At the recent Xero Xerocon Accounting conference, MD Gary Turner said he hoped to grow the business to service the accounts of 1 million of the UKs 5.2 million small businesses. A tall order, but today’s announcement of a substantial investment into the business shows that Gary was being serious and he now has a cash war chest of £184.5million (US$213.5 million) to achieve that goal.
The new £71.7 million (US$110.8 million) investment comes from Accel Partners and Matrix Capital Management with Accel Partners, one of Silicon Valley’s top venture capitalist firms, investing £64.7 million (US$100m), while Xero’s largest institutional investor Matrix Capital Management has agreed to spend an additional £7.0 million (US$10.8m).
This latest investment will be used to fuel continued innovation and growth globally, but specifically to drive its growth in the United Kingdom and United States.
Xero CEO Rod Drury said: “We welcome Accel as strategic investors in Xero, and are delighted with Matrix’s continued support. Our ability to attract capital 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.”
Xero has also announced key appointments to support its continued growth in the US market, with Russell Fujioka as its U.S. President, and Graham Smith to its Board of Directors as an additional independent, non-executive Director.