Accounting software firm Xero has raised $20 million to fund growth overseas by selling new shares to key investors.
New shares have been sold at $2.75 each to independent chairman Sam Knowles, independent director Sam Morgan, the former co-founder of MYOB Craig Winkler, and the investment vehicle of Peter Thiel who co-founded Paypal and was one of the first investors in Facebook.
Now Xero is offering smaller shareholders the chance to buy up to $15,000 of extra shares at the same price.
Chief executive Rod Drury says Xero will use the money to boost its presence overseas.
He says more than 70% of shareholders bought shares during the last share purchase plan.
Meanwhile Xero has also bought the software developer, Max Solutions of Auckland, for $2 million in cash and $4 million in Xero shares.
Xero already had a 16% stake in the company which has an online job, time and invoice management system, used by more than 100 businesses in 35 countries.
Shares in Xero have risen 11 cents to $3.05 on Thursday.