New Zealand may be geographically small, but it has a highly developed and diverse economy that’s driven by a combination of agriculture, manufacturing, technology and services.
Agriculture remains a cornerstone of the economy, with dairy products, meat and wool being major exports, particularly to countries like China, Australia and the United States. The country’s fertile land and innovative farming practices have made it a global leader in agricultural efficiency.
Tourism is another key sector, attracting millions of visitors annually who come to explore New Zealand’s breathtaking landscapes, including beautiful areas like Milford Sound and the Southern Alps.
The more adventurous among us may choose to rather engage in adventure sports like bungee jumping and skiing. The film industry, on the other hand, boosted by international productions like The Lord of the Rings, has also contributed to the country’s global profile. All in all, New Zealand has participated in just about every avenue of tourism.
Recently, however, New Zealand has seen growth in other areas too, namely in technology and innovation and particularly in software development, biotechnology and renewable energy.
The service sector – including banking, education and healthcare – makes up a significant portion of the economy, reflecting the country’s high standard of living.
While its remote location can pose challenges for trade, New Zealand benefits from strong international partnerships, free trade agreements and a heavy emphasis on sustainability and environmental responsibility, which align with global consumer preferences. Overall, New Zealand’s economy is robust, adaptive, and globally competitive.
So, what does this mean for the startup industry? And, more importantly, how does this influence the country’s ability to produce unicorns?
What Is New Zealand’s Startup Ecosystem Like?
With a strong and growing economy, it’s no wonder that New Zealand’s startup environment is vibrant and globally competitive, driven by government support, innovation and a business-friendly environment.
Key sectors in the country’s startup landscape include agritech, renewable energy, healthcare and general technology. Indeed, plenty of emerging businesses in New Zealand have managed to become globally competitive.
However, that being said, there are still many problems that Kiwi startups face at different stages of growth, a few of which include geographical isolation and limited venture capital. However, the overall feeling is that these challenges are generally outweighed by the country’s supportive ecosystem and opportunities for innovation.
More from Startups
- Meet 10 New Startups Powering New Zealand’s Startup Ecosystem
- Top 10 AI Startups in China in 2025
- What Are Some Of Europe’s Biggest Scale-Ups?
- 8 eSports Companies To Watch
- 10 Emerging Startups in Bali You Should Know About
- Startups To Help With Eczema
- 10 Bold New Startups Driving Innovation Across Spain
- Top 10 New Startups In the US
The Top Unicorns in New Zealand
With New Zealand’s economic success in mind – especially when considering the country’s size and location – it’s no wonder that the country is home to a handful of unicorns. That is, privately owned companies valued at more than $1 billion.
Xero: $17.16 Billion
Founded in 2006, Xero is widely considered one of New Zealand’s most successful businesses, and on top of that, since it’s privately owned, it also counts as a unicorn.
The technology company, most recently valued at $17.16 billion, provides cloud-based accounting software that is intended for use by small and medium-sized enterprises.
As one of the first major players in the industry in New Zealand, Xero dominates the market share in both New Zealand and Australia too, even managing to displace some global legacy providers. The company now also operates in the United Kingdom.
A2 Milk Company: $2.25 Billion
Based in Auckland, New Zealand, A2 Milk is a global leader in the dairy industry known for its innovative and modern approach to milk production. The company was founded in 2000, and the core feature of its product is that its milk contains only the A2 beta-casein protein which is supposed to be easier to digest than regular milk.
The company’s milk is sourced from specifically selected cows, and the product is targeted at people who enjoy the taste of milk but experience fairly mild physical discomfort. A2 Milk produces fresh milk, powdered milk and infant formula, catering to a broad audience.
The company has experienced significant growth and expansion into international markets including the United States, China and Australia.
LanzaTech: $1 Billion
LanzaTech specialises in capturing carbon emissions by means of utilising modern technology. By means of biotech, the company converts industrial emissions (including carbon monoxide and carbon dioxide) into valuable products that can be used for other purposes, like biofuels, various chemicals and other sustainable materials.
The company was founded in 2005 and since then has gained global recognition for its groundbreaking approach to reducing greenhouse gas emissions and promoting a circular economy. Its patented fermentation process uses microbes to recycle carbon, creating sustainable solutions for industries like aviation and chemicals.
