Rod Drury, founder and CEO of cloud accounting platform Xero, explains the unique distribution economics of small business software.
Assertion Partly supported
Drury: Xero added more global small businesses than Intuit did last year
“We actually added more small business, small businesses globally to our brand, And Intuit added to their brand last year, and they spent 1.2 billion to do it”
Disclosure
Drury: Xero IPO'd first before raising from hedge funds and VCs
“We did our IPO first. Then we brought in the hedge funds, who, because of the compression in the US market with BC's doing most of the big deals, the private, the hedge fund guys, sorry, had to go out and find global deals. And then it's only really recently t…”
Disclosure
Drury: Xero raised $15M at a $55M valuation in day-one IPO
“So we raised fifteen million dollars at a fifty-five million dollar valuation, which some people thought, ah, was crazy, but, you know, now, even in this depressed, crazy market time, you know, in a short time, ah, our company's worth over two billion dollars.”
Disclosure
Drury: Xero's major global rivals Sage, MYOB, and Intuit lack founder leadership
“We compete with, you know, three, well, two, two mainly really large companies, but three companies around the world, Sage in the UK, NYB in this part of the world, and Intuit in the US, and none of those are founder-led companies, and there's very few founder…”
Assertion Contradicted
Drury: Xero serves 25% of all businesses in Australia and New Zealand
“We've you know, we've got 25% of all New Zealand businesses, 25% of all Australian businesses, and we're a leader there.”
Assertion Not checkable as stated
Drury: Xero is a UK leader and beat Sage to cloud accounting
“We're a leader in the UK, and we've beaten Sage to the cloud”