The XERO FPO NZ (ASX: XRO) share price is moving back towards a 52-week high today on news reports that another respected U.S. venture capital fund has bought a 1.3% stake in the business.
The Australian Financial Review reporting that private investment group Technology Crossover Ventures is Xero's latest Sillicon Valley-based investor after paying NZ$28.5 million for its stake in the business.
Although it is long way from turning a profit, Xero is one of the S&P/ASX 200's (Index: ^AJXO) (ASX: XJO) largest and fastest-growing tech companies in terms of revenue growth and subscriber numbers, which explains why it readily attracts investment from venture capital type operators.
In Australia however more conservative fund managers have not been as keen largely due to the fact it is still posting enormous losses despite the strong topline growth.
Today shares in the cloud-accounting business are changing hands for $18.95 and were given additional impetus recently after the company announced it surpassed 1 million subscribers on its global accounting platform at the end of March 2017.
Over the past year the shares are up around 20% with the company to report its half-year numbers in around one month's time.
At its last update the chief executive forecast that the company would turn cash flow positive within its current cash balance and many investors' eyes will be focused on its progress towards meeting this forecast when it does reveal its latest financial results.
If the progress is reasonable and investors can see that the business is making concrete progress towards profitability I expect its share price could enjoy a strong second half to the year.
Other tech stocks on the ASX worth watching include logistics business Wisetech Global Ltd (ASX: WTC) and Technology One Limited (ASX: TNE).
