Cryptocurrency Tax Automation Firm Gets A $100 Million Funding Boost
As the prices for digital tokens rise, cryptocurrency tax and accounting services could grow into a big business—at least, that’s the gamble that some of the world’s largest investors are taking.
Salt Lake City-based TaxBit, a tax and accounting automation software designed for cryptocurrency holdings, closed a $100 million Series A funding round last week, led by investment firms Paradigm and Tiger Global.
Launched in 2018, TaxBit purports to automate cryptocurrency tax compliance for enterprises, consumers and governments, thus far helping customers produce and file more than one million sets of tax forms.
“At TaxBit, we believe that one of the greatest financial innovations and disruptions of the last century, cryptocurrency, should not be weighed down by the complexities of tax and accounting,” said Austin Woodward, TaxBit CEO, in released comments. “The past 12-months at TaxBit have been monumental, as our products are removing some of the largest roadblocks of this emerging asset class. With the support of Paradigm, Tiger Global, and many other amazing investors, we are excited to continue to scale world-class tax and accounting products so that cryptocurrency can continue to thrive among enterprises, consumers, and governments.”
The company says that it is now at work developing an SEC-grade accounting enterprise resource-planning offering, and that it is planning to expand internationally later this year.
Other investors in the initial funding round included PayPal Ventures, Coinbase Ventures, Winklevoss Capital, Bill Ackman, Ryan Smith (chairman of Qualtrics), Anthony Pompliano, Michael Vaughan (former Venmo COO), Galaxy Digital, Valar Ventures, Collaborative, Global Founders Capital, Album Ventures, TTV Capital and Original Capital.