14 Nov 2017  -  According to Forbes, more than $2.3 billion has been raised in token sales, aka “ICO’s” so far in 2017. As an entrepreneur who has raised more than $300 million of venture capital equity financing in my career, and whose company is holding an ICO in just a few days, I have mixed thoughts about the current ICO bubble. Like many, I’ve been enthralled by the technical elegance and enormous potential of blockchain technologies. And, one cannot help but be fascinated by the amount of capital flowing into cryptocurrencies and ICO’s.

Like many, I’ve also been repulsed by the ICO scams and hype marketing, turned off by the pay-for-play ICO cottage industry, and frightened by the speculative dynamics of cryptocurrencies and token markets.

In a previous post I discussed some of the cringiest moments we’ve encountered during the ICO process.

In this post I present some of my thoughts on the ICO Bubble, implications of the increased ICO volume and noise, and my suggestions for the community to adopt requirements for better ICO’s.

This is a work in progress, intended to spur conversation, and I encourage and welcome everyone’s feedback.

The ICO Bubble in ContextFrom a macro perspective, bubbles serve as an acceleration purpose in technology cycles. The capital markets are currently sizing up cryptocurrencies and blockchain technologies much like they did for the emerging Internet companies in the late 1990’s. Back then, hundreds of dot-com companies raised globs of money pre-revenue on big ideas alone and went public long before they should have. Most of those companies didn’t survive, while a handful of the dot-com bubble babies like Amazon and Google went on to dominate. However, any way you slice it, the capital markets’ appetite for speculating on the future value of Internet technologies fueled a massive wave of innovation that fundamentally improved and connected the world. And, many of the ideas that initially failed were recast and reborn years later as successful ventures, once ideas caught up with technical realities and consumer adoption.

Bubbles reflect investor excitement and optimism for game-changing ideas and outsized returns. Bubbles also educate markets. Many consumers first got intrigued by the Internet by following booming Internet stocks, just as many consumers today are first becoming familiar with blockchain and crypto by learning of booming Bitcoin prices.

Blockchain today is like 1993 internet — we’re still at the early stage of building protocols and middleware — albeit with 1999 bubble hype. The current cycle is more compressed than the 1993–2000 dot-com cycle because blockchain technology is based on immediately recognizable economic value, whereas Internet companies were valued based on potential future profits and stock prices. The dot-com bubble was fueled by investor enthusiasm to get into those zero-to-one projects, much as the crytpo bubble is today.

Continue here to read the full article by Board Member OpenST Foundation. Founder and CEO of Simple Token. Founder & CEO of Pepo.Board Member OpenST Foundation. Founder and CEO of Simple Token. Founder & CEO of Pepo.  ||  November 14,  2017   |||

13 Nov 2017  -  Steel prices have risen 14 per cent writes Anna Gibson for the NZHerald earlier today.  Rising international prices have prompted Pacific Steel to increase costs to its New Zealand customers by 14 per cent.  Stan Clark, Pacific Steel's sales and marketing manager, wrote to customers, telling them of the price hike.

"As an outcome of international steel price movements since the middle of the year, traded steel prices have increased here in New Zealand throughout that period. As a consequence, Pacific Steel has reviewed its prices and will be reflecting this market movement by increasing its prices by approximately 14 per cent commencing for orders placed for manufacture from the November production campaign," Clark wrote

Continue here to the full article published in the NZHerald  ||  November 13,  2017   |||

13 Nov 2017  -  The 2017 ExportNZ DHL Export Barometer released today shows Kiwi exporters are feeling confident and expecting orders to increase over the next 12 months, Business New Zealand says.

Optimism is very positive with 71% of New Zealand exporters expecting international orders to increase - this is a jump from 63% in 2016.

The research shows that overall 2017 has been a good year, with just over half (55%) of exporters achieving an increase in international orders.

While the survey was carried out prior to the election, ongoing political support for the export environment will be crucial to ensure Kiwi businesses achieve the perceived upcoming boost to orders.

Exporters responding to the survey cited several key ways in which assistance from the New Zealand Government could help their business. Research and development assistance came out top at 26%, closely followed by help attending trade shows with other NZ companies, and more free trade agreements (both 25%).

ExportNZ executive director Catherine Beard said: "The results show that trading with the USA has increased significantly over the past year, with more than half of Kiwi exporters sending orders to the USA and over half (55%) seeing the Trump administration as having a neutral impact on exports, while 41% thought it had a negative impact on exports,” Beard added.

"The fact that R&D has been flagged up as a key area for assistance is significant as more than half (52%) of exporters developed new products and services in a bid to boost export orders. Innovation can be a powerful tool for overcoming the ‘strength of competition in overseas markets’, which is the number one concern among exporters (42%).

Online commerce holds steady The 2017 ExportNZ DHL Export Barometer shows that while some exporters have embraced online commerce, not much has changed in the last two years.

One-fifth of exporters generate more than half of their international orders online, including 6% who generate all export orders this way. There is still plenty of room for growth as 26% said that none of their export orders are generated online.

DHL Express NZ country manager Mark Foy said: "Online commerce is a massive growth area for Kiwi exporters with huge potential to reach international audiences. Currently most businesses, 80%, are only spending one-fifth of their marketing budget online.

"Social media holds much untapped potential to reach overseas consumers looking for innovative and unique goods. However, 68% of companies say they do not use social media to generate orders or enquiries."

While Australia remains by far our number one trading partner (72%), we are shifting towards the ever-growing China (30%) and away from our traditional chief trading partner, the UK (26%), post-Brexit.

A joint initiative between ExportNZ and DHL, a total of 379 New Zealand exporters were surveyed for the ExportNZ DHL Export Barometer 2017.

13 Nov 2017  -  Fisher and Paykel Healthcare Corp has won a patent case against ResMed in the UK in the ongoing intellectual property dispute for its face and nasal masks across various jurisdictions.

The High Court of Justice, Chancery Division, Patents Court ruled a disputed ResMed patent was invalid, with the New Zealand manufacturer entitled to recover its legal costs with the amount yet to be determined by the court, the company said in a statement.

“While today’s ruling is just one more step on the journey, it reinforces our confidence in our position and we are satisfied with progress so far,” chief executive Lewis Gradon said.

In 2016, F&P Healthcare claimed that three of ResMed's European patents were invalid in the UK and should be revoked. ResMed counterclaimed for infringement but did eventually revoke two of the patents, leaving only one before the court.

ResMed argued that patent EP 2 708 258 B1 was infringed by two of F&P Healthcare’s masks used for obstructive sleep apnea therapy, the Eson and Simplus masks. Had the patent been valid it would have been infringed. However, "the court found that the patent was invalid in its entirety." F&P Healthcare said.

Subject to any appeal, this European patent will be revoked in the UK and "this result confirms that UK patients can continue to purchase and enjoy the benefits of our high-performance masks," the New Zealand company said.

The skirmish is the latest in a far-ranging dispute between the two firms, with legal action spanning from North America to Europe to New Zealand.

In October F&P Healthcare said that the Regional Court in Munich had ruled ResMed did not infringe its patents on a German utility model patent. A further case is before the same court regarding another patent with a ruling expected in 2018, pending proceedings filed by F&P Healthcare in the European Patent Office.

In its annual report, F&P Healthcare said it had absorbed pre-tax patent litigation costs of $20.7 million during the year to March 31 and it expects to incur litigation-related expenses at a similar run-rate during the 2018 financial year.

F&P Healthcare shares slipped 0.1 percent to $13.20 but have gained 55 percent so far this year.

| Published on  Sharechat  ||  November 13,  2017   |||

13 Nov 2017  -  Contact Energy is getting a lot of attention for its pioneering green borrowing programme, certified by Climate Bonds Initiatives (CBI) and launched in mid-August. There are expectations this will lead to further similar issues in New Zealand as the appetite for socially responsible investing and meaningful action on climate change grows.  Green bonds are created to fund projects or assets that have positive environmental and/or climate benefits. Most green bonds that are issued worldwide are green “use of proceeds” or asset-linked bonds. This means investors that buy these green bonds can be confident their investment is linked to assets that will benefit the environment.

James Kilty, Contact’s Chief Generation and Development Officer says the certification reflects the low carbon nature of the company’s generation assets. “Over 80% of Contact’s electricity is produced from renewable sources and for us a responsible, innovative and sustainable approach to managing these precious resources is key.”

In the case of Contact Energy, its $1.8 billion programme allows debt investors and lenders to access a broad range of certified green debt instruments, including committed bank facilities, commercial paper and retail bonds issued by the company. The programme has been certified by the Climate Bonds Initiative (CBI), one of its largest certifications to date.

Louise Tong, Head of Capital Markets and Tax at Contact, said all future funds raised by Contact are intended to be included in the Green Borrowing Programme. In addition, there is potential for the company’s existing hydropower generation assets in Clyde and Roxburgh to be included in the programme in future.

“We’re part of a Technical Working Group associated with CBI that’s trying to determine what appropriate hydropower criteria should be. Once the criteria are determined, we’ll bring our hydropower assets into the programme. This would allow Contact to include the new debt issuance planned for next year in our Green Borrowing Programme.”

“As well as shining a light on Contact’s broader sustainability initiatives, the Green Borrowing Programme is an opportunity to attract a broader pool of “green” investors who appreciate the importance of low carbon energy in addressing the challenges presented by climate change” she said.

Contact is actively focusing on the role it can play to help New Zealand transition to a low carbon economy. James Kilty notes, “There’s also a great opportunity to do more to tackle climate change in NZ, particularly in the transport sector and energy-intensive manufacturing businesses where’s there’s an opportunity to convert to cleaner electricity, backed by renewable generation, and we’re keen to work with industry and customers to help bring about this change.”

Katharine Tapley, Head of Sustainable Finance at ANZ Bank who assisted Contact to establish its Green Borrowing Programme, said it has been a catalyst for sparking significant interest from other New Zealand corporates.

“Following the Contact programme being launched, we’ve had a lot of enquiries about the potential for other green bonds to be issued into the New Zealand market,” she said.

She noted that, while the green debt market in New Zealand is lagging Australia and Asia, there is opportunity given the focus on renewable energy, energy efficiency and sustainability more broadly.

Internationally, there has been enormous growth by investors and issuers in green bonds over the past year. At the end of the first quarter of 2017, green bonds issuance stood at $US21.76 billion, up nearly 42 percent from the same period last year. The Organization for Economic Co-operation and Development (OECD) estimates that the green bond market could increase by $US4.7 - $US5.6 trillion by 2035.

The benefits to issuing green bonds include:

1. Increased transparency about carbon reduction.

For Contact this means having assets that meet scientifically-based emissions criteria. Contact has committed to regular disclosure and reporting in relation to those criteria.

2. Funding for sustainability initiatives

Green bonds can provide capital for sustainability-related projects. In the case of Contact, this includes refinancing exiting assets, but a number of other New Zealand companies are considering green bonds to finance projects ranging from water efficiency initiatives through to green-rated buildings.

3. Demand from private investors

For investors, green bonds allow them to invest in environmentally-friendly products and services – this segment of investment funds is growing significantly, reflecting the increased focus on socially responsible investment.

4. Enhances company reputation

As Contact Energy is experiencing, when companies introduce green borrowing, they get a lot of attention. This allows companies to share their stories about the other reputational and financial benefits of sustainable business.

| A Contact Energy release  ||  November 13,  2017   |||

08 Nov 2017  -  New Zealand’s Fonterra Co-operative Group has deepened a long-standing commercial agreement with Lithuania’s biggest dairy producer, AB Rokiskio Suris, taking a 10 percent shareholding in the company. Ranked by Rabobank as the world’s sixth largest dairy company by turnover in 2017, Fonterra has invested €7.1 million (US$8.2 million) in Rokiskio, securing a supply line of high-value whey ingredients while opening up product options across Europe and the Middle East.

It also creates the opportunity to source additional dairy products from the Baltic milk pool to serve the increasing demand from nearby developing markets.

Fonterra Chairman John Wilson says the investment is closely aligned to Fonterra’s strategy to grow its global sources of milk in strategic locations such as Europe, enabling the co-operative to satisfy customer demand in market closer to those sources.

“Our New Zealand farmers will always remain our primary source of milk, but increasingly we are supporting our growth and their returns through strategic partnerships in Europe, Latin America, Australia and China. These partnerships enable us to produce products in demand closer to the market while providing more opportunity for milk and milk products we make elsewhere,” he said.

Fonterra CEO Theo Spierings says the development built on Fonterra’s current long-term supply relationship with Rokiskio and would benefit both companies.

“Our ability to access high-value whey protein ingredients is increasingly important as demand grows, especially in Eastern and Western European, Middle Eastern and North African markets.”

“Rokiskio is also a highly-respected cheese producer and this also opens up further opportunities for us to satisfy customer demand in these markets. This is another step in our strategy to develop a sustainable European-sourcing network, providing a reliable and efficient chain of supply that will complement our New Zealand-sourced ingredients.”Click to Enlarge

Rokiskio Suris Chairman, Dalius Trumpa says Rokiskio’s focus on product quality and safety, as well as its environmental performance, were important strengths the company brought to the relationship with Fonterra. Contract manufacturing for Fonterra had played a role in the company’s capacity expansions and upgrades in 2014 and 2016 and he is optimistic about future growth opportunities.

"We have worked closely as commercial partners for five years and over this time we have built a strong relationship. Fonterra’s investment in Rokiskio Suris lifts our company to a new global level, opening up export opportunities which will generate more value from our local milk pool,” says Trumpa.

“By welcoming Fonterra as a shareholder, future growth can be accelerated by entering new markets and investing in new technologies.”

Rokiskio has three factories in Lithuania and makes cheese, butter, whey protein and milk powders. It is one of the largest and most well-known cheese producers in Central and Eastern Europe, producing more than 30 thousand tons of cheese each year.

The company exports to both Eastern and Western markets as well as producing a wide range of fresh dairy products for the Baltic region.

In September, Fonterra confirmed that it lodged a bid for Australia’s largest dairy processor, Murray Goulburn, and also released its full-year results. A number of groups were believed to have made offers for the struggling company, but Fonterra was the first to confirm its interest on the back of a successful business year.

Fonterra’s full-year results were described as successful. The company announced that it had seen its net profit fall by 11 percent in the year to July 31. However, revenue rose to NZ$19.2 billion (US$15.52 billion), up 12 percent from NZ$17.2 billion (US$12.3 billion) the year before.

The Asian protein ingredients market forecast to grow by 11.5 percent from 2016 to 2020, according to Fonterra NZMP Ingredients General Manager for South & East Asia, Hamish Gowans.

You can listen to a podcast interview with Gowans here.

|  A FoodIngredients release  ||  November 8,  2017   |||

7 Nov 2017  -  MyBitcoinSaver, the New Zealand micro-savings platform for Bitcoin, has today announced the closing of $400,000 in seed round funding.  The platform, launched by Aucklander Sam Blackmore in November last year, makes it easy for New Zealanders to invest small ongoing amounts in the world’s most popular cryptocurrency, which has grown in value by almost ten times since January.  The startup plans to use the funding to continue driving growth in New Zealand while also expanding into the UK market.

Investors in the seed round included Brian Cartmell, investor in the billion-dollar US Bitcoin exchange Coinbase; David Smith, director of Caci Clinic; and Techemy: the parent company of Bitcoin analysis and news company Brave New Coin.

"Bitcoin is one of the most exciting things to happen to the financial world in decades," Blackmore says.

"But until recently, the cryptocurrency world has been an exclusive little club of early adopters. Unless you were very smart or willing to spend hours hunting for them, buying Bitcoins in New Zealand hasn’t been easy. We want to help all New Zealanders tap into the exciting opportunities Bitcoin presents."

Once registering to MyBitcoinSaver, users can set up automatic bank payments of between $10 and $200 on a weekly, fortnightly, or monthly basis.

The startup then bulk buys Bitcoin from an overseas exchange and distributes it to users’ wallets that same week.

MyBitcoinSaver has grown by more than 4000% in its first year with 1460 New Zealanders signed up to the service so far.

Blackmore has been investing in Bitcoin since 2013 and initially built the early prototype of MyBitcoinSaver - with a few lines of code - for himself, friends and family.

With a limit of $200 per week per user, MyBitcoinSaver aims to be a responsible and safe platform for buying Bitcoin, encouraging its users to use a Dollar Cost Average savings approach.

"Public interest in Bitcoin has exploded and people see buying it as a sensible addition to their savings plan," Blackmore says.

"We take the stress and complication out of buying Bitcoin and help anyone - from millennials to grandparents - take part in this revolutionary financial technology."

MyBitcoinSaver will be soft-launching in the UK within the next two months with plans to roll out the service publicly after three months in Beta testing.

The startup decided to extend its operations there because London is the financial capital of the world and there’s an appetite for a safe and reliable way to buy Bitcoin with Pounds Sterling.

The $400,000 seed money will be used to hire development staff and fund marketing here and in the UK.

| A BitcoinSaver release  ||  November 7,  2017   |||

7 Nov  -  The latest New Zealand Diversity Survey revealed that 61 per cent of organisations are perceived to value the most senior members of their staff, and a third offer flexible or reduced hours and the opportunity to be a mentor to their aging workers.

The survey is conducted twice a year by Diversity Works New Zealand and Chief Executive Bev Cassidy-Mackenzie says it’s also encouraging to see that the number of organisations with no specific strategy for engaging with aging workers dropped from more than 70 per cent a year ago to just 32 per cent last month.

Government figures predict that by 2020, a quarter of the New Zealand workforce will be aged 55 or older, and these wisdom workers can offer a solution to the skills and labour shortage many industry sectors are facing. Businesses need to capitalise on the experience and loyalty they bring to the workforce and the New Zealand economy,” she says.

However, only a quarter of organisations surveyed have a formal policy or initiative in place to deal with the issue of an aging workforce, something Cassidy-Mackenzie expects to change within the next 12 months.

“We saw some great initiatives to maximise the benefits of older workers at the 2017 Diversity Awards NZ™ – the supreme winner, tourism operator Real Journeys, has introduced a scheme that uses its experienced skippers nearing retirement to train younger workers, creating new career opportunities for staff at both ends of the age spectrum.”

Michael Barnett, a director of the New Zealand Chambers of Commerce, agrees.

“Hoping that an ageing workforce will be someone else’s problem is not a strategy. The survey clearly shows that older workers are valued and depended on and that we should have a plan to retain and re-educate if we are to keep them as a resource,” he says.

Smaller businesses might consider a strategy that engages older workers who are loyal and will bring knowledge and stability to their work places, he says.

The NZ Diversity Survey, which was initiated in 2013 to create a better understanding of the key diversity challenges facing New Zealand organisations, is carried out twice a year by Diversity Works New Zealand, in partnership with the New Zealand Chambers of Commerce and supported by Massey University.

| A Diversity New Zealand release  ||  November 7,  2017   |||

6 Nov  -  Living Wage Movement Aotearoa New Zealand welcomes the first ever corporate business as an accredited Living Wage Employer.  New Zealand's largest distributor of electricity and gas across the Auckland region, Vector Limited, joins nearly 90 other accredited businesses committed to paying no less than $20.20 to all workers, including contracted cleaners.

The announcement was made at Auckland’s Kai Pasifika restaurant, another Living Wage Employer at midday.

“This is momentous for the Movement and for all New Zealand workers,” says Living Wage Convenor Annie Newman.

“We congratulate Vector for its courage and commitment to a new standard for fair wages, where workers earn enough to live a decent life in NZ,” Annie says.

“The Movement has contacted many of the top NZ firms to invite them to be Living Wage and Vector is the first to embrace the concept. We hope it is just the beginning.”

Vector’s Group Chief Executive Simon Mackenzie says that the business supports a Living Wage because it is the right thing to do.

“Fairness and equity has been a big part of our approach to remuneration for a number of years, and we’re pleased to have this formally recognised through the Living Wage accreditation.

“Vector’s support of a Living Wage is also consistent with our commitment to the United Nations Sustainable Development Goals and in particular the goal to reduce inequalities.

“As a large Kiwi employer with staff up and down the country, paying a Living Wage is one way we can help address inequality of living standards.

“In addition to our own people, we’re now working with our partners and suppliers to try and ensure support for a living wage across our supply chain.”

The inaugural Living Wage Week begins today (Monday) with events around the country bringing communities together to grow the movement for decent wages and celebrate businesses that are taking this fair wage standard seriously.

| A Living Wage Aotearoa release  ||  November 6,  2017   |||

6 Nov 2017  - Top New Zealand CEOs are leading the way in progressing to flexible workplaces and providing a roadmap for other business leaders to follow, thanks to the Champions for Change business group of 56 New Zealand CEOs and Chairs.  Champions for Change recently launched a Flexible Working Toolkit that collates CEOs’ insights in developing flexible workplaces to attract and retain top talent,increase productivity, and foster an agile response to changing market needs. The Flexible Working Toolkit provides templates, case studies, and specific suggestions of how flexibility can work for organisations.

With over half of the New Zealand workforce either currently working flexibly or wanting to in the future, a shift in leadership mindset and a plan to transition teams and employees to the “new normal” is critical to managing businesses of the future.

“We are seeing a fundamental transformation in the way we work,” says Alison Andrew, CEO of Transpower and a Champion for Change. “There are some very real challenges to overcome as we adapt from corporate traditions of set hours and locations to flexible hours and the ability to work remotely, whether at home or while travelling.”

New and constantly evolving technology, the 24 hours “open” global village, changing life styles, increased ethnic diversity, talent shortages and growth in female participation in the workforce are all trends driving the need for flexibility in the workforce, said Mark Verbiest, Chair of Spark and a Champion for Change.

“New Zealanders are famous for their ability to adapt and evolve, and having a flexible approach and mindset enables problems to be solved in new ways,” says Mark Verbiest.

Representing more than 100,000 direct employees in New Zealand across 44 leading organisations, Champions for Change is a group of 56 CEOs and Chairs from across the public and private sector who are committed to increasing diversity in the workplace.

The Champions for Change group reinforced that workforce flexibility is a much broader concept than “part time hours for new mums”; it is just as important for men as women. It encompasses caring for family members, embracing cultural commitments, and having the ability to participate in lifestyle activities such as sport, study and travel.

Under existing workplace law, employees have the right to request flexible work arrangements and employers have an obligation to consider the request.

“With the increasing pace of change including legislation that ratifies the importance of flexible work, an agile approach is essential,” says Alison Andrew. “We see flexibility as the biggest enabler for creating diverse and inclusive workplaces – and these businesses will be the most resilient and successful in the future.”

“When managed well, we’ve found that a flexible workplace will reduce staff turnover, lower absenteeism and increase how much satisfaction people get from their work. Plus, giving people flexibility has a real impact on morale,” said Mark Verbiest.

The Flexible Working Toolkit includes videos, info-graphics, fact sheets, templates and links to additional resources for company leaders. It is free to anyone looking for practical advice on how to develop a more flexible and inclusive workforce: http://flexibility.championsforchange.nz

| A Champion for Change release  ||  November 6,  2017    |||