Xero became a $4 billion company on Tuesday - measured by market value - after its shares hit a new high.
It has overtaken Contact Energy to become the fourth largest listed company by value, behind Fletcher Building, Auckland Airport and Telecom.
Xero chief executive Rod Drury. Photo: XERO
The online accounting software has gained $1 billion dollars in value in just three weeks.
On Tuesday its shares jumped as high as $33.90 before closing at $33.15, up 10%, which valued the company at $4.23 billion, only marginally less than Telecom.
Xero founder and chief executive Rod Drury is touring the United States meeting investors, and says his firm is getting a lot of attention there.
He says he had a positive response from investors in Boston and New York and the company has profile in US technology media.
The head of equities at Tyndall New Zealand, Rickey Ward says investors treat technology companies differently to other stocks.
Mr Ward says Xero is driving interest in other technology shares including the newly listed GeoOp which jumped 20 cents to $2.95 on Tuesday.
"The cynics would say that you have an element or an air very similar to what happened in the tech boom-and-bust, where all these IT companies came and listed that didn't make any bottom-line profit: they were all built around momentum and profit".
A number of those companies did not survive.
However Mr Ward says Xero's money raising has removed concerns it may not have had enough cash to continue it's growth.
"Companies like Xero are not valued under traditional analysis; they are driven off momentum more than anything. Remove the hurdle about capital requirement - that's been removed - and now its all about continuing to illustrate that they are getting more and more people signing up for their product.
"If you show that then people will continue to give you credit that you will one day become a dominant player and they'll pay for you now."
