US investor buys stake in Xero

Photo / NZ Herald

San Francisco technology entrepreneur and investor Peter Thiel is to invest $4 million to support Kiwi online accounting software provider Xero's expansion into the United States.

Thiel, co-founder of PayPal and director of Facebook, will join Xero's US advisory board.

Xero said Thiel's investment would be made through his New Zealand investment firm Valar Ventures.

The capital raising, to be made via a placement, was expected to close next week, with shares at $1.4918.