets where it kind of operates on the, maybe a similar level to attending a local high school? Is that kind of where you’re at at the moment with New Zealand and the do you have to go through a certification process? What does that actually look like to be able to tick that box and for the state to say, hey, yeah, you can go to that school and not turn up to a normal local high school.

Jamie Beaton:
So because we’re accredited in both New Zealand and the US and we have an international license, we can actually take kids in any geography. Which is why today in our classes we’ve got kids from more than 20 countries. So today we’ve got learners from Costa Rica, from Russia, from Japan, from China, from New Zealand in the classes. So, so now we’re fully accredited. That was a massive ordeal, but we got through that and now it’s really exciting.

Paul Spain:
So you don’t need to do other markets. Like if somebody in Singapore wants to attend, can they do it full time or does it have to sit alongside a lot of.

Jamie Beaton:
Usually they can do it full time, sometimes they have to do it part time. But in most geographies full time is fine because the qualification that we’re teaching is A levels, which basically is the most popular qualification in the world. Schools like Westlake used to do it, King’s College, you know, Auckland Grammar, John Morris actually brought A levels to New Zealand, our executive headmaster. So this is kind of the next evolution for him. So basically A levels are recognized by all the major universities. I used A levels to get into, you know, most of the top schools in the world. So that is, you know, kind of a world class qualification that really sits above many of these national qualifications. And then the American curriculum, AP is also really exciting.

Jamie Beaton:
You know, we’re the first school in New Zealand to, you know, even offer the ap, which is really cool. Previously you could never tap into that here in a big way. So at this stage we’re fully good to go. How this looks like is you hop into a live class with typically six to 12 students. You’re speaking a lot more in that class than a physical classroom because you’re having to screen share, debate, engage. That’s part of your grade. The teacher’s holding you accountable. And so a lot of our families are telling us that the kids are actually growing a lot faster, not only from an academic standpoint, but from a social confidence argumentation, debate, content engagement perspective as well.

Jamie Beaton:
You can annotate, work with multiple kids on a math problem on screen together and then also watch recordings and have mum and dad learn from those statistics of how the child’s participating. So that’s happening right now and it’s already really exciting. Technology becomes very powerful when all the stakeholders in the current system are made better off by this. So today this gives parents a lot more visibility into schooling than they’ve ever had before. It gives students global classmates faster pace, a lot more choice and these top curriculums. And then it gives teachers the ability to work from anywhere and also be amongst really inspiring peers all the time and be tapping into really exciting kids and have a lot of flexibility. So this is significantly more exciting for all the stakeholders than a previous physical school. And I think it’s kind of the recipe for why I think this can be quite significant.

Jamie Beaton:
So the schools of 2030, the schooling infrastructure of 2030 is inevitably going to have a lot of families doing at least part time online learning and some kids that are, you know, quite significant doing full time online learning as well. And our school today, about 70% of kids are part time, 30% are full time. So the average kid still engaged in a physical school using this to accelerate. But we are Seeing, you know, a lot of full timers across New Zealand as well. So I’m really excited about this because I do think education’s something that everyone in the world experiences, but it really hasn’t evolved in a long time and it requires frankly a lot of push to make it evolve. But I think we definitely have the push and this is really moving quick. So that’s kind of how I see this playing in for, you know, parents across the country to access this quite novel education system.

Paul Spain:
Great. Well, I’m really interested to see how it evolves and certainly stay tuned and maybe some further discussion on that down the track because I agree there are a lot of aspects of our education system that haven’t really moved too much. And you know, we are in a very much in a technological, digital age where, yeah, we should be taking advantage of the technology more. So looking forward to seeing how it evolves. Anything else you’d like to add before we finish up, Jamie?

Jamie Beaton:
The last thing I’d add, I often say this to students, but I think it’s really relevant to kind of entrepreneurs, business people. Listening is that often you’re really only limited by your ambition in terms of what you want to achieve. So I guess we started this when we were naive, still naive, but we foolishly think we could take on the world and so just not having limitations like thinking, oh, Russia’s a funny market or China is a totally different world and just going for it can often get a really quite exciting result. So I would really encourage people to be really ambitious with their companies, think about what they can do offshore and how big they can make them. The second thing I would say is capital access has never been better, particularly as a young person today, the idea that my team of 25 year olds could raise all this capital, et cetera, it sounds a bit ridiculous a couple of years ago, but these days there are many venture capital funds that want to bet on good ideas with ambitious people that can create something meaningful. And that means that for young people and people in general, there’s a lot more capital available to fuel ideas than ever before. Also, it means the competitive environment has accelerated. So if you’re just sitting there with the business growing at a certain pace and your competitors are raising venture capital and going very quickly, that’s going to put pressure on you too.

Jamie Beaton:
So these dynamics basically speed up the life cycle of creating a company. And that’s quite a powerful tool for entrepreneurs to use. So a couple of final remarks I’ll leave the listener with.

Paul Spain:
Excellent. Well, thanks very much for coming on the show.

Jamie Beaton:
Thanks, Paul. Really enjoyed it. Great.

Paul Spain:
Yeah, I mean, and we’ll look forward to following where things head to from here and wish you every success.

Jamie Beaton:
Thank you. Appreciate it. You too.

Paul Spain:
All right, thanks, Jamie. Well, hope you enjoyed hearing from Jamie Beaton and learning about Crimson Education. Keep an eye out for a continuation of Crimson’s incredible journey here on New Zealand Business Podcast. And be sure to listen in to our other episodes featuring many of New Zealand’s most successful leaders, including founders such as Rod Drury of Xero Cecilia and James Robinson of My Food Bag, Sir Peter Beck of Rocket Lab, Brooke Roberts of Sharesies, Sir Michael Hill and many more. The New Zealand Business Podcast is brought to you by One New Zealand and my firm, Gorilla Technology. If your mid size or smaller organization is struggling with any aspect of it me, feel free to get in touch. I’d love to have a coffee with you.

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Simon Huesser – Co-Founder and Director at Huski

Posted on 3 Oct 2025 in Featured, Podcast

Simon Huesser – Co-Founder and Director at Huski

Host Paul Spain sits down with Simon Huesser, co-founder and director of Huski & soon to be launched Smoco. Hear how Simon and his wife Meika transformed a simple idea—keeping beer cold for longer—into an internationally recognised brand now sold in over 50 countries. Leveraging their backgrounds in marketing, design, and business to build Huski from scratch, into a business that delivers award-winning products. Full of practical business lessons, anecdotes from Simon’s early career, and the realities of innovating and growing a global business from New Zealand, this conversation is sure to inspiring budding entrepreneurs and business leaders alike.

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)

Paul Spain:
Greetings and welcome to the show. I’m your host, Paul Spain, futurist and chief executive at Gorilla Technology. I love to see individuals and their organisations thriving. The New Zealand Business Podcast is all about this through sharing the business and career learnings from others to help you and New Zealand as a whole to do better at home and on the global stage. In this episode I’m talking with Simon Huesser, co founder and director of Huski, a Kiwi company creating performance drinkware that keeps drinks at their perfect temperature. From your favourite beer to your favourite wine. Simon and his wife Meika transformed a simple idea keeping beer cold for longer into an internationally recognised brand. Huski’s innovative coolers, including their award winning wine and champagne models, are now sold in over 50 countries and and stocked in more than 500 retail stores across Australasia and Japan.

Paul Spain:
Their recent shipment of 76,000 units to the United Kingdom marks the company’s largest single export order to date, driven by soaring demand during record heat waves. In total, they’ve sold over 1.5 million products. Simon’s journey provides an insightful lesson into Kiwi ingenuity, combining sleek design, smart marketing and a deep understanding of consumer needs. With a background in marketing and product and a passion for creating products that enhance everyday life, Simon has helped position Huski as a top selling brand on Amazon and a recipient of the globally prestigious Red Dot award, previously won by brands associated with New Zealand such as McLaren, Fisher and Paykel and All Birds. The New Zealand Business Podcast is brought to you by Gorilla Technology, the information technology services firm supporting astute mid size and smaller New Zealand businesses, helping them leverage information technology and AI effectively whilst driving down cybersecurity and data risks. All right, let’s jump in. Simon Huesser, great to have you on the New Zealand Business Podcast.

Simon Huesser:
How are you today? I’m good, thanks, mate. Paul, how are you doing?

Paul Spain:
Very good. Great to have you here in the studio. I’ve been looking forward to delving in and hearing the story of Huski, so I like to always start at the beginning. So tell us a little bit about where you were born and where you grew up.

Simon Huesser:
Sure. Born in Taranaki, went to primary school, high school in Taranaki, went to university in Waikato, not too far from home. Loved it. Studied marketing and pr. Didn’t really know what I was keen to get into and they had kind of a broad commercial degree which delved a little bit into media and design and business. So I thought, okay, that covers a few areas so we can kind of go in a few different directions. From there and then after that was looking for a job. Didn’t have anything lined up immediately.

Simon Huesser:
Ended up coming back to Taranaki and then working as a security guard for a. For a couple of months. That was a. It taught me that I didn’t want to be a security guard.

Paul Spain:
How did that come about? You just needed to.

Simon Huesser:
Just needed some. Needed some money. I’m a dad, all right. You know, so looking for a job and kind of like, okay, I need to fill, you know, fill my time and. Yeah, yeah, man, that was. It was a few hours spent looking at fences and not doing a hell of a lot night shifts at hospitals. I was like walking through morgues at 3am in the morning. I was like, okay.

Paul Spain:
Didn’t engage you in the way you needed to.

Simon Huesser:
No. Security probably wasn’t my main direction, but it did let me. Over those nights, I’d work 7pm to like 7am So I kind of always had been interested in design and learned a bit more at uni and then sort of building basic websites and doing logos and stuff while, you know, in the breaks and sometimes not in the breaks. And then after that got a job with. I was constantly kind of looking for, you know, the right opportunity, the. Any opportunity that wasn’t a security guard and got a job with Villa Maria as a sales cadet. The wine company.

Paul Spain:
How did that come about? How do you. How did you get, you know, was that something you’d seen advertised?

Simon Huesser:
It was just whatever it was at the time, seek or whatever it was pre seek. And I was like, sort of sales sounded like a bit of marketing. I wanted to get into the marketing side of things. And went up. That was in Auckland. Went up to interviews, like a standard job. Stuff known. Didn’t really have networks or connections or whatever.

Simon Huesser:
So I was just like, look, I just need to get something. And then went into that. And that was a really cool experience. That was like, you know, day one, you’re in the cellar door. And they had set up a relatively new wine operation and mangery was. Looked fantastic. I think it’s sort of gone sideways a bit now. But the, you know, I didn’t know much about wine other than red and white was, I was pretty sure were different things.

Simon Huesser:
And the. But day one, they’re like, okay, you’re in the cellar door. You’re gonna be doing tastings and, you know, tours, and there’s about 40 wines on the shelf. Let’s start at the bottom left and then work our way up. And then we’ll teach you the Difference between all of them. I was like, all right, here we go. And then so day one, you’re like tasting each one. This is a Sauvignon Blanc and it tastes like, you know, cut grass and cat piss and a bunch of other sort of literally, that is, you know, the things that they’re talking about and, you know, the smells and the aromatics.

Simon Huesser:
And about halfway up the second shelf, it all started to blend together. But I was there for a year and it was a great experience of learning about the wine industry, learning about marketing and sales. And George Fischenich was a, you know, founded it. He’s been on a, you know, on a journey himself and being exposed to him and the world that he had built. And like a few sort of interesting business takes on, you know, when people come in to buy wine that they come with a price point in mind generally, rather than a, you know, a high degree of understanding or knowledge about wine. So somebody would come in, I’m looking for a $15 bottle or $100 bottle. And Villa Maria did a great job of going, we’ve got the right bottle for you.

Paul Spain:
You know, like, cover every point.

Simon Huesser:
Yeah. So they’d have their private bin selection at sort of 10 to 20, and then they’d have their seller selection at 20 to 30, and then they’ve got their reserve at $30 to $50, and then their single vineyard. So you can find whatever you are looking for rather than if you just had one price point, you missing out on that hundred dollar spender who now has to spend $20 who might walk away and not buy it. So it was just like, man, there’s a whole. There’s a whole world here of, like, intelligent marketing. And so it was an education on the, you know, that’s.

Paul Spain:
That sounds fantastic. And how inspiring was it to work in a, you know, brand that had done so, so well and to be right in there and able to learn all sorts of lessons?

Simon Huesser:
Yeah, it was great. I mean, I guess what it showed me was you can just do it. Do you know what I mean? Like, I think he was a. I’ll get the nationality wrong, potentially Croatian, and come over and, you know, set up this business and grown it and grown it. Been relatively aggressive with the growth strategy to be able to achieve what he did. But I was like, okay, this doesn’t seem impossible. You know, being exposed to the idea that somebody can just do it, I think was pretty cool. And without me knowing, it was just kind of like, oh, okay, you can just do it.

Simon Huesser:
So it wasn’t like, oh, you can’t do something that you want to do. And it was his passion. So that was great. Yeah.

Paul Spain:
So that recognition that a founder can come in without all the knowledge and all the experience, but with passion and a mindset and all the other elements. Right.

Simon Huesser:
And I’m sure he knew more than just red and white. Right. But, yeah, he could just get into it and build it up. So that was great. And I wanted to sort of grow and learn there, but I reached a certain point where, you know, I was ready to kind of go and explore other stuff. I think I pitched him a few ideas to try to. Pitched him trying to do the Apprentice because I wanted them to kind of do like a. Okay, how can I go up within this business and do, like, an internship that didn’t hit the mark?

Paul Spain:
So what did you learn about yourself at that time in terms of, you know, what you were good at, what you liked, what, what you didn’t, what was sort of, you know, pushing your buttons?

Simon Huesser:
I. That job had a bit of everything, like. Like you were doing tours and tastings, and I, you know, the repetition of doing tours twice a day, one was quite interesting because you got to talk to a bunch of people, but two, saying the same thing all the time got a bit repetitive. So I was always looking for kind of, okay, how can. I had a wine list. I was like, how can we digitize this, you know, wine list? And sending plain text emails. Maybe we can send the email with the pictures of the bottles. And I was like, I’ll grab that and see if I can, you know, make that better.

Simon Huesser:
And they were like, oh, we’re not getting many people to these events or whatever. And I was like, well, there’s local businesses around. Maybe we can, you know, I’ll design a leaflet and we’ll go and I’ll drop the leaflets around. Half of that might have been just to get out of the building to kind of go for a walk. But, you know, and that meant that they sign up and we said, oh, you can have a free tour and tasting. And so it kind of. I don’t know, I was just kind of like, got amongst whatever I got amongst. And if.

Simon Huesser:
Even if it wasn’t on the job description, I was kind of like, I’ll give it a go if it gives me a chance to learn something. And I got to a point where it was kind of like, oh, maybe you just need to do more tours and tastings, you know, And I was like, maybe I need to head off, you Know, and I’d try to help and give back all along the way, but I was like, oh, maybe I can learn something from. From somewhere else. So it was a really cool start.

Paul Spain:
Now, just jumping back a little bit to your education, school years or university years. Was there any particular work that you did there? You talked about at university doing sort of websites and bits and pieces.

Simon Huesser:
Yeah, I mean, at high school and stuff. I liked a bit of graphic design. Always liked ads, watching ads. I think there used to be a TV show where they. Was it fair go or something? Did like, you know, the best ads in New Zealand or the best and worst ads or something. And Mum and Dad, we would always like watch that and, you know, and always enjoyed that kind of visual media stuff. Technology and computers were always interesting. Mum really helped with that.

Simon Huesser:
Like we had a. Going back to primary school. There was. There was a game, man, it must have been like six or seven, but there was a game that you played that was like. It’s called like Lemonade Stand or something. I think it was made in like the 80s or 90s and it was like on a. You know, it was pretty much DOS and it was. You type you.

Simon Huesser:
I think how it worked was you. You basically had to sell as much lemonade as you could and you had. You could buy like sugar and you could buy signs and you would just type in I want to buy six kilos of sugar. Or. I’m not sure of how accurate this is, but you bought these things and then the weather would come and it would, you know, tell you what, whether you. How many glasses of lemonade you’d sold, had you bought too much sugar because the weather was not great and therefore you hadn’t sold. Was it sunny and you. Whatever the situation was.

Simon Huesser:
And then at the end of it you would go eight and you would be profit how profitable your little business was. And I was just like, oh, this. That’s pretty cool. And so that was super young. That was, you know, primary school, early primary school. And then that started off a whole gaming thing which was quite interesting. You know, Sim Farm and Sim City and Sim these kind of like. That’s really cool because those sort of.

Paul Spain:
Games are, you know, both. They’re really fun, but actually in behind the Scenes, you’re building up some knowledge and probably even a level of resiliency, sort of, you know, understanding that things, you know, things happen in business that you don’t necessarily want or have control over.

Simon Huesser:
Right? Yeah, probably right. There’s a whole bunch of sort of stuff. So that Kind of real time strategy was always kind of fun. And then mum fostered that, you know, at home she bought a Amiga 500 computer and would play computer games and copy computer games and trade computer games and sell computer games. And there was. That kind of stuff probably really helped. And there’s a lot of. I guess as I progressed and I used to play a reasonable amount of computer stuff and then that probably transitioned into business as I had a.

Simon Huesser:
When I had a normal job of which we only started Huski, I was like, Meika and I were like 35 or something up until then. It was normal day to day business. I was playing kind of computer games a little bit when time would permit. But then kind of all of that effort of that kind of just turned into the. It’s like, man, what you put this time and effort into these virtual games, you can put it into like real life, not just credits, but dollars and you get the same kind of buzz and same kind of entertainment. So I think there’s a correlation, there’s a, there’s a relationship there between that kind of early starting point and. As well as Mum sort of fostering it along the way. I remember she took me to computer club and this was early 90s ish, mid-90s maybe.

Simon Huesser:
And the. It was like an Amiga club or something. They showed the Internet for the first time. Yeah. And I remember I was there for the games and mum was like, look at this Internet thing that they’re talking. Computers can talk to each other. I was like, oh, this isn’t going to take off. I don’t know, don’t know about this though.

Simon Huesser:
See the value in this. If you could have sold me shares in the Internet, I would have said, no thanks, I’ll take double drag in the computer game or whatever. So it’s interesting to see. I look, I think about that and I go, man, you can be really wrong sometimes.

Paul Spain:
And at university you mentioned something around web websites.

Simon Huesser:
Building websites was just probably an evolution of graphics and technology. And you pull those together and you can start building websites by domain names and connect them up and then anybody in the world can see them. I was like, oh, this is pretty cool. Had a dabble with some like selling T-shirts online kind of thing, but never really, you know, never really pushed it super hard. Because at university there was the uni work and then there was the social component which was. Took a reasonable amount of my attention. So it was just kind of dabbling. And then after that then there was a few kind of designing of logos and stuff for Friends and family and other work, but they would, you know, could earn a little bit of money on the side doing that kind of stuff.

Simon Huesser:
So it didn’t, there was an interest and it was low key, kind of just, you know, dabbling in it at that point.

Paul Spain:
But it probably gave you some, some good hands on experience and expertise, even if it was.

Simon Huesser:
Yeah. I mean, you’re strengthening that muscle, right? Like getting exposure and understanding and learning what CSS is and you know, learning Photoshop and Dreamweaver at the time and that kind of, you know, stuff and realizing how difficult it is to build a good website and. Yeah, so that’s kind of early 2000s ish. Yeah.

Paul Spain:
Do you feel that some of that expertise, which is, I’m presuming you’re not sort of sitting there and, you know, needing to muck around with Photoshop and these sorts of tools these days.

Simon Huesser:
Definitely. But there’s definitely, definitely lead still. Hands on the tools. Photoshop. It’ll be a bit of canva, a bit of Photoshop. So still pretty in at the bottom level and pretty in at the top level. So yeah.

Paul Spain:
Does it help you understand what your team need to do that you’ve got, you’re able to do some of these things yourself?

Simon Huesser:
I think so. They might be happier if I was less involved at all the different levels, but I now have an understanding of how long some things can take because I’ve been through that and have had 25 years or whatever of experience of doing it and learning and building understanding of what good design might look like and that kind of thing. So yeah, I think it helps a lot. And we as a business have like a propensity to kind of practical, pragmatic doing things versus theoretical strategic thinking and that kind of thing. So I put it, you have to have the right kind of long term plan. But then pretty quickly we come down to kind of, okay, how are we gonna put this into action? Let’s test it. Let’s, you know, how can we spin up a website to test that theory of if that thing is good? And that probably came from other jobs that I had afterwards where became aware that people think they know what the right answer is a lot of the time. And a lot of experts will have strong opinions, whether they’re designers or web developers or managers, but they don’t.

Simon Huesser:
Like, sometimes they do, but also sometimes they don’t. And in later jobs there was, you saw that firsthand where you think, hey, I’m doing this right thing. This is going to be great. But you realize that actually it’s having the opposite effect. Whether it’s an incentive for a salesperson or a changing the color of a button or some words and some text on a website that you think is going to enhance conversion is actually doing the exact opposite for some particular reason. So if you can default to kind of, let’s just put it in practice and test it and see what happens. Because there’s a bunch of stuff that you don’t even think about that will happen. Do that if you can afford it.

Simon Huesser:
Yeah, yeah.

Paul Spain:
So after Villa Maria, you went across to. Was it Briscoes?

Simon Huesser:
Went to Briscoes. Yep. So again, that was, you know, just another, you know, found a job. I was like, Briscoe Group? Oh yeah, that. Well, I didn’t know it was a group at that stage, but the Briscoe’s lady selling toasters every couple of weeks for 50% off was awesome. Like in terms of seeing another part of another company who marketed really well and had a really good like experience and it was continued to grow and.

Paul Spain:
Thrive because this was going back nearly 20 years. Right. So it was in their earlier days.

Simon Huesser:
So I mean that’s been gone, that also been around for, I don’t know, 20 years before that or whatever. But yeah, it was earlier to where they are and I was kind of like, how long is this? You know, at that time they were like, how long is this? How long can we keep doing the Briscoes lady and you know, 50% off toasts? And it turns out quite a while. But seeing and being on the conveyor belt of, I mean these guys are a machine of, you know, retail promotion and merchandising and, you know, okay, what are we doing last year? And a slick machine of just churning through. They had a really good partnership with Ogilvy, possibly still do. I don’t, I don’t know where you know, there’s hundreds of products going into a mailer every, every week, plus layer in radio, plus layer in tv. You have to have really slick process. And every one of those hundred plus products that’s in that mailer, you know, there’s a dinner set worth 110 pieces. And at that stage, I’m the marketing assistant.

Simon Huesser:
I’m like, somebody’s like, we need to count all of these 110 pieces because if there’s an extra piece in there, Doris is going to look at her mailer and people love their mailers and she’s going to point out that if there’s an extra spoon in that Photo. She’s going to turn up to that store and be like, actually, here’s my set. It’s missing a spoon. And then we’re going to create problems. So there was. Half of my job was like, coordinating kind of the production and checking the mailers. And any one time you’ve got all these going on, but you’re counting, like, all these, you know, different products. There’s a cat sitting on a duvet.

Simon Huesser:
Is somebody gonna think that that cat comes with the duvet? You know, and. And people love those mailers. That was the other interesting thing. You would get phone calls from people and because I was kind of the front line of, you know, it was like, oh, my, I’m not getting my Briscoes mailer. Like, people love them. And then we would have to launch an investigation through the agency with like, New Zealand Post, and then find out that little Johnny has not been, you know, delivering all of his Briscoe’s mailers to his street. And because he’s been dumping them, you know, like, didn’t want to do his little paper run anyway. It was.

Simon Huesser:
It was cool and it was good. You saw the Rebel Sport thing again. Another kind of founder lead operation. Rod built the business up and built a really strong team and got exposed to the buyers and how they kind of work and pricing and all that kind of stuff. So it was. Yeah, it was great. It was just a really good learning opportunity. Yeah.

Paul Spain:
And so who were you interacting with? Were you interacting with. With Rod Duke? Were you into you? I guess it was mostly with the head of marketing.

Simon Huesser:
Yeah, not much with him, but I think I told him he had a flat tire once. That’s. Yeah. Probably won’t recognize me, but you saw how the business had been built and how they operated, and the buyers had been there. Even when I was there for 10, 15 years, a lot of that core group. So I was interacting with the agency who was in charge of kind of the content and production side of things. TV, radio, print, @ the ground level of marketing. And then my manager.

Simon Huesser:
But I also was in the sales meetings. Cause I was the guy who would go through the newspapers and then pull out, okay, here’s what farmers doing, you know, this week. And here’s what’s this? And you would show them all. And then, you know, the. I think it was the MD of each of the, you know, Briscoes who was in charge of that would kind of look at them and then look at the sales numbers and be like, oh, is that maybe the reason why we’re not pumping this week because farmers is also doing some kind of summer sale. Do we need to extend our sale? So I was exposed to a bit of that, but didn’t have any, you know, meaningful input other than showing that there was a red dot sale on that week.

Paul Spain:
So any any sort of other sort of lessons that you, you took away from that, that time?

Simon Huesser:
I think process was probably the big one there. Like the having that efficient process to be able to keep those mailers moving and the, the in retail, you know, you have to. And you’ve got to print all these leaflets that go to all these stores. So efficiency of. To scale has to be pretty slick. You can’t, you know, you can’t be tweaking and changing on the flight sort of too much. You’ve kind of got to stick to these things. So there was a lot of like, okay, what did we run last year? Run the same again or something similar this year, but tweak it and enhance it if we think we need to do it.

Simon Huesser:
So it was that kind of like, okay, actually you can build these, you know, promotional plans that layer on top of last year and learn and grow bigger rather than kind of reinventing the wheel all the time.

Paul Spain:
And I guess you were relying on key external parties in terms of, you know, you mentioned, you know, Ogilvy in terms of looking after your retail, you know, flyers, brochures and so on. I guess, you know, TV commercials, you know, you’ve been relying on external printing and distribution firms and so on. Did you get involved in having to sort of look after those relationships and in different ways?

Simon Huesser:
Yeah, yeah, like the basics of, you know, making sure stocks going backwards and forwards and checking photos and tweaking stuff. So probably without me knowing it, you become aware that you can plug in, you know, other organisations to help you grow. And then like, so they had a reason. You know, the marketing team on Briscoe Group in house at that time was like maybe four or five people and responsible for. And that’s the like, top person in marketing and then two marketing managers and then two marketing assistants. And that’s then, you know, there’s buyers and other elements of the business. But this is producing TV ads and mailers and all this stuff. So the.

Simon Huesser:
Yeah, I mean, the agency was doing a lot of the heavy lifting. So it’s interesting how you could just plug that piece in and it’s actually, you know, now you’ve got, you know, four people here within the business and you can have however many, call it 30, you know, outside the business and it still works really well. So yeah, there’s probably some learnings in there that I didn’t even, you know, know, I learned.

Paul Spain:
Yeah, there’s. There’s a lot that you kind of learn through osmosis, being it. Being in these environments, isn’t there?

Simon Huesser:
Yeah, I think so. I think now what.

Paul Spain:
What drew you to leave Briscoe Group? And, And I think. Did you head overseas after that?

Simon Huesser:
Yeah, the classic. I mean, my story is not particularly revolutionary, I don’t think, you know, and then you’re like, okay, we’ll go on oe. That seems to be what you do. So got a couple of years experience, got a, you know, a few mates were kind of ready to go. I met my girlfriend at university. We were, you know, together. She, who was the co m. The co founder of Huski, also had some interesting learnings.

Simon Huesser:
Like she worked for a company called Vista Solutions or Group or whatever they are. They do cinema software. So there was a lot of, kind of. She was learning stuff as well.

Paul Spain:
We’ve had the founder on the. On the New Zealand business podcast so people can look that up. It was pretty, pretty amazing Kiwi success story.

Simon Huesser:
Yeah, they. They kind of power the back end of cinema software from ticket buying to websites to all sorts of stuff. So she was like the first marketing person that they had. So there was a lot of. She was also exposed to a world of kind of, you know, startup slash founder, people who were doing cool stuff. Anyway, so we both quit our jobs and you know, Briscoe for me was I’d learned a bunch of stuff there, was ready to kind of go. It was just more important to go overseas. Would have I.

Simon Huesser:
If we didn’t go overseas, might have stuck around for a bit longer. Yeah, who knows? And then went overseas and went to, you know, did the classic OE thing, went to London, traveled along the way and then when we were in London, ended up settling down, getting jobs. The plan was to stick around for a year or two and see what we think of it. I guess I had the benefit of dad as Swiss, so I had a Swiss passport. And at the time it was all kind of. It worked out all right. You could stick around for a bit longer. Meika was on a New Zealand passport, so it was kind of, oh, in two years we’ll be back kind of thing.

Simon Huesser:
I was like, ah, we’ll see. See what happens. And so then we were traveling. I got a job for a company called Think London who was a foreign direct investment agency in their sort of marketing Team and they were. They’re responsible for encouraging businesses to set up their head offices in London so. To improve the economic prospects of London. So they’re trying to get knockier in. At the time, it was big China Mobile and Bank of China or whatever to kind of be like, hey, you should choose London versus Paris.

Simon Huesser:
Because xyz, the Beijing Olympics was kind of building up at that point. So they were doing these big kind of marketing pushes to go to those events. And they would talk to these business people and be like, hey, if you’re thinking about it. And that was great. There was a guy from Brendan Dineen who was from. He’d been seconded to them because they’re kind of like a public private partnership. Yes. To them from IBM, it was like pretty high up in IBM and super smart guy and the worked in his team and that was just.

Simon Huesser:
He was like a numbers guy. He was like, metrics and growth and okay, how are we going to do this? How are we going to see if whatever we’re doing is working? Kind of these agencies were kind of a bit more fluffy. They were kind of like, you know, oh, yeah, we’ll generally do this and we won’t understand if it’s really working, but we’ll kind of. If we influence. Help influence Nokia, then maybe. And we can, then we can say that Nokia is worth, you know, so many hundreds of millions or billions of dollars. This is so many to the. So much money to the new.

Simon Huesser:
To the, you know, London and UK economy and whether or not they contributed meaningfully, I don’t know. Sometimes probably, yes. A lot of the times did they. I don’t know. But Brendan was all about like, okay, I’m going to try to track this as much as possible in account. So he would have these sessions like Monday Metrics and you would sit down and we kind of. How many people have we spoken to? What are the contacts? You know, what are that thing? So there would be numbers on everything. When they did the.

Simon Huesser:
The Beijing Olympics, they got a London taxi and they drove it around China and they would collect contacts. And then. So part of my job was like, how we can. He was like, we can make these contact collections kind of better. How can we do this? And it was like, okay, your job, Simon. Part of it is the guys who are the sales guys on the ground collect these contacts. What they would typically do is they would get business cards and then they would not do anything with them for a while. And then they would come back and they would email them however long afterwards.

Simon Huesser:
It’s like, I want the best experience we can kind of get possible. And so I was like, well, there’s. How can we do it? And we ended up coming up with, like, these. Or even they were local events. How can we improve it? So they were started to do these, like, scanning of cards. I found this, like, business scanning thing where you could, like, scan the cards. I found it, or someone found it. I can’t remember.

Simon Huesser:
Don’t wanna take credit if it wasn’t me. But you could, like, get the cards, scan them, email, they could give them back, and they could, like, contact them straight away. So you could give the person this, like, really incredible experience where typically you grab a business card of someone, you may never hear from them. Or maybe weeks later, you’d be like, straight up, like, that night, they could have something back like, hey, great to see you, Mr. Whoever, and then do it. And then you. Then Brendan would be counting how many did we do? And how quickly was it? And various other things. So he was awesome and learned a lot from him and the team that he set up around doing that.

Simon Huesser:
So it was constantly kind of like just being exposed to people who. Really smart people who were doing cool stuff. And it was just kind of a fortuitous situation. Do you know what I mean? How much of that was me being in the right place at the right time? There’s quite a bit of luck, like just being exposed to these. These guys. Yeah. And girls. Yeah.

Paul Spain:
Oh, well, that’s the. That’s, I guess, the reality that happens. You put yourself in different places, you.

Simon Huesser:
Get new opportunities to learn. Yeah.

Paul Spain:
And. And then what. What happened from there? What did you move on to?

Simon Huesser:
And then. So that was quite. It was very offline sort of role. Physical events, you know, meetings and coordinating in the background. Yeah. Then I was like, I wanted to. Maybe we’re going traveling for a bit and then we’re like, come back. So quit that.

Simon Huesser:
Oh, we come back to New Zealand for a little stay. So I was there for about a year, came back to New Zealand. Amica had to renew her visa, I think, to get a highly skilled visa to go back. So when we came back to New Zealand, quit the job, came back, I was like, we’ll find a new job. This is now sort of 2007 initial, you know, just after. So there’s the kind of global credit crunch, which I think I didn’t know anything about at the time and didn’t know that it would go back to this, like, hard to find a job environment. But we were Kind of oblivious to it and we’re willing to take whatever. But I was, I was like, I want to get back into the technology side of things.

Simon Huesser:
I reckon this Internet thing that I thought might not take off seems to be going all right. So I reckon there was something. I reckon I need to get back on this like bandwagon. And so I was like, I want, I don’t know what job, but I want a job in a company who is doing stuff online so I can learn from how they operate and what they do. There was a job popped up with a company called Top Table. I hadn’t really heard of them and when I met them and they did restaurant booking software, basically online booking. So booking.com is to hotels. Top table was two restaurants.

Simon Huesser:
So if you’re looking for a, you know, pool, I’m looking for a table for two, you know, in Soho that’s great for business at 7 o’ clock tonight. And I would prefer Thai then you pump that in and it goes, actually here’s the restaurants that meet your criteria and they sort of, they knew what the availability was within those restaurants because they were connected online to them. So I was like, this seems cool. It was a, like a CRM marketing emails guy job.

Paul Spain:
And so your role was what, to find more restaurants?

Simon Huesser:
No, my job was to send. It was very consumer focused company. Okay. The technology was pretty light on the, on the restaurant integration side of things. A little bit like a, like a duck swimming on, you know, a pond where it looks all smooth and like it all works on the surface, but underneath the feet are paddling pretty hard. Like, like there would, it was as kind of rudiment, some of them. There would be an online allocation system that with the restaurant sometimes you would, they would, somebody would book online and it would come through to Top Table and then somebody would pick up the phone and call, call it through. So you know, it was.

Simon Huesser:
Looked kind of slick sometimes, but on the back end was less slick sometimes. Anyway, so my job there was sending the emails to customers. They’d built this really good consumer brand where Top Table was kind of cool and you know, you could get, you could get deals and stuff. But that wasn’t everything about it. It was before the kind of Groupon stuff. It was just a good way to book restaurants. And maybe you would get, you know, 10, 20, 50% off your meal. And my job was to send the emails to people who signed up.

Simon Huesser:
So, you know, they had a list of however many hundred thousand people and you’d be like, oh, the hot restaurant this week is this, that and the other thing. And they sold ads in those emails and you know, placements for restaurants to be, you know, higher up, et cetera, et cetera. So that was my job, sending a whole bunch of emails every week with a lot of restaurants in them. But I got to see how this whole system worked of the online, like transactional booking. Plus there was this kind of consumer facing side. Then who were one set of customers, then there was the other set of customers who were restaurants. And you had to have this kind of this network effect thing going on where you need a cluster of restaurants and then you need, you know, diners to book those restaurants. And then when they go into new cities, going into Manchester, do they have enough restaurants to make it interesting for diners? So there was a whole world there.

Simon Huesser:
And when I started, hopefully not as a result of me, but the entire marketing team sort of turned over who’d been there for a few years and then there was a few of them and then they left and then I was the only guy there who was marketing. So, okay, I’m now the marketing guy. So got to be involved with a whole bunch of different stuff than when I first might have arrived.

Paul Spain:
So there’s a lot more on your.

Simon Huesser:
Shoulders, a lot more to get involved with from dealing with partnerships and affiliate programs and other brand association. But like Michelin dining guides and all this kind of stuff we like, okay, just throw in and go, okay, this is cool. Like. And that was another company where the person who had started it, a lady called Karen Hanton, was not particularly technical. Not particularly, but she, she’d started this online restaurant booking service and I think worked really well for her because, you know, she’d got a technical people around her to help build this thing. But she was kind of more like, here’s how I want it to work. Like just, you know, this should go to that. And wasn’t kind of blocked by these restaurants don’t have WI fi or technology in them and they’re using a paper book.

Simon Huesser:
Like we’ll just call up, like just take the booking and then make the thing. She kind of just pushed through and got it to work. So that was interesting to see how you didn’t necessarily need to be an expert in all things to build the, build the thing that she wanted to, you know, create and had created the UK’s largest dining destination, you know, website.

Paul Spain:
Amazing. Yeah. When you, when you think about it and you mentioned those, those things. Yeah, yeah.

Simon Huesser:
And that’s probably played a role in Huski you know, when we’re looking at. And kind of like, okay, when we got to that stage when we wanted to design products, I’m not a product designer, Karen wasn’t a engineer or developer. But I know what a good vehicle should do, you know, and I’m pretty pedantic about stuff. So we’ll just, we’ll just try. We’ll just have to try a bit harder than everybody else to, you know, make it as good and listen a bit harder and pull the right people in. And so she did a really good job of that. And then so I’d kind of done like a year in all of these jobs at this point and then. But this job was a bit different.

Simon Huesser:
It was technology, it was online, it was developing. A few years in, a couple years in, they got acquired by a company called OpenTable. And OpenTable was like the US version of them, but a lot bigger. I didn’t have any skin in the game or anything. I’m still just marketing guy. But that was like, I don’t know what it was, $50 million or something. They were acquired £50 million or whatever. It was the.

Simon Huesser:
And then you got to see what. Working with like OpenTable is like a San Francisco kind of bit of a startup darling, early days kind of thing. They had a bit more on the technology side. So you know where the duck had its legs kind of going pretty, pretty quickly underwater. On the top table side of things, they were a bit more had it worked out because they had started with the technology at the restaurant side of things. So they basically digitized the reservation book so they had true insight into when somebody, when a restaurant used that system, they would use, they would know what tables were in what positions and how many people were sitting there. Because when you call up to book, they were plugging that into the open table system, whereas Top table was less of that. So the, and then what OpenTable did secondarily was like open up that availability in real time to consumers.

Simon Huesser:
So this is now when you choose to book a Thai restaurant at seven o’ clock in soho, you know exactly what seat because you’re going straight into that seat and you know the availability is there. We don’t have to have this like phone call in the middle of it, which didn’t always happen with top table. Sometimes it was allocations, but so they were more technologically savvy. This is a pre cloud, so they had electronic reservation erbs in restaurants and they were installing like Internet into some of these restaurants. So they had kind of, they’d been around for a reasonable amount of years. So they were, they were trying to get all these restaurants kind of set up. But once you’re in with a restaurant, because that’s the system they’re kind of locked in. So they got revenue from subscription models where they went, okay, you’re using the open table system to manage the bookings.

Simon Huesser:
That’s just got value in of itself because now I’ve got all of my people and when Paul walks in, I can see Paul and pull up his name and I know that he loves a glass of red wine and whatever he loves or he’s a bit of trouble as a customer. So let’s put him in the corner, you know, so hopefully my name’s not on any database. Maybe, maybe. I don’t know. There’s a few stories about restaurants when they get it wrong and expose the internal stuff. Yes, codes, codes was the key, I think where you would pull the number 66 or whatever it means, you know what I mean? So they would lease out that, you know, that B2B software solution stuff and then they would go, okay, now consumers can book. So OpenTable was a dining destination to find and book the right tables around the place. And then they would charge the restaurant like in the US a dollar or whatever it was to, you know, put a bum on a seat, which a restaurant was typically happy to pay because they’d come from the OpenTable website.

Simon Huesser:
So that was interesting to see how OpenTable worked and get exposed to that kind of technology side of things. And then they started to kind of. We started to build up the marketing team actually before and when it was top table, it started to build up and I was there. So I kind of got built up with it. There was a couple of, you know, they got a marketing director and above me to help with the transition and then some people below and just kind of got to grow with the company. And that was good for a few years as well. Like we were doing, you know, started doing TV ads with mobile, you know, download the app and the apps, started to launch the technology in restaurants, started to move to cloud based stuff. So there’s a whole interesting world going on.

Simon Huesser:
Mobile is really starting to take off, you know, the iPhone and then conversations of should these be web based? You know, do we need a M dot top table site or should we build an app? And it’s kind of like just around all of these conversations and it was a pretty flat structure. So, you know, you’re in the meetings and hearing what’s going on. So then Open Table has acquired. Top Table is kind of growing. There’s a brand switch from Open Table from top table to OpenTable. So that was an interesting experience where you’re going, okay, what’s going to happen here? Are people going to care or not care? How does that go? And it’s interesting. It just seemed to work pretty seamlessly. There was a transition thing that kind of went on.

Simon Huesser:
You know, it was Open Table by Top Table for a little bit. But because they could control all the channels and all that, you know, everything when you type in Top Table just redirected to OpenTable. It’s kind of like you changing your name. I guess if Paul suddenly becomes Sam, but you’re still exactly the same guy, people are still probably gonna more or less treat you the same. Now if you change your name to Cindy, there might be, you know, you might have a bit more of a difficult experience with some people. But if you keep nearly everything the same, you don’t change your appearance or your functionality or whatever. Initially it was interesting to see how that works just from a brand, how brands work in people’s minds thing. And I think they did a good job where they transitioned initially the name and nothing else and then they transitioned the technology and the, the interface.

Paul Spain:
Yeah, that’s interesting, isn’t it? Because they could have gone the other way. Well, to some degree. But I. Yeah, I guess probably, yeah, naturally changing the brand first and then changing the technology underneath it was. What was it? Do you remember if there was a sort of particular rationale or that was just going to be the easiest.

Simon Huesser:
It could have been an easiest route and I can’t remember exactly how it worked but the. It could have just been, that’s when stuff was ready to happen. Or it could have been a smart decision of how to do it. But what was just interesting to see was how your consumer behavior around that and there was barely a blip like when you kind of change the, the brand name. So it was interesting to see the value of brand which to me taught me that brand is more than just like a name and a logo. It’s how things work and the way people interact and all this kind of stuff. So yeah, so there was an interesting things going on in that world. And then OpenTable got acquired by a company called Priceline.

Simon Huesser:
Priceline. And this is a jump. So then Priceline is now opentable was. So say Top Table was like when I started, maybe 30 people, maybe 15 of those are like customer service people who are doing the bookings. Then Opentable was a few hundred and then got up to many more hundred, maybe say 500. And that was traveling to San Francisco and seeing how the world of startups and kind of this kind of stuff, you know, worked, which was cool. Then Priceline acquires OpenTable. Priceline is they own like booking.com, rentalcars.com, agoda Kayak, I think, I think these ones anyways, they’re basically like a decent part of the travel industry.

Simon Huesser:
And they were like, well, what do people do when they travel? Well, they want to go to restaurants. So we don’t have a restaurant stream. OpenTable can be that one. So seeing how they approach things and they were just starting to get to a stage where they were starting to share learnings between the organisations that they had. I don’t think they did a huge amount beforehand. They kind of like let them operate in relative sort of silos, but they started to kind of probably because OpenTable was the one who was the least amount of revenue and the least performing. They were like, we need to bring these guys up to speed. Even though they were the biggest restaurant technology booking platform probably in the world, you know, did really well and.

Simon Huesser:
But dust on the scale of Priceline was not big enough at all and didn’t have the scale or the speed that people wanted because Top Table OpenTable might have been going restaurants on board at 50 a week or something. And Priceline’s like, we’ve got however many hundreds of thousands of, you know, maybe millions of hotels, you need to be thinking, how am I going to bring on hundreds if not thousands of restaurants online? And they’re like, we’re going to help.

Paul Spain:
You scale up on a weekly basis.

Simon Huesser:
On a whatever 50 to weekly monthly. But it was just a huge shift of like what you thought was big was just not big, you know, and speed was not speed. I heard the word scale more times in that company and I didn’t really appreciate. I needed to hear it like a hundred times to really let it sink in of like dollars spent on advertising. How many restaurants to sign up, how many? And now just kind of like we need to be whatever we build. Because they’re like, we want to take this around the world, right? And at this point I had got to a point where it’s kind of director of product marketing for International. So being exposed to how we’re going to launch OpenTable into different countries and they’re kind of like, well, if we’re going to do it, we need to like go quickly. So how are we Going to sign them up.

Simon Huesser:
Can’t just be Steve calling up, you know, do you want to join up? It needs to be online, it needs to be cloud based, it needs to be this, this and this. So there’s a lot of just going man, these guys are slick operators and getting to go to places like the booking.com headquarters in the Netherlands and they’re like, okay, we’re going to teach you how to do, you know, AdWords, Google search stuff and all the stuff that we’ve learned and we spend a lot of money like they’re significant on Google’s radar of how much money they spend because within the group, how many dollars they’re spending on. When you try to book the Marriott Wow. Hotel or I’m looking for a hotel in Fiji or whatever. Yeah, more often than not they want.

Paul Spain:
You to click on them. Not on the, on the, the entity, the hotel directly or through any other platform. They won, they wanted that business they.

Simon Huesser:
Want and they, so they, you know, when they speak, Google listens. I mean Google, they, they have a seat at the table because Google is thinking that they represent a significant proportion. So they were able to kind of even do things like go, here’s how the logic works on search when you pump in, you know, key terms and here’s buying strategies and his things to do with that kind of stuff. I was like, man, this is pretty valuable like information to be able to sitting at the table and hearing what these guys have known who are talking to the people who build the platform, which is you typically black, boxy kind of stuff. Right. You know, people are kind of second guessing about how does SEO work and how does this work and these guys have that. So it was like, man, this is, this is awesome. So I was there for like seven years and it was just like, man, this is, this is cool.

Simon Huesser:
Interesting learning. Don’t know if we’re ever going to turn this into something, but it was just like, interesting. It was just good to learn from and if the right opportunity ever came up, maybe we could apply it whether it’s another job or whatever. And I’m just a normal, just a normal guy working a normal job. Right. But it’s a cool job and it was interesting. But then eventually we were, we’re like, oh, we come back to New Zealand. Like it was either kind of go to San Francisco and be part of the open table underneath the Priceline kind of group or come back and we’re like, ah, it’s probably families getting older, we’re getting older, we should Think about, do we want to have a family? Where do we want to do it? And we were like, man, New Zealand’s.

Simon Huesser:
We love New Zealand. New Zealand’s the best place. So that’s where we’re going to do it. So financially, this is probably a terrible move, but there’s more important things in life than that. So, yeah, we’ll come back. And then we kind of thought, oh, it’d be cool to start something in New Zealand. But we didn’t know what it was and we weren’t particularly special in any way or had. It’s not like we loved mountain biking and were like, man, we’re going to open up.

Simon Huesser:
My dream is opening up a mountain biking store and, you know, doing that. So there was not like a clear thing that would be an obvious thing to do or product to sell or service to offer. So we’re kind of like, well, we’ll quit our jobs. And there’s not that often that you can kind of give up your jobs and both just have the sort of total freedom, a few dollars saved up from working that we hadn’t spent on traveling. And then we’re going to travel a bit more and then we’ll make this list of business ideas or product ideas. Hopefully we’ll see something along the way and we’ll be inspired. That was kind of it. And then went off, headed back to New Zealand and then traveled through, like, the US Grabbed a car in wherever it was somewhere in Florida, Orlando, and then drove.

Simon Huesser:
One of the bits was drove to like, San Francisco, like zigzagged and bounced around over the course of kind of six weeks or something. That’s quite, quite cool. Yeah. And we were just like, man, it’s not that often you get to quit your job and just go for it, so let’s just go for a hone. And that was when it was an interesting time because it was just before 2016 maybe, just before the, like, Trump was getting, you know, and Hillary thing. So we’re driving through the south of the US and you’re seeing like Trump flags and all this stuff, and you’re having chats in Walmarts about people’s opinions on all sorts of things. You know, politics and politics is certainly pretty interesting, pretty wild. It hasn’t calmed down, actually, has it? So.

Simon Huesser:
But that was cool. But while we were there, we saw some interesting kind of products and they kind of got put on the list and we were like, oh, yeah, weren’t thinking too hard about any of that stuff at that stage. We’ll get back to New Zealand and we’ll have a think. Yeah.

Paul Spain:
So, yeah, tell us about starting Huski back in New Zealand because there was a connection with some of the products you came across.

Simon Huesser:
Yeah. So we usually. I got back to New Zealand, it was just, must have been 2016. Just before Christmas we’re like, ah, it’s no use looking for a job and just before Christmas we’ll take the summer off. So we traveled a little bit around New Zealand, hung out with friends and stayed at, you know, our parents place. And that was an awesome summer. Then it got to the end of summer, you know, February or whatever. We’d kind of been half thinking, like, what are we going to do? We looked at, we had this list of like 50 ideas and we’re like, oh man, this list is terrible.

Simon Huesser:
Like there’s stuff on this list like ski boots that don’t hurt because your calves can, you know, they’re really painful. Like, surely we can make like a ski boot that’s like better. We knew nothing about skiing other than had been, you know, my parents skied a bit and I skied a couple of times and like duck. We had this duck food truck when we were in Asia and it was like, man, that’s cool. Like this. We could do like a duck food truck and we could have like quackling instead of crackling. And there was, they were interesting ideas, but not great in terms of the like, you know, the, the viability of long term thing. And so there was like 50 of these.

Simon Huesser:
They were all over the show, but one of the. Actually two of them. So one of the.

Paul Spain:
How long did it take you to collect this list?

Simon Huesser:
Just. Is this something we’re just writing? It was like an Evernote over a period of sort of six months once we left. Yeah. So I don’t know. Three to six months. Yeah. Okay. Everything.

Simon Huesser:
Every half baked was a one line on a trello board or an Evernote thing. It was like, that’ll go on the list. And okay. It was. That was it. And then you forget about it and then we’ll go back to New Zealand. Well, hopefully one thing on this list will be a killer idea. But we got back and we’re like, shit, none of these are killer ideas.

Simon Huesser:
And then we’re like, well, I guess we just have to get, you know, jobs. Like we’ll just. Well, we couldn’t think of a good idea, so that’s okay. And then started looking for jobs and applying for jobs and nobody really knew what, you know, OpenTable was or so. And didn’t really have any networks in New Zealand. It was like, went for a few progress but found it kind of really hard to get even foot in the door of stuff. And we were like, how bad was that list? Like, because this job hunting is pretty. Is it as bad as this job hunting thing? And we’re like, what if we.

Simon Huesser:
Because we didn’t have jobs, job hunting was the job. And then we had a reasonable amount of free time. But there’s only so many jobs coming up. Like, what if we approach starting a business like it was a job? So, well, we’ll start with this list. We’ll take a proper look at it and we’ll go, if it was our job to start a business, we’ve got this list. What have we learned? Well, we’ve learned about scale and all these other things in our previous jobs. And I was like, okay, well, let’s organize this list into buckets and let’s consider how easy they are to scale. Right.

Simon Huesser:
I’d heard scale about a thousand times in that job. So I was like, well, if we’re going to do it, we should do one that has the potential to be quite big. So we don’t have that much money. So it needs to be able to be tested on a small scale. And a few other criteria on knowledge of the industry was another one. And a few of them would kind of score them. And we went through score them, put them into buckets first, I think we scored them. And then when they scored a certain amount, they went into buckets, like the ski boots.

Simon Huesser:
One was kind of like, yeah, this is a reasonable amount of people, you know, ski. So a ski boot would be kind of handy. But it scored really low on knowledge of how to build a ski boot. Right. Like nearly zero. And took a lot of investment. We suspect all the plastic parts and stuff. So this is going to cost a lot.

Simon Huesser:
We don’t know much about it, but there’s a few people who ski. Global warming might have also shut that one down a little bit more. Ski fields are struggling, but the, you know, duck food truck scale would be a problem. How do you trying to do a lot of duck food trucks, you know, yet there’s McDonald’s, but how many more McDonald’s are there going to be? And I don’t know if the quackling restaurant’s going to be the next McDonald’s. So we did that and there was a couple that came out on the top that were kind of like, actually this is relatively low investment. To test the idea, we Know a little bit about the sort of industry or the technology or the way to do it, and it has the opportunity to kind of go bigger. The first one was an art. So top and opentable, top table, all of those.

Simon Huesser:
They basically connected restaurants with diners. Right. They were like a platform that brought these two people together and connected them. It’s like kind of interested in art. Artists on the whole don’t do. They do great art, but they don’t do a great job of like connecting with people who want to buy the art. And there wasn’t really this platform where people could see the art and buy it. And you do that online.

Simon Huesser:
So we use the technology, the open table, top table kind of idea. The margins are like 50%. So when, you know, if the artists are selling in galleries, they’re actually giving a massive amount to the gallery owner. What if we did this online and then there could be a print, you know, print based thing. So you’re an artist pool and you draw beautiful cats, but you’re not a great job of selling your beautiful cat artwork. So we go, Paul, how about we put them on your website? We’ll help you. You know, you draw one cat, we’ll do a limited run of help. You sell 100 of these, by the way.

Simon Huesser:
We’ll connect it to a printer and we’ll kind of. Well, you know, you can sell them and I can end up with, you know, one of your cats and other people can. And. And we do that with a whole bunch of artists and there’s like the affordable art show and you know, Wellington does a really good job of connecting those, but they don’t. I’m not sure if they have that platform to be able to sell it afterwards. So we were like, you would have to kind of do this event to kind of make it a thing. But the real long term thing would be this kind of this online trading thing where you connect the two kind of like, trade me nearly. But art focused like, this is something here.

Simon Huesser:
And I did know my cousin ran the affordable art or helped run it. And I was like, oh, this could be interesting. But it all got a little bit difficult. And she was tied up with her work and kind of not ready to go. And we were like, oh, we don’t know enough in the art community to kind of make it work. I still like the idea. But there’s now then Covid happened, so holy. Like, thank God we didn’t do that one because that would have been a really tough spot to run an event over the next you know, few years or maybe it would have gone great, who knows? So you never really know which path.

Paul Spain:
But, but the event seemed like a way to kind of seed that and connect, seed it.

Simon Huesser:
And there’s stuff like there’s, there’s a thing at Eden park which is quite good, but it’s not quite on the same scale. So we were like, this doesn’t quite feel like it’s working. But then the, the second thing on the list was these stainless steel double wall vacuum insulated beer coolers that we’d seen in the US and they’re in Walmart and they’re all over the show. Like Americans like loving these like thermally insulated drinkware cups, bottles, beer coolers. And I was like, oh, that beer cooler looks cool. I’ll buy one when we get back to New Zealand. While we’d been thinking about jobs and going for it, this was on the list. But it was kind of not really thought through because we thought I would be able to buy them in New Zealand, they probably exist.

Simon Huesser:
And then tried to buy them in New Zealand because we didn’t want to buy them while we were traveling because we were traveling light. Tried to buy it in New Zealand, couldn’t find them anywhere. We were like, okay, maybe they’re new or maybe they just, I don’t know why they’re not here for some reason. So we ended up buying one, just a random brand one from the U.S. it arrived, tried to use it, it didn’t work. Turns out New Zealand’s got different size bottles and cans than most other countries around the world. We run like a 330mil standard can and same size bottle. We also have a higher proportion of bottles being consumed than other markets.

Simon Huesser:
Somebody back in the day did a good job of convincing us that bottles were more premium. Maybe because tin used to be, I think, used in cans and it used to affect the flavor anyway. New Zealand, different size bottles and cans. So the other products around the world didn’t work for Kiwis, but we were kind of worried because Kiwis, it’s not super warm. And the attitude of Kiwis is when we spoke to a few people was kind of like, well, if you need a beer, cool, you’re drinking your beer too slowly. So we were like, okay, I don’t know if this has got legs on it, but.

Paul Spain:
And there’s that sort of aspect where, I mean, I’ve noticed this anyway with the demand for ice and a drink in the US Seems to be a lot higher than, than that, than it is here, right? That’s just kind of part and part and parcel. So there are.

Simon Huesser:
So maybe the demand and the user behavior and stuff in New Zealand was not quite there. And. But I was like, well, I want one and I can’t use this American one because it doesn’t fit. And we’re like, if I want one, there might be a couple of other people who also want them. So that’s kind of where Huski started was basically it was in New Zealand was like left off the map scenario. And I suspect the main reason was we didn’t have the right size bottles and cans so the products didn’t work. That was the main reason they weren’t here. And then, and then we didn’t know.

Simon Huesser:
Maybe the other stuff would also mean that the business wouldn’t work because of the, you know, the user behavior. People didn’t care. But that’s where we went through kind of like that was the kernel of the thing was kind of like, well, I want one. And we were like, maybe we can modify, shouldn’t be too hard to modify the design of this thing to make it work for Kiwis. So going back to that list of kind of like, has this got the potential to do it? Well, the product itself we could use. When we looked online, we didn’t need to do too much work to make it work for New Zealand. We just needed to change a few elements of the design to make it work. So cost was relatively low scale.

Simon Huesser:
Well, we could start with New Zealand and we can just buy a few hundred and we can kind of see how it goes because tool and costs are not too bad and if it doesn’t work, it doesn’t work. But there’s probably a few hundred or a few thousand dollars just to test the idea. Not like a hundred plus thousand dollars. So do we know a little bit about it? Well, I’ve drunk a few beers, so. And we’ve worked at Villa Maria and the kind of alcohol industry and mum was always like, oh man, you, you know, alcohol. Spending money on alcohol is not, you know, great way to spend money unless it’s research for your thing. So actually I’d been doing 25, however many 20 years of research to, you know, develop the perfect beer cooler. So it kind of ticked our box and we were like, actually, okay, this one’s got, this one’s got legs.

Simon Huesser:
So.

Paul Spain:
And were you far along on the, on the art one in the background or you hadn’t, you hadn’t really, you would. That was more just a kind of A research. You hadn’t.

Simon Huesser:
Research.

Paul Spain:
You hadn’t committed any money, bought a.

Simon Huesser:
Domain or two and worked up a logo and a concept. And then you’re kind of like.

Paul Spain:
So you were, you were, you were genuinely kind of weighing up your options and investing some time and effort.

Simon Huesser:
Yeah. But then the people part of it, the connection to the artist community kind of fell through and it was like pretty much a linchpinny kind of thing. We were like, this is gonna be a lot harder to do if we don’t have it. Cause at the beginning we had some interest there, and then we lost that connection to that group. And it was like, okay, now this became too hard. Let’s have a look at number two on this list. Yeah. Yeah.

Simon Huesser:
Okay. Yeah, so we’re at number two.

Paul Spain:
Okay, so you’ve moved down your list. Number two. Can you remember what number three was?

Simon Huesser:
No, I can’t. I’ve got the list somewhere. So maybe number three would have been even better. When we did number two, we read sort of the Lean Startup and a few other things and we were like, we were always of the mentality that like the art one, as soon as it doesn’t look like it’s working, we’ll move away from it. So we used to have these like pivot meetings where we’re kind of like, you know, we’d start off with nearly weekly, kind of be like, is this worth spending time? Is this not worth spending time? And be prepared to kind of cut it. That’s one of the hardest things is deciding when to drop and when to persevere, kind of. But we, I mean, we’re kind of, I would say we’re relatively risk adverse as people, so we needed to be convinced ourselves that this idea had legs. But we didn’t have that much to lose.

Simon Huesser:
Like, sure, we didn’t have, you know, huge amounts of money, but we didn’t have, we didn’t have to give up jobs. Right. That’s probably the biggest reason why people don’t do stuff is you’ve got to drop your job to kind of gonna go and follow this potential opportunity. Or you’ve got a family and you’ve got commitments, which means that you need to keep your job. And we didn’t have any. We didn’t have a house, we didn’t have kids, we didn’t have family, we didn’t have, like, we just had us. And so we didn’t have that much to do. So I was like, why not? You know, And I was kind of of the mentality of, well, I could go and try to do a masters potentially or something.

Simon Huesser:
But I was like, I don’t really. But too much theory for my liking. This would just be like a practical learning. How do you set up a business? How do you set up a company? And then we’ll just keep doing it until it, you know. And I think we decided to kind of go, okay, we’ll spend like $10,000 on it or something. And you know, that’s the, that’s a little course. So that’s just, this is just a real life course. And then we made the decision who was going to lead it.

Simon Huesser:
So I think like Micah was going to lead the, the art one, but then the beer, the beer cooler one was more my territory. So then. And we were going to like one of us would get a real job to have income and allow us to do this like, bit of a gamble on it. And even when we were doing it, we were kind of like, we’ll only take really small steps and like build and build slowly and kind of reinvest and build and reinvest. And we, it took a lot of like, we did a lot of validation. Like we spoke to a lot of people first when we had the American vehicle one and we were like, do you think this is good? Like we’d ask friends and family, but we didn’t really trust them because they were either too nice or they’re overly critical. But there was enough there to be like this. There’s enough people half interested and be like, if you’re like, look at this beer.

Simon Huesser:
Cool. You grab cold beer out of the fridge, keeps it ice cold while you drink. Double walled, vacuum insulated. How good is that? And they kind of be like, hey, it sounds all right. Like, yeah, I’d probably try it. And then, but we didn’t really trust them. And then we were like, well, we still weren’t convinced of the idea. And then we were like, how can we get more data that’s not like friends and family.

Simon Huesser:
Because we’re not sure if they’re telling us the truth. We’re like, well we should do like an online survey. So we asked, we’re like, how can we, how cheaply can we do this? You can do research groups and focus things and other agencies like, what about a community groups are like passionate about having an opinion. So whether that’s about, you know, your lost cat or a helicopter flying around or a whatever this dodgy looking car driving around the streets. So we’re like, these people have a bit of time on their hands and might be interested to share an opinion. So we’re like, why don’t we just create a Google form, put it live, like two minute survey about beer. Hey, we’re looking to think about developing this product. Would you share? And we’re like, what do you drink? How do you drink? Do you notice that your beer gets a bit warm? Would you be interested in a product that keeps it ice cold while you drink? And we got like a few hundred people complete this like in South Auckland.

Simon Huesser:
We were at the time at Micah’s parents Frankton, is it? I think around Pukakoe, Franklin District. Yeah. And they got a whole bunch of like feedback and we learned what people were drinking and how they’re drinking and that they were interested in a product that will keep keep it cool. Plus a bit of practical research of digging through recycling bins when we’re in various places to kind of see what actually people are drinking.

Paul Spain:
So we’re like in terms of the.

Simon Huesser:
Sort of size of bottles size, popularity because the, you know, stainless steel wasn’t particularly flexible so you need to get the sizing right. Which is why the American one didn’t work. And we were like, okay, actually we’ve validated the, you know, the idea of it at least. But we still weren’t super convinced because nobody had seen the product. We’d just asked in theory and we didn’t really like that theory part of it. So we ended up then going, well, how can we validate? We kind of validated the problem at that stage that people were like, oh yeah, I know my beer gets a bit warm. But they didn’t know what the solution really looked and felt like and whether they were prepared to pay for it. So then they were like, well, how can we validate the solution part of it.

Simon Huesser:
And again, we didn’t have too much money and we were like, well, what’s the cheapest way to do this? I don’t want. We could either go and make a thousand of these, but is there an easier way to validate that this is actually gonna work? I’d rather not have a thousand in a garage. We didn’t even have a garage. So where’s it gonna, like, where’s this stuff gonna sit? At this point we were house sitting, looking after other people’s pets to try to save money. So we’re kind of bouncing around Auckland, I think. What did we do? We went to the. We were like, well, we’ve got this American one, it doesn’t really fit, but it did fit Like Coronas. So we were like, why don’t we go down the viaduct and we’ll stop people on the street and we’ll ask the same questions with the online survey and then go, you know, what do you drink? How do you drink? We go, well actually I’ve got this thing.

Simon Huesser:
And then we pull it out and we go, so this is it. It’s a stainless steel double wall vacuum insulated vehicle. Put your, take your cold beer from the fridge, put it in. And people could then see the solution that we were proposing because you can keep your beer cold by drinking it in a freezer. But that’s not a great solution. So we were then showed the people and then we said, what do you think of this? And just listened to what they then held at and they were like, oh, this is kind of interesting. Oh, this would be great for my, you know, we’d start to get feedback and they were like, this would be great for my, you know, my husband or I don’t know what to get him as a gift, or my brother or my dad or my son. And we’re like, ah, interesting.

Simon Huesser:
Okay, we’re learning some stuff here. And then we said, we asked a whole bunch more questions. What do you like about it? What do you not like about it? How much do you think it should cost? And we asked, I don’t know, 50 people. Pretty uncomfortable. Like it’s not my favorite thing to do. But we were like, it’s.

Paul Spain:
But you got real feedback from real people that weren’t incentivised to say nice things. Cause they were your family mates and so on.

Simon Huesser:
On the front line of just do that uncomfortableness now. Because it would be more uncomfortable to spend six months and spend $10,000 than it would be to spend an afternoon down at the viaduct asking people. Brilliant. So we got that research and we’re like actually a decent amount of people like really interested in this thing. And they told us how much they were willing to pay for it. And the most. We learned two things. One was that people were interested in the product and two, that gifting would be a big part of the reason why people bought it.

Simon Huesser:
Which I don’t think we would have learned had we not got in front of people and asked them. So we had this information now and we’re like, okay, if we do do it, we should package it nicely because people are going to buy it as gifts. So gifting is, gifting is important. The product also we thought had to work really well because we just wanted to make something that Worked really well, but we’re kind of a bit risk adverse. Right. So we were like, I’m still not convinced. Because what we would do at the end of that is we would go, so, you know, would you be interested in buying it? And people more often not would say yes. But the we thought that asking people we’ve kind of assaulted, you know, not assaulted, but stopped somebody on the street.

Simon Huesser:
And then we’re kind of a barrage of questions which they’re not expecting on their way to, you know, lunch. And we’re going, you know, would you buy this thing? Like, they might just say yes because they’re being nice.

Paul Spain:
There’s always an element of that, especially with kiwis.

Simon Huesser:
Yeah. So we’re like, ah, can we trust these people? We can probably trust all the answers up to the yes, but it’s a good sign, but not quite enough. Okay, well, how can we. Now we’ve validated kind of the problem. We had the idea, we validated the problem, validated the solution broadly, but we hadn’t. We were like, we want to do one more thing to convince us that because we hadn’t taken any money from anybody, we’re like, how can we get money from people with a product that doesn’t yet exist? The Internet’s pretty good at taking money from people. What if we built a website that showed the product and made it transactional and you could then like see it. We run Facebook ads that we’d learned, you know, I’d been exposed to in previous jobs.

Simon Huesser:
And then we go, we serve ads and the website won’t be great because we’ll spin it up in like a week and the ads won’t be great. But if we can get like two people to buy them, then we should do it now. The problem was the product didn’t exist. But we had these American ones that worked for some. Yeah, yeah, American sized bottles like Coronas. And so we were like, okay, let’s do that. So we bought a domain, Gohusky Co nz. By that time we’d kind of settled on, you know, the name, you know, a name concept.

Simon Huesser:
Which dog works hard in the cold. Plus husky is the end part of Huesser. My last name and Micah’s maiden name kicker. And you put them together and you get husky and you’re like, oh, this feels kind of cool. Anyway, so we’re like, we’ll buy the domain, I’ll set up the website, it’ll be pretty rudimentary. Then we’ll spend like $100 on Facebook ads and we’ll see if we can get random people to buy this product. And if we can, that’s enough. We’ve validated this to the point where we’ll do it.

Simon Huesser:
So we filmed an ad in a friend’s backyard whose pets we were house sitting by the pool, you know, did like a thermal temperature time lapse test to show that it kind of worked. Bought the air, put it into an ads, got connected to the website, linked it, and then one night just were like, okay, spend a hundred dollars this week, we’ll see what happens. And the next day, there was a guy who had bought one. His name was Nathaniel. Won’t say his last name. I was like, well, first I checked and was like, is this mum? His mum bought this. But it wasn’t. It was some random person named Nathaniel.

Simon Huesser:
And I was like, all right. But we still weren’t convinced because it was like, maybe this is the one guy. Maybe this is the one guy who just randomly buys stuff on the Internet, you know, that he hasn’t seen before. So remember, we needed two. We decided that two was our thing. And then the next day another guy called Alan ordered one or two. And then I got a phone call from a guy called Frank because the phone number was on the website. He was like, or an email.

Simon Huesser:
It was an email. And he was like, I want to buy 10 of these to like brand them with my company, you know, logo on them. I was like, oh, Frank, man, that’s great. Really cool. But actually this was a bit of a smoke test just to sort of see whether it was kind of going to work. And if it was, and we’ve got enough, then we would, we would do them. The good news is we’ve just actually had, you know, three people now come. So we’re gonna, we’re gonna do it.

Simon Huesser:
He’s like, well, what’s the one in the video? And I was like, oh, it’s an American one. It doesn’t actually fit. He was like, I wanna come around and see it. I was like, all right, come around for a coffee. And then he drove around and we have a coffee and a. A chat. And I show him and he’s like, yep, when you make these, I want to. I want to buy like the first, you know, 10 or 20 to laser engrave them for the thing.

Simon Huesser:
And we were like, okay. Then we had like three. Two orders with money received and one as a sort of a very enthusiastic individual. And we did have the problem that the product didn’t exist. But I was, we were kind of like, well, we can sort that because we’ve decided to do it. And we kind of thought, yes, it’s a bit of a weird experience for the people who’ve bought it. But I was like, I’m just going to be straight up. So we emailed or called the first two guys, Nathaniel and Ellen, like, hey, this is a bit of a weird situation.

Simon Huesser:
I know you’ve bought this thing online. Actually, the product isn’t made yet, but. So I’ll give you all your money back. 40 bucks or 30 bucks a. A unit, or I’ll keep the money and you’ll get the first ones and I’ll double your order. But I don’t know how long it’s going to take because I never designed this product before. So we’ll see, you know, and they were like, both of them were sort of. This is a bit weird, but okay, keep the money.

Simon Huesser:
And then I asked them a whole bunch more questions about why they bought it. So then we had our first. It was like the world’s smallest Kickstarter. And we were like, okay, we’ll do it. And then that’s kind of where it started. That was enough at that point. That’s when we registered the business and that’s when we were like, okay, we’re in. And that’s where Meika had maybe had already started it for asb, I think, or some place.

Simon Huesser:
And I was like, okay, I’m husky. Your real job. And then we’ll see. We’ll see what happens. First handful of sales.

Paul Spain:
Yeah, that’s really cool. So, you know, walk us through how you’ve got from there to where you are, you know, today you’ve got what, in the direction of 20 people. You’ve got, you know, one and a half million sales or so around the world. You’ve drawn on all that knowledge from, you know, all your previous experience. What would you say are the, you know, the key points from there now you’re doing, you know, a broader range of products as well. You’ve got, you know, products to suit keeping wine bottles cool and, you know, even a wine glass type, you know, cup and so on. How’s that played out?

Simon Huesser:
Well, I think at the beginning we were. We didn’t know if we’re going to sell sort of 100 or a thousand. So to get to the millions mark of products sold is. Is cool, is very cool like it is. But we never really put a cap on what we thought it could be because we’d been exposed to these other companies who had kind of grown so we’re just going like, we’re going to run as fast as we can and give it the best shot that we can. And if we only sell in New Zealand and it’s just a full time job for me and we build up this kind of cool thing, then that’s winning. Do you know what I mean? Equally, if it grows bigger than that, then that’s also winning and we’ll see what happens. But the reason that we started and wanted to do it was we wanted to work in a company that we wanted to work in.

Simon Huesser:
We could build a business where we can like create products or services that we enjoyed working on. So our time and investment was building sort of back to us work with people who we choose to work with, who we enjoy working with and building a brand that kind of we can feel proud of and you know, represents the kind of values and stuff that we want. So that was kind of why we did it. So the how many we’ve sold thing, we could have achieved those with 10,000 units and we could have just so happens that, you know, it’s gone bigger than that. How we got to where we are now. So that first product was about sort of localizing an international product that didn’t work. After we launched that, the feedback was very positive and we started to get reviews coming in and we’re like, people had bought it and they’re kind of like, oh, I bought this for my dad or for my brother and I thought it was a bit of a novelty, but actually it’s really good. And then they would buy more because the product worked really well.

Simon Huesser:
And we were like, man. So the important thing is the product needs to work really well. And then we were thinking about what to do next and we were kind of like, you know, there was, you know, lots of drink bottles and coffee cups and stuff out there. We’re like, the obvious choice is kind of like that kind of more typical traditional thermassy stuff. We started to get the reviews like a constant ringing or requests for like a wine because the people who were buying it I think were in the initial research that said when we were stopping, people on the street was like, often women and they were like buying for their brother, father, son, they were the ones who would leave the reviews. And the reviews would say, my husband really likes this or whatever, what have you got for wine? Because they wanted one. And so we were hearing this and we’re like, wine’s hard because it’s different shapes and sizes of bottles. And there was nothing we’d kind of taken inspiration from these other products internationally.

Simon Huesser:
But wine, there was nothing. Was like ice buckets was kind of it. So we’re like, too hard basket. But then it just kept coming and so we’re thinking about drink bottles and stuff and like, what have you got for wine? What do you got for wine? We were down in Taranaki at Christmas and Mum and dad have a small farm. And we’re like, dad, Dad’s a fitter and turner by trade and was like, man, we. Can you help me, like, think of a way to make this. I’d sketched out some kind of rough ideas for wine. We were like, if we can do this wine thing, like, marketing 101 business 101 is like, give people what they want.

Simon Huesser:
Nobody’s asking him at this stage for a water bottle because there’s good water bottles that already exist. Like, yes, we are getting a lot of requests for a wine version of our beer cooler. You know, you take a. Take a cold bottle of wine from the fridge, put it in it just keeps it cold. There’s no condensation and no hassle. Yeah.

Paul Spain:
And no doubt you’ve been watching what was happening internationally and not, not seeing.

Simon Huesser:
A solution, not seeing a wine thing. And we were like. So we were like, all right, I reckon let’s have a crack. Let’s. Let’s try to build the. Builds like the world’s first slash best, you know, beer cooler equivalent wine cooler, double wall, vacuum insulated thing. And we jumped into it and we started, you know, we sketched a few ideas and Dad’s very hands on. And it was like, okay, let’s go to Bunnings.

Simon Huesser:
So we went to Bunnings and we were. Turns out there’s 90 mil drain pipe PVC and it’s the perfect size for making a prototype wine cooler product. And we’d. We’d played with the idea of. Because the bottles are different heights, we were like, do we put a spring in it? But we were like, it needs to be super simple because if you have too many lids, they just disappear and you’re like, off you. This Alsace bottle versus this Riesling versus this whatever. Like, they’re all different. But we worked on a design which has like a thread sort of a bolt system where you can kind of twist lock thread where you can just kind of put it on, screw it down.

Simon Huesser:
You get the pitch of the thread. Right. You get the rubber materials interacting in the right way. You can just grab your bottle, put it in the base, put the lid over top, screw it down and it just kind of self locks its way in. We were like, we’ve solved this kind of like mechanical, it’s super easy. You don’t need different lids, you don’t need whatever.

Paul Spain:
Perfect.

Simon Huesser:
And so. But it looked horrendous, right? Like it was built from downpipe, from Bunnings. So yeah, but we were like, okay, we, where’s the vehicle only worked in New Zealand. We were like, we’re going to design this product for the world. So this is where all those jobs that we’d previously like been through. And you know, the first job at Villa Maria gave me exposure to different wines, different bottle types, so understood how people drank wine. The Briscoe stuff had built in this kind of understanding of like retail knowledge at, you know, scale and that kind of mentality. Plus the, you know, foreign direct investment stuff exposed to the kind of the global audience.

Simon Huesser:
And then the, then the top table, the digital, you know, component was where it kind of all came together. So it was like pulling all this stuff. So because there’s a lot of people who start their businesses early on, I don’t think could have done that because I just didn’t have that, you know, knowledge or experience. Plus my risk profile, our risk profile. So. But pulling it all together and then with the wine cooler. So then we were like, okay, we need a design partner here who can do a really good job of taking this rudimentary kind of concept because we’ve solved the kind of mechanical issue of this thing. But it looked gross.

Simon Huesser:
So we were like, we need someone who knows industrial design. So we went around to the bunch of industrial designers and found a company called Blended Design who were like similar age to us and they just got it and they were like, we didn’t have that much money, but we were like, look, you’re keen to kind of get involved. They were interested in the product, they were interested in us. We still work with them today. And they helped us build it into not just a highly functional product, but a beautiful looking product, which we thought we needed because the development of Huski came to like, okay, it needs to be this balance of like style and performance. Yeah, because it’s going to sit on tables even more so for wine. Right. Like it’s going to be in restaurants or on things.

Simon Huesser:
So they helped us evolve the product and work on it. And then, you know, the same factory partners that we were using for the, the beer cooler helped us develop the product and it just kind of. We’d reinvested the money and you know, by this point, we’d bought a house and we had a mortgage. So we just took a bit of the mortgage money and reinvested it, you know, into the business. And so that’s where we. That was the kind of beginnings of, okay, Huski, we’re gonna design our own products, and they’re gonna be the best in the world products at what they do, which is a very specific thing. Like, this is a wine cooler, giftable wine product that works really well. And so we launched that.

Paul Spain:
Was that a hard decision to make? Because your existing business that was ticking over and working right, and you hadn’t, you know, you weren’t having, as you mentioned earlier, you weren’t having to put a whole lot of things at stake, quit your job and so on, but here you were having to, you know, dip in and borrow money from the mortgage perspective. You know, walk us through what that decision was like for you. Was it sort of super easy? You could join up the dots and see how it was gonna be successful?

Simon Huesser:
It was pretty. It didn’t feel like big decision to me at the time or us at the time, I think, because we’d kind of just reinvested the money that we had earned previously, plus a little bit extra. And we, you know, we did work out the numbers and be like, okay, if this doesn’t work, can we cover it? And we got comfortable with it. So it didn’t. And it’s not like it was $50,000 or 100,000. It was like we would do it in chunks. It would be like $10,000. And ideally that would pay back.

Simon Huesser:
So, you know, the total cost of design for the wine cooler was maybe $20,000. And we were like, okay, what’s the smallest amount that we can order? When we first did the other one, then we did pre orders to help fund the tooling for it, you know, with the people who had already bought the wine cooler. So it was always sort of a low risk approach, but then just. It’s kind of like playing blackjack or something. You kind of just double down on it. But you can influence the game because it’s your. You know, how likely you are to succeed. There was a point, I think, where Meika was pregnant with our first child, and so she was gonna have to give up.

Simon Huesser:
Cause Meika was working right, and she was gonna have to give up that job. And Huski wasn’t profitable or was sort of neutral in year one or, you know, maybe lost a bit of money in year two. But we would. We were. Cause we were reinvesting it all in product and stuff. And she was like, you know, we’re just about to launch the wine cooler and she’s like, I don’t know what, you’re going to have to go and get a job because this husky hobby that you’ve got, I’m not sure, like, wow, that was, that was. There was a moment there where I think. And I was like, I reckon this wine cooler is pretty good, eh? Like, I reckon, I reckon you had.

Paul Spain:
That, you had that gut feel, had.

Simon Huesser:
The gut feel that it was, this was the key, this was good. And I always like, worst case, I’ll go and find a job. I’ll go and be a security guard again if I need to. Do you know what I mean? Like, so it was like, what is the real risk? Well, let’s just go and get a job again. Which is the risk now. So that’s where we launched the wine cooler. We, fortunately we won a few design awards for. It functioned really well.

Simon Huesser:
People liked it and we could sell it in New Zealand. Not just in New Zealand, but around the world.

Paul Spain:
When you say you won a few design awards, you make that sort of. It’s very casual. But actually that’s not a neat, that’s not, you know, it’s not an easy thing unless you’ve. You’ve got something that really stands out. Right. How did, how did that come about?

Simon Huesser:
I think like awards are funny maybe and you go back to like wine awards, right? So wines are. You pick up a bottle and it’s 15 and it’s full of gold labels. So there is, there is sort of prestigious awards and there is less prestigious awards. Like the best design award in New Zealand is a, you know, very well regarded within New Zealand one. So that’s, that’s a really cool one to come away with. And the design partner that we had helped us, you know, be aware of these and we leverage them quite heavily in marketing and advertising because nobody’s going looking for a wine cooler. So we have to kind of, you know, be like, actually this is pretty good. I know you weren’t looking for this wine cooler product, but it’s actually won a couple of design awards.

Simon Huesser:
So, yeah, I mean, at the end of the day, we just tried really hard to design like the best product in the world at whatever it does. And we weren’t prepared to release something that wasn’t good enough. So where there’s some companies who have release schedules with products and they have to do it. We were just like, we’re just not going to Release it until it’s good enough. So we didn’t have that external pressure because we’ve been bootstrapped from the beginning because we didn’t want. We’d been in corporate jobs and there’s so much pressure like from above and below and you know, and we were like, we just don’t want that. Like half the reason is we came back to New Zealand for a better life, you know, work life, balance, all of that kind of stuff.

Paul Spain:
So the aspect of being bootstrapped or you know, self funding your business that put you in a position from a family and a lifestyle perspective where you didn’t, you had less pressure than if you were beholden to other investors.

Simon Huesser:
Less pressure, probably work more hours. Yeah, we worked, I don’t know, 60, 70 hours a week in London and it’s probably similar if not more sometimes now, but it’s different. It’s different pressure because I can influence everything. And we could. Yeah, we just didn’t have the pressure to release something that we weren’t happy with, which I think resulted in a better product which put us in a better position to you know, be award award winning in terms of, you know, the product. Actually this is just really good at what it does. And then to have the evolution of the wine cooler eventually last year the, so the best awards is kind of one of the best in New Zealand. But then the champagne cooler which was an evolution of the wine cooler, wider bottle, has a bottle stopper in the bottom.

Simon Huesser:
Winning a red dot award which is kind of globally the best product designer, well known and recognized was like a really cool. That’s like okay, this is, that’s the pinnacle, you know, to be alongside. I mean this is the award. Apple and Dyson and Ferrari win this award for some of their products. So to be anywhere near that from starting in a shed with Bunnings PVC pipe like it were like this is, this is pretty cool. While also not giving up on the stuff that’s important to us about the type of company and the types of products that we want. So I mean we’ve been around eight years and we’ve released five sort of products. So we’re pretty slow from a product release schedule standpoint.

Simon Huesser:
But I don’t know, I don’t really care like as long as the product is really good. So if we have more people and more team then maybe we can release a few things faster. But it has to be like a really good product. If it’s not good enough, we just don’t. There’s a Bunch more products that we just haven’t released because we haven’t come up with a good idea. We haven’t done a water bottle. Cause we’re like, I don’t think we’ve got the world’s best water bottle idea yet. So when we do, maybe we’ll do it.

Paul Spain:
Yeah, yeah. Now these things are never sort of a perfect straight line and you get different points where things go.

Simon Huesser:
Well.

Paul Spain:
You also get challenges. Now, when we were chatting previously, you mentioned there was another brand launch, another country that had a similar, similar sort of name, and you ended up with some challenges there. From a trademark perspective, how hard has that been to sort of walk through and to figure out, you know, what to do? Cause you can throw a whole lot of money at lawyers and processes and so on. How did that sort of make you feel when you had that challenge to start with?

Simon Huesser:
That’s probably. I think overall we’ve had a pretty good run, maybe because we do small bits and double down on things that we know that work. But there’s a few times when you’re like, you just don’t see stuff coming and. Yep, there was another company who started in Aussie and had a similar name and it’s different. They thought it was close enough to be a problem and so it resulted in like a trademark dispute. We had trademarks in New Zealand and other countries, but there was a situation in Aussie and it had, you know, five, I don’t know how many years ago, A few years ago. And it’s kind of been simmering along and trying to kind of work out an agreement to get it sorted. And that’s pretty uncomfortable because you’re like this could we do we try to invest in a few things.

Simon Huesser:
One is that, you know, the products be really good. Two is the brand is really important, especially around gifting and, and stuff in the name is important to us and we didn’t want to give it up. And so how much to invest, you know, to protect that versus, you know, the open table, top table name switch is in the back of my mind. If we needed to, would we do it? Would you have a different name in different markets that sort of screws with your scalability and, you know, makes life difficult. So we were fortunate that we had again, like a really good IP legal partner to help us navigate a few of those design things. And we protect our designs and you know, we file for trademarks and it’s just, we’re just coming out the other side of the trademark dispute now. Having reached an agreement and but it does have an impact on what Huski looks like going forward, which is pretty uncomfortable because we don’t want to be restricted in anything that we do because our product strategy is kind of like we design for ourselves and our friends and our family, and that represents a wider proportion of the public and has kind of been like, take over the cupboard. Like, look in the cupboard, look what products we use.

Simon Huesser:
And then go, can we make a better version of that? And should it be Huski? Yeah. And the issue on the trademark stuff centered around cups and a few other bits and pieces. And will we want to, you know, we do wine tumblers and flutes and stuff like that. So eventually we got to it, but the dispute was doing sort of hot drinks. Huski is more well known for coolers and, you know, wine and champagne flutes and various. But we do have, like, products like this, like a short tumbler that’s used for coffee and hot drinks as much as gnts. But we were like, look, we want to. We want to clear this pathway and we want to have a global thing, but we want to protect Huski as much as we can as a brand, and we want to continue to invest and develop in it.

Simon Huesser:
So the agreement going forward will mean that. And this is very recent news, but it will be that Huski can continue to be used for essentially like, cold drink wear and other related things. So it means that, you know, we can still sell beer coolers and big can coolers and wine coolers and all that kind of stuff.

Paul Spain:
Keep focused on.

Simon Huesser:
Keep focused on your core. What is 95% of the revenue that. Yeah, that comes in. But it’s kind of like you have to cut off a, you know, finger to save the rest of the body or a hand. And so what that means is, like, from the beginning of next year, we won’t be able to sell hot drinks products that are related to hot drinks or coffee. So that hurts, right? Because the. Our growth product. That was future.

Simon Huesser:
That was. That was it like, these are in the cupboard. I use a hot coffee. So how can we be okay with that? And the trademark dispute was around the name. So we’re like, well, we’ll be pragmatic about it. Do you know what I mean? So let’s have a think of another name. So we’ve been sort of marinating on different names now. Huski is sort of safe and locked down for that kind of core thing.

Simon Huesser:
So in the next couple of months, we’ll be releasing a new range in products under the brand Smoco. Smoco kind of has this legacy of like, you know, drinks and, you know, at work and you take a, take a break. And so we’re going to launch that and that will be focused on all of the things that we’re not allowed to do because also if somebody says to you you’re not allowed to make a hot coffee cup, like we’re going to make the world’s best hot coffee cup, you know, so that we’ll see where that ends up, you know, as a thing. But we’re going to get it out there. We’re going to rebrand the current product, single product that violates the agreement that we’ve got, that will become a Smoko Short tumbler. And then we will go and develop that. So now we’ve got a plan for kind of what this looks like and where Huski is kind of about, you know, cold and kind of predominantly like alcoholic, kind of focused and more social as a brand because you’re drinking with mates usually if things are going all right. And Smoko will be more of a hot focus brand and sort of non alcoholic.

Simon Huesser:
So think drink bottle, think, you know, coffee cups, think stuff that you might take to work, you know, to keep your, your food and drinks like at the perfect temperature for longer and more of like a personal use thing. So, you know, whereas like a, a wine cooler you’ll use with a group of friends, you’re probably less likely to share your coffee cup, you know, with somebody at work. So there’s a whole new world for us of going, okay, how do we develop this and how do they work? How does that work alongside Huski as a brand? But we’re just going to give it our best shot of doing it. It’ll have the same amount of effort and passion and care that goes into developing a, A, you know, a Huski product. So we won’t be expecting too many products too quickly, but the ones that we do make hopefully do a really good job of what they’re supposed to do. So exciting. Yeah, we’ll see where that kind of, that’s. Yeah, we’ll see where it takes us, you know, and you just kind of run, roll with the punches a little bit.

Simon Huesser:
Yeah. Yep.

Paul Spain:
Oh, that’s the next phase. Yeah, I think we’ll probably, we’ll try and, you know, track some of these future things and update there in the future. And lastly, you know, what advice would you give for others that are in business or wanting to be in business? What would be your top tip?

Simon Huesser:
I would say you don’t have to invest everything to give something a shot. You can try at a relatively small scale to see whether it’s in there. So I think for a long time, when we were first coming up with ideas, we thought we needed to be at the very beginning, the world’s best at what it is. And you have an idea and then you’re like. Then you Google it and then you find that somebody else has done something similar to your idea and then you’re like, it’s already been done. Everything has already been done. Nearly everything has been 80% or 90% always been done. So if you change the mindset a little bit and you go like the guy who did the second brand of T-shirt, if he looked and he went, somebody’s already made T-shirts.

Simon Huesser:
You know how many brands of T-shirts are out there? Like, you don’t have to be the world’s best at the beginning to test out a thing and you can focus on a slightly different audience or it can be, you know, the first T-shirt might have been a. Just a normal casual wear, and the next one’s a little bit more active wear, it’s a bit more breathable, and then the next one’s a bit this and a bit that. So you don’t have to have the best thing. So I guess I’d say to so many people at where we were, where you’d work for 15 years in normal jobs, and they have these ideas, but they. They set the bar maybe too high. Yeah, Maybe there’s a way that you can test out your idea and have a play with it. Because I bet you there’s world killing ideas that are buried away in a closet somewhere where they just kind of haven’t done it. I would pair this advice with be careful of anyone who gives too much advice.

Simon Huesser:
So, you know, grain of salt kind of thing. So, yeah, maybe there’s something in that. Yeah.

Paul Spain:
Oh, there’s a lot packed up in that chat. So, you know. Thank you very much, Simon Husser.

Simon Huesser:
Cheers, mate.

Paul Spain:
Yeah, really looking forward to following what’s Next and the Huski story. And, yeah, be trying out a few.

Simon Huesser:
More of your products. Cheers, mate. See if we can get a smoko cup in your hands.

Paul Spain:
Sounds good.

Simon Huesser:
All right, thanks, man. Cheers.

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