U.S. crypto tax compliance startup Taxbit has raised $100 million in a Series A funding round led by investment firms Paradigm and Tiger Global. Paypal Ventures, Coinbase Ventures, and others including Bill Ackman, Ryan Smith, and Anthony Pompliano also joined the round.
Taxbit chief executive officer Austin Woodward said the funds will be invested in the companyâ€™s enterprise tools as well as used to expand into Europe this year, with the U.K. as the first port of call.
â€œOne of the greatest financial innovations and disruptions of the last century, cryptocurrency, should not be weighed down by the complexities of tax and accounting,â€ Woodward said in a March 3 blog post.
â€œOur products are removing some of the largest roadblocks of this emerging asset class. With the support of Paradigm, Tiger Global â€¦ 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,â€ he added.
Founded in 2018, Taxbitâ€™s platform automates all aspects of crypto tax compliance for individuals, enterprises â€” such as crypto exchanges, wallet providers, lending platforms etc. â€” and local governments that are receiving bill payments in virtual currency. The company says it has processed more than 1 million tax forms to date.
Per the blog post, the investment round also comes in response to growing global demand for crypto services, as digital asset markets rally, driving the industryâ€™s total market capitalization to around $1.5 trillion. â€œThe importance of Taxbitâ€™s tailored tax and accounting software is readily apparent,â€ noted Michelle Oâ€™Connor, Taxbitâ€™s vice president of marketing.
Taxbit hopes to offer an enterprise resource planning tool for companies in compliance with the U.S. Securities and Exchange Commission. Woodward told Forbes that the tool will help entities â€œmanage crypto transactions for optimal tax results much like other software tools do for foreign currencies.â€
What do you think about Taxbitâ€™s tax solution? Let us know in the comments section below.