For tech exporters to the US, many things change, a few stay the same

Saturday, 2 May 2026

Mike “MOD” O'Donnell is a US-based commentator with extensive experience as a director and adviser to New Zealand businesses. He is currently NZTE’s regional trade director for North America. This column represents his personal opinions.

OPINION: Back in 2014 I was fresh out of a decade as chief operating officer at Trade Me. We’d grown from six people to 300 and were trading on the NZX with a $2 billion valuation. I wanted to try something new.

I picked up a gig selling New Zealand intellectual property to foreign governments and was starting to move into board work for tech companies.

More to the point, all the kids who used to work for me were starting their own companies and, for reasons that probably said more about them than me, wanted a “greybeard” on their boards. That saw me join the boards of companies like Raygun, Serato, Timely and PaySauce, and invest in a few more.

It also meant working with more New Zealand firms looking to North America as the next step.

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That ambition hasn’t changed. Kiwi tech companies are still heading north to find customers, scale and credibility in the biggest market in the world.

Having been immersed back in the North American market for the past eight months, it’s clear the terrain has shifted — and the level of volatility has stepped up a notch between 2014 and 2026.

In some ways it’s easier. The tools are better, the path is clearer and others have gone before. But in other ways it’s less forgiving. The market assumes more, forgets faster and asks better questions.

Start with SaaS.

In 2014, being SaaS was still a point of difference. You were modern, cloud-based, slightly ahead of the pack. Buyers were still deciding whether they were comfortable with the model.

In 2026, nobody thanks you for it. Cloud based SaaS is table stakes. The conversation has moved to security, integration, reliability and outcomes.

You’re also starting to hear talk of the AI-induced “death of SaaS”. That would have been inconceivable in 2014. Death is overstating it, but it does point to a shift. AI is turning some standalone products into features and lowering the cost of building software. If you’re selling SaaS in 2026, you need a clear answer to how AI changes your relevance — and what, exactly, customers are paying for.

Pricing is where this shows up first. Per-seat models are under pressure because AI reduces the number of seats needed. Usage-based and outcome-based pricing is rising because AI workloads are variable. Companies arriving with 2019-era pricing are walking into a conversation they’re not prepared for — and it’s often the first signal to a US buyer that the thinking is out of date.

Growth has shifted too.

In 2014, you could largely buy it. Target customers with online ads, track what worked, optimise, repeat. If you had budget, you could usually make the numbers move.

Today the maths still works, but the signals are weaker. Privacy changes and platform shifts have made attribution fuzzier and harder to trust. Paid channels still matter, but they’re no longer the whole strategy.

Growth now comes from product experience, partnerships, content and reputation. Brand matters again. Trust does work that tracking used to do.

The role of sales has changed alongside it.

In 2014, sales explained the product. Long demos and paid proof-of-concepts were normal. “Talk to sales” wasn’t friction, it was expected.

Now buyers want to try things themselves, quickly and quietly. Trials, freemium models and fast onboarding are baseline expectations. Sales still matters, but later in the conversion funnel to expand or de-risk rather than persuade.

The product opens the door.

Security has moved forward as well.

In 2014, it helped close deals. Now it determines whether you get in the room at all. Procurement, legal and infosec show up early and want evidence, not assurances. If you can’t answer the questions, you don’t get to keep talking.

And then there’s generative AI.

In 2014, it was interesting but optional. In 2026, not having a view looks naïve. Buyers expect to know how it improves your product and how you manage the risks and protect customer data. Investors expect leverage, not buzzwords. Internally, it’s already reshaping how companies operate.

You don’t need to overclaim. But you do need an answer.

Put all of this together and a deeper shift emerges.

The North American market hasn’t just become more competitive. It has become less tolerant of immaturity.

In 2014, you could explain your way into credibility and leverage a cute accent. There was room to refine the pitch and learn as you went.

Now the judgement comes early. Your product, your positioning, your security posture, your clarity - they’re assessed quickly, often without you in the room. By the time you get to speak, the decision is already leaning one way or the other. You don’t get long to catch up.

There’s also been a geographic shift hiding in plain sight.

Back in 2014, most Kiwi tech companies defaulted to the West Coast — San Francisco, Los Angeles, Seattle or Vancouver.

Today, more are landing in Denver. The reasons are pragmatic: lower operating costs, relatively light state taxes, strong connectivity, deep talent across multiple sectors, and a support ecosystem that actively helps international companies get established. It’s not trying to be the centre of the tech world, which is precisely why it works.

And as a bonus, you can start the day with a proper flat white and end it with a pretty decent craft beer — both surprisingly hard to guarantee elsewhere.

One thing hasn’t changed. Being a New Zealand company is still an advantage.

Where it once made you interesting, it now comes with a reputation. Companies like Xero, Rocket Lab, Auror and ikeGPS have helped build a perception that Kiwi firms are highly credible, pragmatic and here to stay.

That gets you a meeting. But it doesn’t get you a second one.

Growing a New Zealand tech company in North America isn’t harder than it was in 2014.

But it is less forgiving.

The market assumes competence, expects proof, and moves on quickly. It no longer teaches you how to win. It assumes you already know.

If you arrive ready and have competitive advantage and strong backing, the opportunity is still enormous.

If you don’t, you don’t get much time to explain why.