Xero just raised a whopping $US110.8 million in a round led by top Silicon Valley VC Accel Partners

Xero’s Rod Drury. Photo: Alex Heber.

Cloud accounting company Xero just raised $US110.8 million ($A141.6 million) in funding in a round led by Accel Partners and Matrix Capital.

It’s also made two big hires, recruiting former Dell exec Russ Fujioka, as U.S. President and ex-Salesforce CFO Graham Smith will join the board Accel will invest $US100 million into the company at $US15.052 a share. Xero’s largest institutional investor Matrix Capital Management has chipped in the additional $US10.8 million.

Accel Partners is a major Silicon Valley venture capital firm focusing on early stage and growth stage investments. It was the lead investor in Chris Strode’s Invoice2Go and also made a $US60 million investment in Atlassian back in 2010.

The investment leaves Xero with a cash-filled war chest of about $NZ285 million.

Xero will use the proceeds from the issue of the shares to fuel continued innovation and growth globally and specifically to drive its growth in the United States and United Kingdom.

Company CEO Rod Drury said he was delighted Accel and Matrix were funding the company’s growth.

“Our ability to attract capital and leadership of this caliber is testament to our success and our potential to become the small business SaaS platform of choice for entrepreneurs around the globe,” he said.

The investment by Accel Partners is expected to close in mid-March 2015, provided that the conditions set out in the subscription agreement are met.

Accel partner Andrew Braccia said: “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.”

The investment by Matrix Capital is also expected to close in mid-March and is not subject to any conditions other than the closing of the Accel investment.

NOW WATCH: Tech Insider videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.