26 Mar 2014

$US20m new capital for Vend

4:56 pm on 26 March 2014

Vend, a New Zealand-based point-of-sale software company has attracted $US20 million in new capital from one the world's best-known internet entrepeneurs, Peter Thiel.

A cloud computing entrepreneur who has just attracted investment from one the world's best-known internet entrepeneurs, Mr Thiel says tech products could very soon become New Zealand's number one class of exports.

Former PayPal mogul Peter Thiel boosts his investment in NZ.

Former PayPal mogul Peter Thiel boosts his investment in NZ. Photo: AFP

The founder of PayPal and an Australian company, Peg Capital, are providing Vend with capital to expand.

Vend, which has attracted $11 million in funding from three previous capital raising rounds since it was founded in late 2010, targets its services at small-to-medium companies.

Vend provides its services via so-called cloud computing and currently serves more than 10,000 stores in more than 100 countries.

Founder and chief executive Vaughan Rowsell said it was important to his company that it could attract the support of somebody such as Mr Thiel.

"Peter and the guys at Square Peg are really keen on industries that are being disrupted by the internet and technology," Mr Rowsell said.

"They can really see the benefit that we can deliver to tens of thousands of retailers globally."

Vend had a goal to becoming the number one retail platform, powering most retail worldwide, he said.

The new capital was enough to fund the business for at least a year, after which the company would consider a stock market listing.

As Radio New Zealand reported on Monday, the New Zealand Technology Industry Association estimates there are currently 10,000 IT vacancies which companies are struggling to fill.

The association estimates the IT industry contributes nearly $30 billion a year to the economy.