NZ video game industry returns to surging growth with help from subsidy
News from the New Zealand startup ecosystem, straight to your inbox.
Good morning Caffeinators.
Happy hump day and welcome to another stacked news letter to get you set up for the fun half of the week. We’ve got some good news out of the gaming industry to start, with our local sector passing the half billion in revenue mark for the first time.
It feels like the promised green shoots are finally showing, with big sales, dropping interest rates and a cautious return to confidence for a few sectors. Let’s hope the momentum continues.
Finn & the Caffeine team
‘Lifeline’ subsidy helps NZ video game industry return to strong growth: Our surging video game sector faced a potential existential crisis after Australia brought in hefty tax rebates and lured top talent but now our own recently introduced rebate looks like its paying off. Chris Keall at the Herald has a great write up of the latest report from the NZGDA annual survey, showing the local sector has grown by 26% and crossed the half billion in revenue mark for the first time. Read here.
Women Building Wealth October 30: Registration is open now for the Women Building Wealth summit seminars this week, with exceptional speakers from Michela Allocca to Simran Kaur. The summits promises practical insights and a step-by-step guide to mastering personal finance and taxes, to confidently build and grow your wealth without complicated jargon. Register here.
How to raise capital in 2025 deep dive at TechCrunch Disrupt 2024: The TechCrunch Disrupt conference is on this week and for those not lucky enough enough to be attending, Tech Crunch will have you covered online. One stand out will be Footwork, Construct Capital, and Bessemer Venture Partners fronting a panel discussion about why the old rules of capital raise are out the window and what founders and startups need to know heading into 2025. Read more here.
Is it time that ‘doing well’ also means ‘doing good’?
Jody Boshoff reflects on what she learnt from Dan Howell, Founder of Gravity Lab, whose startup donates 100% of its profits to rescuing children from human trafficking. After watching Dan endure a gruelling 100km charity run, Jody shares her own experience of pushing through a 24-hour race for a cause close to her heart, all driven by the belief that business can truly be a force for change.
Two years ago I met Daniel Howell, Founder of Gravity Lab. Dan runs a kick-ass startup - but there’s much more to it. After working with Dan on some PR, I discovered that Gravity Lab gives 100% of its profit to charity (after paying everyone) and counts success in very ‘different’ numbers to EBITDA or CAC. Since 2016, Gravity Lab has rescued over 500 children from human trafficking and prevented countless children from entering a life of sexual slavery through directly funding rescues and prosecution officers. Dan believes ‘doing well’ and ‘doing good’ are often mutually exclusive in business, but shouldn't be…
We got chatting one day and it turned out that we both like running; and we were both headed to Rotorua a few months later for the infamous (and hilly) Blue Lakes 24 Hour Challenge. Dan was running 100km for charity off the back of too little training and too much passion; and I thought he was absolutely (but impressively) crazy. I promised to meet him down there to cheer him on - which I did - while doing a few laps myself.
To cut a very long story short, that race was the most horrific I have ever run. Mud up to our ankles; howling wind; sideways rain and a course so dangerous they closed it when trees began to fall over, narrowly missing us. Dan had raised money for charity based on how many km he was doing; so he did what anyone crazy enough to believe in a cause would do…he headed up the road to where it was a little safer (only marginally) and ran in circles with his brother until he clocked 100km in the very early and dark hours of the morning.
During a loop or three with Dan, I remember him talking about the power of ‘knowing your why’: “Business is about more than making money, Jody. It has the potential to change lives - I mean literally.” Dan told me that to him, ‘doing good’ was the fuel behind ‘doing well’. “At our team meetings - we make it clear that doing your job well is the best way of making a difference in the world. We update every staff member monthly around how many children we’ve been able to rescue using the profit from their role. One member of staff has been with us for six years and as a result, he’s helped rescue 140 children. Our productivity and performance is supercharged by purpose.”
Those words stuck with me; and they wouldn’t leave me alone…so much so that come Christmas, I’d selected a cause to donate to in lieu of yet more plastic waste in the form of knicknacks. Even more significantly (or stupidly?) - 365 days later, three weeks ago I found myself at the start line of that same race running 101.3km (yes, I was counting) over a 24 hour period for a cause close to my own heart - an orphanage in South Africa that takes care of abandoned babies.
I can almost guarantee that without that ‘why’ - I would have given up; but the run was about more than just me; which made it easier not to throw in the towel. Launch PR wasn’t giving up on ‘doing good’; so I wasn’t giving up either.
As far as races go, it was pretty brutal. Elevation and more elevation. It was so cold that two snow jackets and a beanie couldn't prevent me from shivering when I stopped to refuel. I threw up (a lot) around the final laps and then tried to throw up (but nothing was left) on the last lap...but I wasn't calling a medic! Again, Dan’s words on my ‘Give a little’ page rang in my head: “Remember two things: 1 - All you need to do is not stop 2 - It's worth it to help those in need! 3. Bonus third thing - pizzzzzaaaa is amazing!” I was finishing on my feet because I wanted to raise enough money (with a donation added from my agency) to cover the cost of caring for 72 babies - three an hour.
Dan doesn’t know about this piece (he’s actually away on an undercover op), but he inspired me to ask myself: What more can I do? As a Founder, every single one of us is in a position to ask this same question. If we all do what we can, with what we have, where we are - the world will change.
I’m not saying you should run 100km, but…find a cause worth ‘doing good’ for and then make a plan to take action. I promise you - it will feel AMAZING!
Has Launch PR eradicated the problem of babies being thrown away? No. But we have spread some LIGHT to combat the darkness.
Think about that again: “Our productivity and performance is supercharged by purpose.” Together, I’m convinced that we can turn ‘doing good’ into the new ‘doing well’!
(To all those Founders I run with, please, don’t invite me for any three digit runs for a while yet!)
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Mastering Market Positioning: Key Strategies to Help Your Startup Stand Out
In this week’s Joyous Podcast, Mike Carden interviews renowned B2B marketing expert and author, April Dunford. Known for her strategic insights on market positioning, April discusses the difference between positioning and messaging, how to use storytelling effectively in sales, and the importance of engaging internal teams in the process. She also highlights the growing impact of trends like AI on positioning strategies. If you want to sharpen your startup's competitive edge, this episode is a must-listen.
Man ‘Unmasked’ as bitcoin creator Satoshi Nakamoto now in hiding: One of the most enduring and fascinating mysterious in the business or tech worlds is the real identity of Bitcoin creator ‘Satoshi Nakamoto’. A recent HBO documentary tried to answer this question conclusively and while the jury is out on whether they managed it, the man they name as Satoshi is now in hiding. As this excellent Wired piece notes, he wonders exactly how he can deny being Satoshi when everyone’s response will be: “Well, that’s exactly what Satoshi would say.” Read more
That’s it for today, thanks for reading. Want to get in touch with a news tip, bit of feedback or just to chat? Email hello@caffeinedaily.co. Look after yourselves and each other and we’ll see you tomorrow.