Originally Posted by
David B
Certainly having Theil on board gives this company a huge amount of credibility, I would suggest a lot more than it would have without him. Certainly there is no New Zealander who comes close to matching the street cred and mana he has in the US tech space. I imagine his involvement is well reflected in Xero's share price. Now that Xero has had an injection of fresh funds, it will allow the company to afford to continue operations and move on with its expansion planes in the near term. But endless capital raisings are not a sustainable business model. The central issue remains. When is the company going to start to become profitable? And secondly, and perhaps more importantly to shareholders, is the current share price a reasonable valuation for the company given its current financials and where it's at?