Exclusive: Phase One Ventures share tips on Kiwi startups navigating the US market

Mahesh Muralidhar's journey into tech was born out of a desire to create value.

"The global financial crisis severed my vocational connection to society," he explained, during a recent interview.

Watching The Social Network in 2013 cemented his ambition to "dive into startups."

"I thought I'd give it a crack," he recalled.

Today, Muralidhar is best known as the founder of Phase One Ventures, an early-stage venture firm that has helped nurture some of New Zealand's most promising startups.

With a unique blend of experience as a founder, investor, and mentor, Muralidhar credits his ability to connect with entrepreneurs to his firsthand understanding of their struggles. "I know what it feels like to dream a crazy dream," he said. "I know what it feels like to take the first step and not have a clue where you're going."

This empathy has been central to Phase One's approach. Unlike traditional firms, Phase One initially offered free, unqualified support to founders.

"We didn't charge anything," Muralidhar said. "It was this really unusual situation where someone who'd seen a lot in startup land was giving away free, unrequited levels of support."

The recent growth of New Zealand startups has also been fuelled by increased international exposure. Muralidhar recently returned from the United States, where he spent three weeks embedded with Kiwi founders in a grassroots setting.

"I was sleeping in the office until 1am, 3am," he said, revelling in the hard yards that epitomise startup life. "It was a privilege to go back to grassroots and just do the work."

The US market, with its palpable demand and rapid pace, left a deep impression. "Walking around New York during supposedly recessionary times, I could feel the consumption to my neck," he said. "The US is an incredible space to build something, deliver value, and create opportunities for yourself."

Muralidhar also attended the prestigious All-In Summit, hearing from tech luminaries such as Elon Musk and Travis Kalanick. The experience underscored how accessible success can be with clarity and focus. "Suddenly, it seems so much more achievable," he added.

Despite these advantages, he believes Kiwi founders possess an edge over their American counterparts. "American founders often have a fallback option," he explained. "Kiwi founders, on the other hand, play a proper game. They have one shot and know they have to make it work." This hunger and humility often translate into superior results.

However, Muralidhar is candid about areas where New Zealand and Australian startups fall short. "We don't dream big enough," he said. "We haven't had enough home-run successes to shift societal trust towards global tech startups. We trust farming, property, and rugby, but we don't yet trust tech."

Drawing on his experience with Canva, where he was employee number 25, he highlighted the transformative impact of scale.

"When I joined, Canva was worth $20 million. Today, it's closing in on $40 billion," he said. Success stories like this, he argued, could inspire a cultural shift in New Zealand.

Muralidhar also sees an untapped opportunity in connecting New Zealand's diaspora with the local ecosystem. "Twenty percent of New Zealand's population lives overseas," he noted.

"These are people hitting massive home runs, but we don't hear about them or engage with them."

Encouraging reciprocal communication between Kiwis at home and abroad could unlock immense value.

"Many want to give back but don't know how to engage," he said.

Initiatives like David Booth's diaspora.co.nz are steps in the right direction.

On the topic of tech visas and remote work, Muralidhar emphasised the importance of fostering global connections. "We need stronger visa ties to the US," he said, citing Australia's example. "We should also invite more designers, engineers, and product people from around the world to New Zealand."

As for US entrepreneurs, Muralidhar believes they can learn from New Zealand's grounded approach.

"The US startup ecosystem can get a bit silly," he said. "There's so much access to capital that it's easy to get distracted. At the end of the day, the market only cares about whether you deliver value."

Looking ahead, he envisions greater collaboration between Kiwi and US startups. "The biggest opportunity lies in Kiwi entrepreneurs targeting the US market from day one," he said. He also highlighted the potential of a mentorship chain, where successful Kiwi founders in the US support the next wave of startups.

For Muralidhar, the mission is deeply personal. "My only goal in life is to make New Zealand a happier place," he said. By leveraging his global experience and network, he aims to grow New Zealand's GDP per capita by 40 to 50 percent.

"We have to grow the economy," he said. "If we solve that, everything else becomes easier."

Ending on an optimistic note, Muralidhar reiterated his commitment to New Zealand's future.

"I'm excited to use everything I've got to make sure we grow our economy," he said. "That way, we'll have the money for the hospitals and schools we think we deserve."