Cryptocurrencies and digital assets accounting entity raises 130 million USD
TaxBit a tax and accounting software provider for cryptocurrencies and digital assets has raised $130 million Series B funding round. It is now valued at a $1.33 billion. The round was led by IVP and Insight Partners with additional participation including Tiger Global, Paradigm, 9Yards Capital, Sapphire Ventures, Madrona Venture Group, and Anthony Pompliano. The platform helps everyone from consumers, exchanges and government to enterprises easily manage tax compliance and financial reporting on cryptocurrencies and digital assets transactions.
This investment comes just five months after the company raised a record breaking 100 million series A.
FTX CEO Sam Bankman-Fried commented, “FTX US is excited to partner with TaxBit in bringing a world-class tax experience directly to our platform. FTX US users will have access to portfolio performance statements, tax optimization tools, and year-end tax forms that make it easy for users to report and file their taxes. TaxBit’s technology supports FTX’s commitment to compliance while focusing on the customer experience.”
TaxBit will use the funds to scale its multi-channel ecosystem of tax and accounting offerings across enterprise, consumer, and government sectors. The company plans to double headcount by the end of the year and continue to open new offices in the USA and UK to fuel international expansion.
“Tax reporting requirements make TaxBit a ‘must have’ for both crypto-native companies as well as traditional financial services companies as they increasingly embrace cryptocurrencies,” said Tom Loverro, General Partner at IVP. “TaxBit has emerged as the clear market leader in its offering to enterprises and tax authorities. It is a privilege to partner with Austin and the TaxBit team on their next phase of growth.”
“TaxBit is pioneering a comprehensive suite of cryptocurrency tax products, and is poised to capitalize on incredibly strong industry and regulatory tailwinds,” added Ajay Vashee, General Partner at IVP, who will join the company as a board observer.
Nikhil Sachdev, Managing Partner at Insight Partners, will join the company as a board observer. “The tokenization of our global financial system is underway, and our current tax, accounting and ERP software infrastructure isn’t equipped to manage this shift. TaxBit has emerged as a leader in the industry and the platform helps everyone from consumers, exchanges and government to enterprises easily manage tax compliance and financial reporting on crypto transactions. We’re thrilled to be part of this next chapter of TaxBit’s rapid growth.”
Digital asset adoption continues to quickly go mainstream as institutional investors and global payment providers offer cryptocurrency alongside traditional assets. The digital economy’s need for tax and accounting software grows with the industry as regulators require more formal reporting practices.
“We are living in a time where everything is going digital, including traditional assets,” said Austin Woodward, TaxBit CEO. “As we’ve built and deployed modern tax and accounting software tailored to digital assets, it’s become clear that legacy tax information reporting solutions are built on antiquated technology that provides a poor client experience. TaxBit is changing the game by providing clients and their users modern, real-time technology that affords visibility and tax optimization opportunities throughout the year.”
