Technology Investment Network (TIN), a private company that supports New Zealand technology exporters, says the top 200 hi-tech companies have achieved annual revenues in excess of $10.0B for the first time, and their $7.3B of exports now account for 10 percent of total exports.
The figures come from TIN’s just released TIN Report, produced with sponsorship from New Zealand Trade & Enterprise, Callaghan Innovation, Spark, EY and AJ Park. It said fintech, digital media and agritech were the fastest growing market sectors.
TIN said the TIN200’s exports put the group in third place behind the contributions of dairy and tourism as a source of offshore revenue. “Two thirds of the offshore revenue growth can be attributed to a robust 18.8 percent increase in TIN200 revenues in the North American market,” it said.
TIN managing director, Greg Shanahan said 2017 had been a defining year for the TIN200 companies. “We’ve seen a sustained increase of around eight percent in both revenue growth and exports but more significantly, the real story is in the integral part that the technology sector now plays in the country’s economy,” he said.
“TIN200 companies created 4,352 new jobs to employ over 43,000 staff globally with an average salary of just under $84,000. The broadening economic impact of this growth is creating opportunities throughout New Zealand society.”
TIN said tech industry growth had been concentrated outside of Auckland. “This year has seen Hamilton, Wellington and the South Island regions leading TIN200 growth. These regions each grew by over 10 percent and collectively accounted for more than 60 percent of total TIN200 revenue growth, but only 40 percent of the total TIN revenue.”
According to the report companies with over $20M revenue grew at twice the rate of companies below $20M. The 90 companies with revenues $20m and over grew at 8.4 percent, compared to 3.8 percent revenue growth for the 110 companies with under $20M in revenue.
Māori TIN200 members generate $93.9M revenues
This year’s report was the first to provide data on Māori tech companies. It estimated that five prominent Māori owned or Māori investment-backed companies had generated $93.9M of this year’s total TIN200 revenue.
Waikato Milking Systems was the highest ranked TIN100 company in 38th place. Straker Translations, Sentient Software and Animation Research either retained or gained places on the TIN rankings this year. IT healthcare solutions provider Whanau Tahi joined the TIN200 ranks.
“As well as the established players, the 2017 report also found that a strong and diverse pipeline of up-and-coming Māori companies exists, TIN said. “It outlines several government-led initiatives that have been introduced to encourage Māori to leverage the many opportunities presented by technology.”