Xero raises $US150m

Today we are very excited to announce Xero has raised a further US$150 million of new capital from a range of investors including existing shareholders.

This is a very high quality funding round with our existing large investors Peter Thiel and Matrix Capital Management continuing to support us as we grow value. We  have added some of the smartest and largest technology investors on the planet shaping our register for success in the USA.

This capital raise allows us to continue building the world’s best team and our vision of supporting millions of small business customers and their advisors worldwide. It’s a clear endorsement of what we’ve achieved to date and sends a strong message on our aspirations.

For our customers, Xero has the financial footing to continue to build the world class team and tools to support your business for many years to come. For our accounting and bookkeeping partners, Xero has become the safe bet for your practice needs and will continue to deliver a wall of innovation to improve your productivity and profitability.

Thank you to those existing shareholders coming in again and our new shareholders that join our team. We truly appreciate the advice you give us and the access to your networks.

A special shout out to Xero CFO Ross Jenkins who has built relationships with the smartest investors in the industry and drove this round – bringing it together quickly and professionally. Also a sincere thanks to James Lee from First New Zealand Capital who worked hard with our local investors and many parties overseas.

On behalf of all of us at Xero, thank you again in your trust in us and allowing us to build a special global company.

We’ve put together a Storify selection of responses to the news. We welcome any questions in the comments below.

19 Comments

Heidi Seal
October 14, 2013 at 9:03 am

Super! Exciting times ahead

Kevin Mann
October 14, 2013 at 9:41 am

WOW! Great news (again)!

Jill Fryer
October 14, 2013 at 10:20 am

Fantastic news – onwards and upwards

Anton Gerner
October 14, 2013 at 10:33 am

#MEGAWIN! Well done!

Gayle Buchanan
October 14, 2013 at 10:36 am

thumbs up Ross

C Chen
October 14, 2013 at 10:42 am

Xero is the hero with no doubt…

Mike Porter
October 14, 2013 at 10:54 am

What wonderful news for users, for shareholders, employees and for the global accounting community. Serious investment in Xero = empowerment to small businesses everywhere. It’s not about becoming a global player, it’s now about becoming THE global player. Congratulations for de-risking Xero, but even better than that, you’re now firmly up on the foils – this time the Americans are co-funding the venture !

Wayne Schmidt
October 14, 2013 at 10:56 am

Great effort by all of the team at Xero. Awesome see the professional investment community understanding the Xero model of pure cloud and the focus on SMB’s with a recurring saas revenue model.

Alan Roberts
October 14, 2013 at 12:47 pm

Congratulations – a very timely move given the push into the US. When is the NASDAQ listing going to be announced?

Rod Drury
October 14, 2013 at 1:13 pm

NASDAQ is always an option for companies with global aspirations, but no decisions made. Focus for now is effective deployment of capital for future long term value. Still early days in the US and we need to prove ourselves there over the next couple of years as we have in our other markets. We have a lot of strategic options and time to think about future plans.

Nigel
October 15, 2013 at 7:12 am

Congratulations – very good news.

Can we expect to see (even) faster development on the back of this funding or is it required just to keep going as operations and marketing costs increase with the expanding business?

It sounds great and I’m sure it brings stability – but it would be interesting if you wished to put it in more context. But I’m not sure what it is wise to say – apart from watch out Sage and Intuit!

Derrick Storey
October 15, 2013 at 7:13 am

Congratulations and well done to the whole Xero Family. Fantastic news and thanks Rod for always encouraging us to stay firmly footed on the ground and to learn to walk before we run. Reminds me of the story of the man who built his house upon the rock and the man who built his house upon the sand. Upwards and onwards to an even brighter future. It is so awesome being a part of the Global Family.

John Naismith
October 16, 2013 at 6:26 pm

Congratulations Rod. What an endorsement of what you have already achieved. A true David and Goliath story. I am just getting Xero set up after crossing from MYOB. Looks like I am ‘riding the best horse’!

Mark Thomas
October 16, 2013 at 7:29 pm

SPP???

Adam
October 16, 2013 at 7:37 pm

No idea why you need funding – you charge us enough. Just please concentrate on getting Xero to respond more quickly (it’s damned slow sometimes) and give us the features we need. Your customers are already starting to look elsewhere.

John
October 16, 2013 at 10:47 pm

Shame you can’t continue xero for ordinary users as you used to with all that extra funding you have now – better watch the American economy!

Ryan
October 17, 2013 at 3:32 am

Congrats Rod – great software and win for XERO!

My simple brain can’t comprehend those figures!

Why anyone would invest close on £94 million on a subscription based service that nets £240 a year from a small company like mine.

Michael Voss
October 17, 2013 at 9:00 am

Well done Rod – a great endorsement. And thanks for fronting recently in the Manawatu Wanganui region. Much appreciated.

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