Xero Raises $150 Million to Fund US Expansion

By Jason Bramwell
 
New Zealand–based online accounting software provider Xero said on October 13 it has raised $150 million to fund a major expansion in the United States.
 
Xero US headquarters, which recently moved into a new 25,000-square-foot facility in San Francisco, reported the new capital was raised from existing shareholders Valar Ventures (backed by PayPal cofounder Peter Thiel) and Matrix Capital Management as well as other investors in the United States and New Zealand. US investors accounted for $123 million of the $150 million raised. 
 
"Having empowered hundreds of thousands of small and medium-sized businesses in New Zealand, Australia, and the United Kingdom, Xero is poised to do the same for its twenty-nine million potential customers in the United States," David Goel, managing member of Matrix Capital Management, said in a written statement.
 
Xero now has 100 employees across the United States, including in Los Angeles, New York, and Austin. A new office opened October 14 in Denver that will help bolster Xero's US customer service team and the company's global 24/7 support.
 
Xero also stated the new funding will be used to go head-to-head with its main online accounting software rival, Mountain View, California–based Intuit and its flagship product, QuickBooks.
 
On October 8, Xero launched a free conversion service that will enable small businesses to migrate their QuickBooks data into Xero's Cloud accounting service. Xero also announced last week it experienced 89 percent global growth in customers for the year up to September 30 as well as an 84 percent increase in global revenues.
 
"This new capital will help us to continue our mission of bringing powerful and accessible financial and billing systems to small businesses and their financial advisors anytime, anywhere," Xero US President Jamie Sutherland said in a written statement.
 
Related article:
 

You may like these other stories...

As complex as federal tax can get, at least you're only dealing with one agency: the IRS. But when you get into state and local sales tax, you're coordinating hundreds of jurisdictions that are constantly changing....
All that was needed on Tuesday was a voice vote for the House of Representatives to pass a bill that would prevent state and local governments from taxing access to the Internet.Now the ball is in the Senate’s court....
Many bootstrapped startups do not have the budgets to bring on dedicated IT experts who can build out infrastructure and provide immediate solutions to end users. Small businesses must simplify both hardware and software...

Upcoming CPE Webinars

Jul 23
We can’t deny a great divide exists between the expectations and workplace needs of Baby Boomers and Millennials. To create thriving organizational performance, we need to shift the way in which we groom future leaders.
Jul 24
In this presentation Excel expert David Ringstrom, CPA revisits the Excel feature you should be using, but probably aren't. The Table feature offers the ability to both boost the integrity of your spreadsheets, but reduce maintenance as well.
Jul 31
In this session Excel expert David Ringstrom helps beginners get up to speed in Microsoft Excel. However, even experienced Excel users will learn some new tricks, particularly when David discusses under-utilized aspects of Excel.
Aug 5
This webcast will focus on accounting and disclosure policies for various types of consolidations and business combinations.