Xero gets $4 million for US expansion
Online Kiwi accounting software provider Xero has received a NZ$4 million investment from Silicon Valley tech guru, Peter Thiel.
San Francisco-based investor Peter Thiel is to invest NZ$4 million to support Xero’s expansion into the US market. He will also join Xero’s US Advisory Board.
Thiel co-founded and led PayPal, which was acquired in 2002 by eBay for US$1.5 billion. He was also the first external investor in Facebook, and serves on its board.
"Millions of small and medium-sized businesses need an online accounting solution, especially in this time of increasing regulatory and tax complexity,” said Thiel. "Xero’s tight focus, robust product, and strong team should enable it to expand tremendously in the United States.”
The investment will be made through Valar Ventures LP, Thiel’s New Zealand investment firm.
Xero CEO Rod Drury, added, "We are delighted to welcome Peter and his team at Valar Ventures as strategic investors in Xero. Access to their extensive networks will provide a major boost as we take on Quickbooks in the vast US small business market.
"We have taken a measured approach to our US market entry so far. With the support of Peter and his team, we believe we are now strongly positioned to enter the US and capitalise on the opportunity that this market represents.”
Xero began developing opportunities in the United States market in March 2009 when it appointed Andy Lark to be the first member on the Xero US Advisory Board.
