Strengthening the trade and entrepreneurial links between New Zealand and the United States

Associate Professor Ehsan Vaghefi – Founder and CEO of Toku Inc

As New Zealand’s business leaders prepare to gather at the United States Business Summit in November, there’s much to celebrate—and anticipate—about the relationship between our two nations. The summit, hosted by the American Chamber of Commerce, comes at a pivotal moment, with the upcoming U.S. presidential election shaping global expectations. Yet, as geopolitics evolve, so does the steady expansion of trade and entrepreneurial connections between New Zealand and the United States.

New Zealand’s trade relationship with the U.S. is stronger than ever, with exports reaching NZ$14.6 billion in the year ending March 2024, making the U.S. our second-largest export market, surpassing Australia. This growth, largely driven by a 16% rise in services and a 5.8% increase in goods, highlights the immense potential for New Zealand businesses seeking to expand into the U.S. market.

But – beyond these statistics lies the stories of the people driving these entrepreneurial ventures. Many of these talented people initially developed their capabilities through the University of Auckland’s Centre for Innovation and Entrepreneurship (CIE).

For over 20 years, CIE has fostered an entrepreneurial ecosystem encouraging ambitious individuals to think globally. Alumni of the Centre have taken their ventures abroad, particularly to the United States, where the innovation ecosystem provides fertile ground for growth. Since its inception, CIE has helped ignite over 292 ventures, collectively raising more than $4 billion in capital. Many of these ventures are playing a key role in strengthening the bilateral relationship.

One standout example is Toku Inc., which develops tools using AI and retinal photography to enable accessible healthcare for early and accurate diagnosis of health conditions, including cardiovascular diseases. Developed by Ehsan Vaghefi, Associate Professor of Optometry and Vision Science and a CIE alumnus, Toku is an excellent example of how research-informed ventures have the potential for exponential impact.

Last year, Toku won a rare spot in the US Food and Drug Administration’s fast-track approval programme and scored another FDA fast-track this year for a program designed to detect chronic kidney disease. Toku is currently used in hundreds of locations globally and this year won the Supreme Award and the Technology Innovation category at the Auckland Chamber of Commerce Awards.

Another example is Halter, an innovative agritech company founded by Craig Piggott, a CIE alumnus who participated in the Centre’s Velocity programme. Halter’s smart collar technology, which helps farmers manage cattle using solar-powered virtual fencing, has been rolled out across multiple U.S. states, including California and Texas. With over 200,000 cattle already under Halter’s management globally, including in the U.S., the company’s success is emblematic of New Zealand’s ability to export not just goods but cutting-edge technology solutions that address critical challenges in sectors like agriculture.

Spalk, a sports commentary platform that allows viewers to choose alternative commentaries for live events in dozens of languages, is another success story. Co-founded by CIE alumni Ben Reynolds and Michael Prendergast, Spalk now has operations in New York and has partnered with major U.S. investors. The company provided commentary for over 30,000 live sports events last year, including the Super Bowl and the Major League Baseball World Series. Their journey from a student idea at the University of Auckland to a global player underscores the deep connections between CIE and the U.S. entrepreneurial ecosystem.

CIE’s Vanguard programme further strengthens these ties by immersing high-achieving students in the heart of Silicon Valley’s innovation scene. Each year, a select cohort travels to California to meet with venture capitalists, tour iconic companies like Google and Facebook, and connect with alumni who have found success in the U.S.. This hands-on experience, supported by philanthropist Tony Falkenstein, ensures that New Zealand’s next generation of entrepreneurs understand the global business landscape and build the networks necessary to succeed in the U.S.

As New Zealand’s trade relationship with the United States grows, fostering these entrepreneurial links is essential. The U.S. remains New Zealand’s top market for services exports, with sectors like telecommunications, computer services, and research and development showing particular strength. This complements the rise of companies founded by Kiwis like Wayve, which uses artificial intelligence to advance self-driving vehicle technology. Co-founded by CIE alumnus Alex Kendall, Wayve raised over $1 billion in capital and now has offices in Silicon Valley.

With the United States Business Summit fast approaching, the stage is set for business leaders, policymakers, and innovators from both countries to explore new avenues for collaboration. Prime Minister Christopher Luxon will outline how the New Zealand government views the evolving relationship, and entrepreneurs like Rob Coneybeer, co-founder of Shasta Ventures, will provide insights into the latest trends in venture capital.

While trade statistics tell a story of growing economic ties, it is the personal stories of entrepreneurs—many of whom honed their skills at the Centre for Innovation and Entrepreneurship—that truly highlight the strength of the relationship. As New Zealand companies continue to innovate and expand into the U.S. market, the Centre’s role in fos

Rod McNaughton is a Professor of Entrepreneurship and the Academic Director of the University of Auckland Business School’s Centre for Innovation and Entrepreneurship.