Xero has just announced its second funding round – they’re raising NZD23.2 million to enable a further scaling of their business internationally. This fundraising will be priced at $0.90 per share being a roughly 5% premium on the 5 day weighted avergae share price, but a 10% discount on that paid by the initial shareholders on listing.
Xero is also intending to offer existing shareholders the option to purchase shares at the same ($0.90) price.
Most interesting is the fact that Craig
Winkler, one of the founders of one of the “big three” desktop accounting software companies, MYOB, has subscribed for NZD18.0 million
of new Xero shares. MYOB was recently acquired by a private equity consortium and has a very chequered history with SaaS products – the investment by Winkler in Xero very much calls into question MYOB’s direction as well as validting the SaaS accounting model.
As well as Winkler two of the independant directors and a large Australasian bank have decided to be part of this round.
It’s a very significant injection of cash that will extend the runway significantly – and a coup given the current economic climate.
[..] Xero Announces Second Funding Round (cloudave.com) [..]
[..] Xero Announces Second Funding Round (cloudave.com) [..]