Feeds

Xero gets $NZ60m to account for

Kiwi accounting software house expands

  • alert
  • submit to reddit

Securing Web Applications Made Simple and Scalable

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. ®

Build a business case: developing custom apps

More from The Register

next story
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Airbus promises Wi-Fi – yay – and 3D movies (meh) in new A330
If the person in front reclines their seat, this could get interesting
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
UK Parliament rubber-stamps EMERGENCY data grab 'n' keep bill
Just 49 MPs oppose Drip's rushed timetable
Want to beat Verizon's slow Netflix? Get a VPN
Exec finds stream speed climbs when smuggled out
Samsung threatens to cut ties with supplier over child labour allegations
Vows to uphold 'zero tolerance' policy on underage workers
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Mobile application security vulnerability report
The alarming realities regarding the sheer number of applications vulnerable to attack, and the most common and easily addressable vulnerability errors.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.