Crypto Software Firm’s Value Tops $1.3 Billion With New Funding
(Bloomberg) -- TaxBit Inc., a maker of cryptocurrency tax and accounting software, raised fresh funding that pushed its valuation to more than $1.3 billion.
The company raised $130 million in a Series B round led by venture firms IVP and Insight Partners. Tiger Global Management, Paradigm and 9Yards were also among the investors, TaxBit said in a statement Thursday.
TaxBit has vaulted to unicorn status amid the boom in cryptocurrency trading and as new federal regulations take hold requiring brokers to report transactions to the Internal Revenue Service. TaxBit seeks to cut through the complexity by offering individuals and institutions tools to track portfolios and trades and simplify tax reporting.
The company also announced a partnership Thursday with cryptocurrency exchange platform FTX US. It will give FTX users access to the full suite of TaxBit offerings. In the coming months, TaxBit plans to announce “dozens” of partnerships with banks, exchanges and brokerages, as well as tax authorities in the U.K. and European Union, said Austin Woodward, TaxBit’s chief executive officer.
The Salt Lake City, Utah-based company was founded in 2018 by Austin, an accountant, and his brother, Justin Woodward, a tax lawyer, and inspired by Austin’s tedious experience trying to file taxes on his cryptocurrency investments.
“In the digital asset space, the transaction volumes are so much more voluminous,” Austin Woodward said in an interview. “It was evident: ‘Software needs to solve this problem.’”
The company, which raised $100 million in March, has about 100 employees and has a goal of doubling headcount by year-end. Last month, TaxBit opened a second headquarters in Seattle and there are plans to open additional offices across the U.S. and in the U.K.
Sapphire Ventures LLC, Madrona Venture Group LLC and Anthony Pompliano, co-founder of Morgan Creek Digital Assets and a crypto evangelist, are among the other investors who participated in the $130 million funding round.
As part of the investment, Tom Loverro, a general partner at IVP and former board observer at Coinbase Global Inc., will join TaxBit’s board of directors. Nikhil Sachdev, a managing partner at Insight Partners, and IVP general partner Ajay Vashee will join the company as board observers.
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