TaxBit raises $100 million to enable mainstream cryptocurrency adoption
TaxBit, which offers cryptocurrency tax and accounting automation software announced today a record-breaking $100 Million Series A funding round led by Paradigm and Tiger Global with additional participation from PayPal Ventures, Coinbase Ventures, Winklevoss Capital, world-renowned investor Bill Ackman, Qualtrics co-founder and chairman Ryan Smith, Anthony Pompliano, former Venmo COO Michael Vaughan, Galaxy Digital, Valar Ventures, Collaborative, Global Founders Capital, Album Ventures, TTV Capital, Original Capital, and more.
This round of investment comes as cryptocurrency continues to see exponential growth with a market cap of $1.5 trillion, increased interest from retail investors, asset managers, institutional investors, companies looking to diversify their portfolios, and the industry’s first-ever S-1 filing from a cryptocurrency exchange. The importance of TaxBit’s tailored tax and accounting software is readily apparent.
“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. “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.”
Launched in 2018, TaxBit’s platform automates all aspects of cryptocurrency tax compliance for enterprises, consumers, and governments. TaxBit’s platform has produced and helped customers file over one million sets of tax forms across the market verticals it serves. TaxBit Enterprise and TaxBit Consumer transform the cumbersome experience of cryptocurrency tax reporting in a way that not only ensures compliance with tax law but also helps users actively tax optimize their investments and use of cryptocurrency.
Tax compliance isn’t the only focal point of the company. Working hand-in-hand with several of the leading cryptocurrency platforms, TaxBit is also developing the industry’s first Big Four & SEC grade accounting ERP solution that will publicly launch later this year, along with plans for international expansion in 2021.
“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,” said Matt Huang, Co-Founder Paradigm.