{"id":37333,"date":"2023-10-20T14:49:30","date_gmt":"2023-10-20T14:49:30","guid":{"rendered":"http:\/\/startupsmart.test\/2023\/10\/20\/peter-thiel-backed-fund-pours-further-investment-into-xero-startupsmart\/"},"modified":"2023-10-20T14:49:30","modified_gmt":"2023-10-20T14:49:30","slug":"peter-thiel-backed-fund-pours-further-investment-into-xero-startupsmart","status":"publish","type":"post","link":"https:\/\/www.startupsmart.com.au\/uncategorized\/peter-thiel-backed-fund-pours-further-investment-into-xero-startupsmart\/","title":{"rendered":"Peter Thiel-backed fund pours further investment into Xero – StartupSmart"},"content":{"rendered":"

A venture capital firm backed by PayPal co-founder Peter Thiel has teamed up with another investor to pour US$49 million into New Zealand-founded start-up Xero, increasing the total amount raised to date by the cloud-based venture to US$67 million.<\/p>\n

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Valar Ventures is a global venture capital firm backed by Thiel who, in addition to co-founding PayPal, has invested in the likes of Facebook and Australian start-up ScriptRock<\/a><\/b>.<\/p>\n

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Thiel has also set up a $40 million venture capital fund<\/a><\/b> in partnership with the New Zealand Venture Investment Fund.<\/p>\n

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Valar Ventures, along with a handful of other investors, sunk $15 million into accountancy software company Xero<\/a> <\/b>in February this year.<\/p>\n

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Xero co-founder Rod Drury says the company has raised an additional US$49 million (NZ$60 million) from Valar Ventures and Matrix Capital Management; another existing investor.<\/p>\n

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This is Thiel\u2019s third investment in Xero. In addition to the funds he contributed in February, he invested $US3 million back in 2010.<\/p>\n

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\u201cIt\u2019s a huge endorsement for what we\u2019re doing and the great work our team continues to do,\u201d Drury says.<\/p>\n

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\u201cWe\u2019re just at the beginning of the business SaaS market and we have the resources to keep our foot on the throttle.\u201d<\/p>\n

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\u201cIt\u2019s been a pleasure dealing with Matrix and Valar. Both of them continue to provide fantastic experience and advice.\u201d<\/p>\n

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Valar Ventures is investing NZ$24 million and Matrix Capital is investing NZ$58 million. Their total investment of NZ$82 million includes a purchase of NZ$22 million of shares from Xero\u2019s three largest shareholders.<\/p>\n

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The decision to increase funding follows the announcement that Xero will accelerate its investment in the business to take advantage of market conditions.<\/p>\n

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Xero recently reported revenue of NZ$38.7 million as of 30 September 2012, up from NZ$18 million a year earlier.<\/p>\n

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The company expects to double its operating revenue for the full year to March 31, 2013.<\/p>\n

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\u201cOver the past two years of our involvement with Xero, we have seen the team consistently meet and exceed their ambitious goals,\u201d Valar Ventures\u2019 Andrew McCormack said in a statement.<\/p>\n

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\u201cThe combination of an experienced and focused team, superlative product, good timing and an absolutely huge market give us confidence that Xero has a very long runway.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

A venture capital firm backed by PayPal co-founder Peter Thiel has teamed up with another investor to pour US$49 million<\/p>\n","protected":false},"author":2,"featured_media":61945,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/posts\/37333"}],"collection":[{"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/comments?post=37333"}],"version-history":[{"count":0,"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/posts\/37333\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/media\/61945"}],"wp:attachment":[{"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/media?parent=37333"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/categories?post=37333"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/tags?post=37333"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}