Feeds

Xero gets $NZ60m to account for

Kiwi accounting software house expands

  • alert
  • submit to reddit

Intelligent flash storage arrays

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. ®

Intelligent flash storage arrays

More from The Register

next story
NSA mass spying reform KILLED by US Senators
Democrats needed just TWO more votes to keep alive bill reining in some surveillance
Google bags OBSCENELY LARGE Times Square ad space for New Year's
Choc Factory pays millions for whacking new digital screen
'Cleantech' a dirty word for VCs? RUBBISH!
They just think the current schemes are terrible
Bada-Bing! Mozilla flips Firefox to YAHOO! for search
Microsoft system will be the default for browser in US until 2020
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.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Mitigating web security risk with SSL certificates
Web-based systems are essential tools for running business processes and delivering services to customers.
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.