PayPal co-founder Peter Thiel, along with existing investors, has invested $49 million in Xero. It is Thiel’s 3rd investment in Xero. Earlier this year, Thiel and existing investors put $16.6 million into the company. He invested $3 million in New Zealand-founded Xero back in 2010.
Xero provides accounting software for small businesses and their advisors. The company allows its customers to see their cashflow in real time, to automatically import and code their bank statement, create and send invoices automatically, and to get paid online.
“Over the past two years of our involvement with Xero, we have seen the team consistently meet and exceed their ambitious goals,” says Andrew McCormack of Valar Ventures. “The incumbent software vendors in the small business accounting space are constrained by channel conflicts and legacy interfaces. The 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.”
Founded in July 2006 by technology entrepreneur Rod Drury and specialist small business accountant Hamish Edwards, Xero was originally based in New Zealand. The company only entered the United States market in 2011. Since then, it has seen its revenue and customer base double, and the company expects to see both double again in its full year ending at the end of March 2013. This is the reason Xero sees itself “as the leading challenger,” to the biggest name in the small business accounting space: Quickbooks.
Xero, which has offices in New Zealand, Australia, the United Kingdom and the United States, where it is based in San Francisco. It has over 100,000 paying customers and 200,000 users in over 100 countries. Xero is listed on both the New Zealand Stock Exchange and the Australian Securities Exchange.