2024 New Zealand Healthtech Report
Author
ALEX DICKSON
A seasoned research professional skilled in quantitative and qualitative reporting, analysis and publishing. Most recently, as Head of Research at Technology Investment Network, I've been delivering business intelligence and public reports covering New Zealand tech sector performance.
Below is a selection of publicly available reports I've co-ordinated, researched, designed, authored and edited (where indicated), alongside a sample of news media appearances and public relations work undertaken in NZ (tech sector) and the UK (tech & energy sectors).
PUBLIC REPORTS
2024 New Zealand Fintech Report
Author
2023 New Zealand Advanced Manufacturing Report
Author
Aotearoa Edtech Excellence
Editor
Aotearoa Open Finance & Digital Equity
Editor
2023 New Zealand Technology Investment Report
Author
2022 New Zealand Technology Industry Analysis
Author
2023 New Zealand Technology Industry Analysis
Author
2024 New Zealand Technology Industry Analysis
Author
New Zealand Defence White Paper: Public Consultation Report
Author
The Future of Switching
Author
2023 Auckland Technology Sector
Author
NEWS MEDIA (NZ/AUS)
Labour market under further pressure as NZers head overseas
TIN head of research Alex Dickson said New Zealand had spawned a critical mass of profitable tech firms with global reach over the past two decades.
"A feature of these companies is their use of dynamic hiring strategies that balance onshore and offshore expansion," Dickson said.
"A feature of these companies is their use of dynamic hiring strategies that balance onshore and offshore expansion," Dickson said.
NZ's healthtech exports soar, but lag behind global peers
"After a period of rapid growth, New Zealand healthtech firms are adjusting to a more stable demand environment," report author and TIN head of research Alex Dickson said.
The healthtech sector's revenue grew 2.4 percent in 2023, with 89 percent - or $2.35b - generated overseas.
About 12 percent of total revenue was used to fund research and development.
"This hints at a play for longer-term, more sustainable growth," Dickson said.
"Established Kiwi firms like Orion Health, Aroa Biosurgery, and AFT Pharmaceuticals, among others, are building a broad spectrum of success, beyond the niche solutions and markets they started in."
But he said investment was lagging behind other developed countries, with a 10 percent increase to $66.8m invested in 2023.
"A pain point is the level of investment reaching early-stage companies, which is peanuts compared to the likes of Ireland, Denmark, and the Netherlands.
The healthtech sector's revenue grew 2.4 percent in 2023, with 89 percent - or $2.35b - generated overseas.
About 12 percent of total revenue was used to fund research and development.
"This hints at a play for longer-term, more sustainable growth," Dickson said.
"Established Kiwi firms like Orion Health, Aroa Biosurgery, and AFT Pharmaceuticals, among others, are building a broad spectrum of success, beyond the niche solutions and markets they started in."
But he said investment was lagging behind other developed countries, with a 10 percent increase to $66.8m invested in 2023.
"A pain point is the level of investment reaching early-stage companies, which is peanuts compared to the likes of Ireland, Denmark, and the Netherlands.
Healthtech export growth, but investment concerns
Despite the challenges, however, Dickson says he sees plenty of growth potential for the sector.
“Health systems are experiencing huge financial and operational pressures, with staff shortfalls forecast to exceed 10 million by 2030. Healthcare also remains one of the least digitised of the major global industries.”
Eighty-nine percent of New Zealand’s healthtech revenue is coming from offshore, with offshore growth marginally ahead of overall growth, up 2.9 percent. The US is a ‘real prize’ of a market for Kiwi companies, with its profit-driven system, per-capita health spending that towers over everyone else and healthcare delivery that is underperforming.
“This adds up to a tech hungry market,” Dickson notes.
“Health systems are experiencing huge financial and operational pressures, with staff shortfalls forecast to exceed 10 million by 2030. Healthcare also remains one of the least digitised of the major global industries.”
Eighty-nine percent of New Zealand’s healthtech revenue is coming from offshore, with offshore growth marginally ahead of overall growth, up 2.9 percent. The US is a ‘real prize’ of a market for Kiwi companies, with its profit-driven system, per-capita health spending that towers over everyone else and healthcare delivery that is underperforming.
“This adds up to a tech hungry market,” Dickson notes.
New Zealand's health-tech export sector more than doubled in past decade
"The pandemic created a high tide of health-tech enthusiasm, fueling investment, development, and uptake. That tide has now subsided, leaving a tougher landscape of catch-up regulation, integration challenges, and scarcer investment capital," said report author TIN Head of Research Alex Dickson.
Investors target earlier stage healthtech companies
TIN Head of Research Alex Dickson said the pandemic created a high tide of healthtech enthusiasm, fuelling investment, development and uptake.
"that tide has now subsided, leaving a tougher landscape of catch-up regulation, integration challenges and scarcer investment capital."
"that tide has now subsided, leaving a tougher landscape of catch-up regulation, integration challenges and scarcer investment capital."
Startup scene’s changing fortunes
Alex Dickson, head of research at New Zealand’s TIN (Technology Investment Network), says both New Zealand and Australia are seeing tougher times for tech investment currently, but Australia’s size with greater domestic market opportunities, and more mature and plentiful funding scene, is providing a buffer for the country’s startups.
Fintech grows four times faster than tech industry
Despite the rapid growth, the sector was yet to realise the gains offered by open banking, which had been held back by the lack of consumer data right legislation in New Zealand, despite being identified as a priority in 2019.
"The fintech sector will be relieved to see the Customer and Product Data Bill take its first legislative steps," report author Alex Dickson said.
The bill to support consumer data rights was still winding its way through the parliamentary legislative process.
"The fintech sector will be relieved to see the Customer and Product Data Bill take its first legislative steps," report author Alex Dickson said.
The bill to support consumer data rights was still winding its way through the parliamentary legislative process.
Financial technology sector investment has 'fallen off a cliff'
TIN head of research Alex Dickson said investment had fallen off in line with the increase in interest rates.
"The macroeconomic climate has sort of deteriorated and money has become more expensive, globally investment and fintech has sort of fallen off a cliff," he said.
"And because a small number of international-led deals really drive the numbers up for New Zealand, when that money evaporates the bars plummet on the graph."
However, Dickson said the sector had a positive outlook and was responding with better cost control.
"There'll definitely be some fintech companies out there that are seeing their funding runways coming towards the end."
He said the outlook for the sector was brighter with open banking expected to give the fintech sector a boost from the second half of the year.
"The macroeconomic climate has sort of deteriorated and money has become more expensive, globally investment and fintech has sort of fallen off a cliff," he said.
"And because a small number of international-led deals really drive the numbers up for New Zealand, when that money evaporates the bars plummet on the graph."
However, Dickson said the sector had a positive outlook and was responding with better cost control.
"There'll definitely be some fintech companies out there that are seeing their funding runways coming towards the end."
He said the outlook for the sector was brighter with open banking expected to give the fintech sector a boost from the second half of the year.
The new norm? Raising startup money in 2024
TINs head of research Alex Dickson tells Shoeshine global capital pools had "evaporated", valuations were falling, and the trans-Tasman IPO pipeline has "withered", meaning it was a tough time to secure new or follow-on cash.
Kiwi tech firms are increasingly global employers
“The rapid rise in offshore employees to exploit global revenue opportunities and counter local skills gaps means that hiring and managing a workforce in multiple markets is becoming the norm for New Zealand’s big tech employers,” says Alex Dickson, Head of Research at the Technology Investment Network."
Our tech companies are going global at an accelerating rate
"Hiring in multiple different jurisdictions and unfamiliar markets brings its own risks and challenges for scaling companies who need to adopt a new global workforce mindset" says Alex Dickson, head of research at TIN.
NZ's top 200 tech exporters hit $17b
Speaking to iStart ahead of today’s launch of the TIN Report, Alex Dickson, report author and TIN head of research, says in the next decade the sector could double to over $30 billion for the TIN 200 companies – so long as skills and capital are forthcoming.
“The growth of the New Zealand tech sector over the last five years has been strong and reliable and it has accelerated a little bit in the last couple of years.
“The world is looking for solutions that make commerce more efficient, improve agri particularly in respect to carbon emissions and there’s always demand for new technology in health care and those are all things New Zealand does well, and it seems to be working for us so far.”
“The growth of the New Zealand tech sector over the last five years has been strong and reliable and it has accelerated a little bit in the last couple of years.
“The world is looking for solutions that make commerce more efficient, improve agri particularly in respect to carbon emissions and there’s always demand for new technology in health care and those are all things New Zealand does well, and it seems to be working for us so far.”
Offshore growth drives revenue for Kiwi tech firms
"Tech is New Zealand's second-largest source of offshore cash after dairy. And it's only growing in size - it's doubled since 2013," TIN report author Alex Dickson said.
"That means there's a critical mass of large, profitable firms with global reach and the wherewithal to develop new innovative products and services."
"That means there's a critical mass of large, profitable firms with global reach and the wherewithal to develop new innovative products and services."
TIN200 survey: Kiwi tech sector booming, but fewer local jobs
Another striking stat: The number of foreign-owned tech firms has increased from 21 to 44 (the TIN comprises NZ-founded firms, who remain on its index if they keep substantial operations here).
Foreign investment often gives a tech company the wherewithal to accelerate global growth.
But it can also shift the centre of gravity. Next year, TIN researcher and report author Alex Dickson expects offshore staff will outnumber those employed locally.
Foreign investment often gives a tech company the wherewithal to accelerate global growth.
But it can also shift the centre of gravity. Next year, TIN researcher and report author Alex Dickson expects offshore staff will outnumber those employed locally.
Survey finds NZ tech sector booming, but fewer local jobs
Next year, report author Alex Dickson expects offshore staff will outnumber those employed locally. Firms like Rocket Lab (with 1650 staff total and 730 in NZ), Xero and Pushpay (sold to a US private equity firm earlier this year) now employ more staff overseas than NZ.
Tech’s top 200 growing in double figures, again – report
TIN's head of research Alex Dickson noted that, in the 10 years since the organisation has been publishing the annual report, it had seen the total revenue-based value of the group of companies double, and the number of companies grossing $50m or more also nearly double from 33 to 65.
Kiwi startup funding rose nearly 8% to NZ$726 million in 2022
As global venture funding fell between 32-35% in 2022, funding for NZ tech grew by 8.2% last year, driven by offshore-led investment, which surpassed NZ$400 million, up from $288m in 2021...
Behind NZ's record tech investment
But report author Alex Dickson told iStart that investment has swung back up again in 2023, with some significant investments this year.
Those deals include Halter’s $85 million series C raise in March, $35 million for Hnry, and $13 million for Toku Eyes, which has developed an AI-powered platform, using retinal imaging to measure cardiovascular risk.
Those deals include Halter’s $85 million series C raise in March, $35 million for Hnry, and $13 million for Toku Eyes, which has developed an AI-powered platform, using retinal imaging to measure cardiovascular risk.
Kiwi tech investment hits all-time high
"Historically, access to capital has been the challenge for Kiwi tech companies, but the quantum of investment we are now seeing suggests there has never been a more exciting time to be part of the ecosystem," TIN head of research Alex Dickson said.
"There's no shortage of highly eligible tech start-ups in New Zealand, and thanks to a now vibrant domestic funding circuit, many can and do find purchase at the early stages," he said, though noted there was still a long way to go to match the investment other like-sized economies achieve.
"Our investment pool still remains shallow compared to other small, advanced economies - the likes of Finland, Ireland and Estonia," Dickson said.
"As always, Kiwis need to work harder to attract the long arms and deep pockets of foreign investors. 2022 shows that even a small number of offshore-backed deals can really turn the dial for the ecosystem as a whole."
"There's no shortage of highly eligible tech start-ups in New Zealand, and thanks to a now vibrant domestic funding circuit, many can and do find purchase at the early stages," he said, though noted there was still a long way to go to match the investment other like-sized economies achieve.
"Our investment pool still remains shallow compared to other small, advanced economies - the likes of Finland, Ireland and Estonia," Dickson said.
"As always, Kiwis need to work harder to attract the long arms and deep pockets of foreign investors. 2022 shows that even a small number of offshore-backed deals can really turn the dial for the ecosystem as a whole."
NZ tech industry defies 'global funding crunch' by attracting record investment
Tin research head Alex Dickson said the pool of investors funding technology businesses remained shallow and New Zealand businesses still needed to “work harder to attract the long arms and deep pockets of foreign investors”
New report looks deeper into Auckland's globally-focused tech industry - Idealog
Head of Research at TIN, Alex Dickson, says Auckland has been leading the charge in New Zealand’s race to improve productivity and diversify trade.
“Our research shows the region’s tech employees are some of the most productive in the land, helping local tech firms compete successfully in global markets,” says Dickson.
Auckland alone is a “portal” for $6.8 billion of tech-based trade and is increasing this amount by the day.
“Our research shows the region’s tech employees are some of the most productive in the land, helping local tech firms compete successfully in global markets,” says Dickson.
Auckland alone is a “portal” for $6.8 billion of tech-based trade and is increasing this amount by the day.
Accentuating the positive for 2023 - Exporter Today
TIN Head of Research Alex Dickson believes there is a growing sense of confidence in the technology sector and by those people invested in it.
“By the numbers, we see our tech companies supporting much-needed export diversity, productivity and income assurance as New Zealand plots a path to recovery,” he says.
“Tech companies added more than a billion dollars of revenue growth and $960 million in export growth to New Zealand’s economy over the past year.”
Dickson adds that the sector’s breadth of export destinations, ability to absorb shocks and avoid conflict with climate goals is a major asset towards achieving its goals.
“By the numbers, we see our tech companies supporting much-needed export diversity, productivity and income assurance as New Zealand plots a path to recovery,” he says.
“Tech companies added more than a billion dollars of revenue growth and $960 million in export growth to New Zealand’s economy over the past year.”
Dickson adds that the sector’s breadth of export destinations, ability to absorb shocks and avoid conflict with climate goals is a major asset towards achieving its goals.
Kiwi tech exports jumped 9% last financial year to NZ$15 billion
Alex Dickson said “By the numbers, we see our tech companies supporting much-needed export diversity, productivity, and income assurance as New Zealand plots a path to recovery. Tech companies added more than a billion dollars of revenue growth and $960 million in export growth to the country’s economy over the last year. The sector’s breadth of export destinations, ability to absorb shocks and avoid conflict with climate goals is a major asset in this regard.
Dickson said that on its current trajectory, tech exports will hit $20.5 billion by 2027, but challenges like attracting, training, and maintaining skilled talent remain an obstacle.
Dickson said that on its current trajectory, tech exports will hit $20.5 billion by 2027, but challenges like attracting, training, and maintaining skilled talent remain an obstacle.
South has fastest tech sector growth
In a statement, TIN head of research Alex Dickson said New Zealand tech companies were competing and winning overseas in a time of global economic uncertainty, and there was a growing sense of confidence in the sector and by those invested in it.
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NEWS MEDIA (UK)
Landlords overstating how energy efficient properties are in online listings
Switchcraft surveyed local authorities, which will be responsible for enforcing the energy efficiency rules, and found that several do not have the resources to properly enforce the policy. Just under half of councils did not submit a report on energy efficiency in 2017, as they were supposed to, while 59pc are not “directly targeting landlords”, Switchcraft said...
Energy auto-switching sites 'can leave customers paying more'
Alex Dickson, head of research at auto switch site Switchcraft, said: “Auto switching has revolutionised the UK energy landscape by helping hundreds of thousands of households engage an overly complex utility market and cut their energy bills by some £80m. After decades of ring-fencing customers, energy suppliers are now coming to terms with a new more flexible switching system.”...
EDF cuts energy bills by up to £17 a year - but you could save hundreds of pounds by switching
MILLIONS of EDF customers will see energy bills fall from April as the provider cuts prices in line with the regulator's new cap.
Alex Dickson, head of research at energy switching tool Switchcraft.co.uk, added: “If consumers think the cap will protect them from paying over the odds for energy, they are sadly mistaken...
Alex Dickson, head of research at energy switching tool Switchcraft.co.uk, added: “If consumers think the cap will protect them from paying over the odds for energy, they are sadly mistaken...
Energy bills: Why billpayers could get £30 from May 2020 after 'massive win' for consumers
Alex Dickson, head of research at Switchcraft.co.uk, commented: “The regulator's decision to move ahead with automatic compensation is a massive win for consumers, and ultimately the UK energy industry as a whole...
Energy price cap to fall by £17 a year - but you can switch and save now
MILLIONS of households will save £17 a year on their energy bills after energy regulator Ofgem announced plans to lower its price cap. Alex Dickson, head of research at energy switching tool Switchcraft.co.uk, said:..
Change to rules on energy bills is great news for 11 million homes
Alex Dickson, head of research at Switchcraft.co.uk, said:
"The gap between the default price cap and market-leading energy deals is as wide as it's ever been. A full £375 separates Ofgem's new ceiling price from the cheapest deal available to consumers today...
"The gap between the default price cap and market-leading energy deals is as wide as it's ever been. A full £375 separates Ofgem's new ceiling price from the cheapest deal available to consumers today...
Energy price cap to fall this summer but switch now to save £300
Alex Dickson, head of research at auto switching site Switchcraft, said “Instead of encouraging consumers to engage the market, the cap is a voice that says ‘don’t worry, you can’t be overcharged anymore.’ Consumers need to be told in the clearest possible language they’re out of contract; at the moment the opposite is happening.”
Energy prices to drop for 15m households as Ofgem lowers cap
Alex Dickson, head of research at Switchcraft, an auto-switching service, said: “The gap between the default price cap and market-leading energy deals is as wide as it has ever been,” he added, and called on suppliers to scrap names such as “flexible”, “basic” and “simple” from their tariffs...
Radio 4 - You and Yours, Cold Tenants, Travel Insurance, Wrong Pet Breed
Research by Switchcraft, an energy auto-switching service that helps people in fuel poverty, shows that more than a quarter of a million landlords are still renting out homes that don't comply. We speak to a tenant who's been living in a freezing cold property for three years and Richard Lambert, Chief Executive of the National Landlords Association.
Thousands of landlords risking £5,000 fines ahead of energy efficiency deadline
Switchcraft, a switching service, analysed more than 18 million energy performance certificates (EPCs), which rate a property's energy efficiency. It found that more than 250,000 investors are yet to carry out vital upgrades ahead of the new regulations...
Energy price cap predicted to fall
Experts predict the cap will fall due to a drop in wholesale prices.
According to auto-switching site Switchcraft, wholesale gas prices are 20% lower than they were when the price cap was last set...
According to auto-switching site Switchcraft, wholesale gas prices are 20% lower than they were when the price cap was last set...
Is your landlord breaking the law by renting out a cold home? How to check
Switchcraft's research found that tenants paying up to five time more for their heating due to poor energy efficiency.
“Tenants living in rentals rated F or G are the worst affected, with some paying over £2,000 more a year to live in some of the UK’s coldest, and soon to be illegal, homes.”
“Switchcraft is urging all renters to check if their property meets new minimum standards, whether they’re in the middle of a tenancy or beginning a new one.”...
“Tenants living in rentals rated F or G are the worst affected, with some paying over £2,000 more a year to live in some of the UK’s coldest, and soon to be illegal, homes.”
“Switchcraft is urging all renters to check if their property meets new minimum standards, whether they’re in the middle of a tenancy or beginning a new one.”...
Energy bills warning: Brits urged to watch out as overnight price hikes are just days away
In a bid to help members of the public to get on top of their energy bills this winter, Alex Dickson, Head of Research at Switchcraft has offered some top tips on how billpayers can make their money go further...
Energy switches reach record highs
What can consumers do if they want to switch energy suppliers?
New products and apps have sprung up to help consumers who want to change their energy provider. Switchcraft, for example, is a free service that automatically switches its customers to cheaper energy providers.
New products and apps have sprung up to help consumers who want to change their energy provider. Switchcraft, for example, is a free service that automatically switches its customers to cheaper energy providers.
The clever service that can save you hundreds a year on home energy bills
‘Opaque’ wholesale market propping up energy bills
Efforts to lower energy bills, such as the price cap on default tariffs, will continue to flounder so long as most gas and electricity is bought and sold through “opaque” bilateral contracts or supplied to consumers without being traded at all, Switchcraft has argued.
Start-ups put their faith in tech for good
Switchcraft comments on the role of fintech in helping vulnerable consumers...
Unlimited Energy Tariffs | Unlimited Energy
Depending on your current gas and electricity consumption, getting an unlimited energy tariff could be the way to go. Although rare in the energy market, some households are opting for paying a lump sum to enjoy as much energy they use. Read on to find out why.
What is the Energy Price Cap? | Energy Price Cap
If you’re confused about energy price caps, you’re not alone. We’ll breakdown what energy price caps are, how they work, and how they apply to you as an energy customer.
What is the energy price cap?
An energy price cap is a maximum price an energy supplier can charge for a unit of energy, measured in kilowatt-hours – kWh...
What is the energy price cap?
An energy price cap is a maximum price an energy supplier can charge for a unit of energy, measured in kilowatt-hours – kWh...
How to make your home warmer this winter
Discover ten ways to make your house warmer and save on heating bills in the winter. With the seasons changing, now’s the perfect time to make adjustments to your home to ensure the incoming winter chills stay outside.
Don't let energy giants hoard your cash
A study of thousands of online reviews left by customers over the past three years shows the extent of sly increases to direct debit payments and unacceptable delays in making refunds by many gas and electricity providers. The investigation by Switchcraft, a service that automatically moves consumers to cheaper tariffs, shows that nearly a quarter of customers’ complaints related to overcharging or having direct debits increased – despite being in credit.
Energy discounts that could knock £100s off your winter bills if you apply now
So what can you do to save on your bills over the coldest season?
Well, you have six options - and we've run through these with the team at auto-switching service Switchcraft, below.
Well, you have six options - and we've run through these with the team at auto-switching service Switchcraft, below.
Energy giants sit on £1.5bn of your cash: How to demand a refund
Alex Dickson, head of research at Switchcraft, says the practice is allowing suppliers to play 'banker' with customers' money. He says: 'Households are being treated more like micro-lenders than energy customers. If a supplier has 10,000 customers in credit by just £20, that's a £200,000 interest-free loan to buy energy, cover business operations or invest in further growth.'
Toto Energy becomes 16th small supplier to go bust in less than two years
Alex Dickson, head of research at Switchcraft says: ...
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