Xero CEO Rod Drury announced a strategic investment of NZ132.9 by Silicon Valley venture capital firm Accel Partners at NZ$20 per share, and a further NZ$14.3 million in additional capital investment from existing shareholder Matrix Capital Management.
Accel, which focuses on early stage and growth stage investments, will invest through a number of funds under its management.
Matrix is Xero’s largest institutional investor.
Xero (ASX:XRO) also announced continuing expansion of its US and global leadership teams with the appointment of Russell Fujioka, as US President, effective immediately. Fujioka is based at Xero’s US headquarters in San Francisco. Drury said Fujioka brings to Xero significant experience in sales, digital marketing and operational management of high growth technology businesses.
The company also adds Graham Smith - former Saleforce chief financial officer and Splunk board member – to the Xero board as an additional independent, non-executive director. Smith has significant experience scaling SaaS businesses.
The investments by both Accel and Matrix are expected to close in mid-March. The Accel investment is subject to conditions in the agreements being met, but the Matrix deal is not subject to any conditions other than the closing of the Accel Funds investment.
“We welcome the Accel Funds as strategic investors in Xero, and are delighted with Matrix’s continued support,” Drury said.
“Our ability to attract capital and leadership of this calibre is testament to our success and our potential to become the small business SaaS platform of choice for entrepreneurs around the globe.”
“Accel always looks for enduring technologies with global reach and we see the need and opportunity for millions of small businesses to grow on Xero’s platform,” said Andrew Braccia, partner at Accel.
“We’ve worked with several other leading companies in the region to broaden their global reach and we hope this experience will be valuable as Xero’s strong leadership team looks to expand in the United States.”