Close

More US cash pumped into Xero

US-based Valar Ventures and Matrix Capital Management are upping their stakes in cloud accounting software maker Xero, which has yet to turn a profit but says it's focusing on ramping up growth.

xero investment investorsUS-based Valar Ventures and Matrix Capital Management are upping their stakes in cloud accounting software maker Xero, which has yet to turn a profit but says it's focusing on ramping up growth.

The Peter Thiel-backed Valar Ventures will raise its share in Xero to 7 percent from 3.9 percent, and Matrix's holding is rising to 9.8 percent from 1.8 percent, BusinessDesk reported.

Their collective interests are increasing by $60 million in freshly-issued capital and $22 million in shares purchased from Xero's largest shareholders –  director Craig Winkler, chief executive Rod Drury, and co-founder Hamish Edwards.

A total of 10 million new shares have been issued at $6 a share, though Xero units climbed to $6.55 following the announcement.

Xero reported $38.7 million in monthly revenues for November, up from $18 million a year earlier, and a $7.7 million loss for the six months to September.

Idealog has been covering the most interesting people, businesses and issues from the fields of innovation, design, technology and urban development for over 12 years. And we're asking for your support so we can keep telling those stories, inspire more entrepreneurs to start their own businesses and keep pushing New Zealand forward. Give over $5 a month and you will not only be supporting New Zealand innovation, but you’ll also receive a print subscription, an Idealog t-shirt and a copy of the new book by David Downs and Dr. Michelle Dickinson, No. 8 Recharged (while stocks last).