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. ®

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
BIG FAT Lies: Porky Pies about obesity
What really shortens lives? Reading this sort of crap in the papers
Be real, Apple: In-app goodie grab games AREN'T FREE – EU
Cupertino stands down after Euro legal threats
Assange™ slumps back on Ecuador's sofa after detention appeal binned
Swedish court rules there's 'great risk' WikiLeaker will dodge prosecution
prev story

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
How to determine if cloud backup is right for your servers
Two key factors, technical feasibility and TCO economics, that backup and IT operations managers should consider when assessing cloud backup.
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.
The Heartbleed Bug: how to protect your business with Symantec
What happens when the next Heartbleed (or worse) comes along, and what can you do to weather another chapter in an all-too-familiar string of debilitating attacks?