Feeds

Xero gets $NZ60m to account for

Kiwi accounting software house expands

  • alert
  • submit to reddit

Top 5 reasons to deploy VMware with Tegile

Kiwi tech entrepreneur Rod Drury’s accounting software company Xero has attracted a further $NZ60m from existing backers Matrix Capital and Peter Thiel’s Valar Ventures.

The new cash is the third round of investment from the SaaS accounting outfit's US supporters and will go towards further expanding service, support and global operations in Australia, the UK and the US. Xero launched a San Francisco presence this year.

Drury said on his blog that the funding was a “huge endorsement” for the small business focussed software house. “We’re just at the beginning of the business SaaS market and we have the resources to keep our foot on the throttle. We look forward to winning market share from the big incumbents by introducing small businesses around the world to beautiful accounting software.”

As part of the transaction, the company’s three largest shareholders sold down their stakes with MYOB founder Craig Winkler now holding 15.7 per cent and pocketing $NZ15m and Xero co-founders and Drury selling down his stake from 21.0 per cent to 18.5 per cent for $NZ5m.

“Xero differentiates itself, not only as a model for accountancy, but also as a harbinger for where all software companies will have to go if they want to remain relevant. The future is in the cloud, Xero is already there, and we want to be there, ” said David E. Goel, Managing Member of Matrix Capital Management.

In addition to trading on the NZ stock exchange, Xero listed on the ASX in November. The company is investing in further application and operating infrastructure and said it would have 60 staff in Australia by Christmas. ®

Secure remote control for conventional and virtual desktops

More from The Register

next story
The 'fun-nification' of computer education – good idea?
Compulsory code schools, luvvies love it, but what about Maths and Physics?
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Ex-US Navy fighter pilot MIT prof: Drones beat humans - I should know
'Missy' Cummings on UAVs, smartcars and dying from boredom
Lords take revenge on REVENGE PORN publishers
Jilted Johns and Jennies with busy fingers face two years inside
Sysadmin with EBOLA? Gartner's issued advice to debug your biz
Start hoarding cleaning supplies, analyst firm says, and assume your team will scatter
Doctor Who's Flatline: Cool monsters, yes, but utterly limp subplots
We know what the Doctor does, stop going on about it already
YARR! Pirates walk the plank: DMCA magnets sink in Google results
Spaffing copyrighted stuff over the web? No search ranking for you
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.