Shares in accounting software company Xero fell to $13.90 in morning trading on Wednesday.
The shares have more than doubled in the last three months and were sold at $1 each when the company floated in May 2007.
On Tuesday, Xero reported it had $78 million in cash at 31 March, having raised $60 million through a private placement in December.
Xero burnt through $6.7 million in cash in the three months ended March.
