US-based cryptocurrency tax software platform and accounting firm, TaxBit raised US$ 100M in Series A funding round on 2 March 2021.
Investors: Paradigm, Tiger Global and Smith, PayPal Ventures, Coinbase Ventures, Winklevoss Capital, world-renowned investor Bill Ackman, Anthony Pompliano, former Venmo COO Michael Vaughan, Galaxy Digital, Valar Ventures, Collaborative, Global Founders Capital, Album Ventures, TTV Capital and Original Capital among others. As a result of its early success, the company is drawing the attention of many nationally prominent investment groups.
Purpose of funding: The funds will be utilized to drive TaxBit’s growth, as it plans to more than double its current team of around 40 employees.
Founded in 2018 by brothers Austin and Justin Woodward along with their cousin, Brandon Woodward, TaxBit aims to simplify and automate tax reporting duties for cryptocurrencies like Bitcoin, Ether and many others. It is on a mission to eliminate the cumbersome crypto tax reporting issues as a potential hindrance to the people interested in virtual currencies.
TaxBit, which initially focused on crypto tax software for consumers, has now expanded into the enterprise market and offers products for individuals and businesses both. It helps them to keep up with the IRS’ mounting reporting requirements and also tax optimize their investments and use of cryptocurrency. Moreover, TaxBit says that its platform is a great tool for the government and public agencies as well, that have dealings in digital currencies.
What the CEO has to say: “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. 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.” — TaxBit CEO, Austin Woodward.
What the investors have to say: “TaxBit is outgunning the competition when it comes to automating the tax challenges of crypto use and investment. The rise of cryptocurrency poses new tax and accounting challenges for individuals, businesses and governments alike. We believe TaxBit has built the best-in-class solution and are thrilled to be partnering with Austin Woodward and the rest of the TaxBit team.” — Matt Huang, former Sequoia Capital partner and co-founder of San Francisco-based Paradigm.
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