Already classified as a unicorn startup, United States-based cryptocurrency tax software developer TaxBit now has a valuation of more than $1.3 billion after a recent funding round.
According to a Thursday announcement, IVP and Insight Partners led a $130 Series B funding round for TaxBit with participation from Bitcoin bull Anthony "Pomp" Pompliano, Tiger Global, Paradigm, 9Yards Capital, Sapphire Ventures and Madrona Venture Group. The company said it planned to use the funds — which bring its valuation to $1.33 billion — to scale its tax and accounting offerings system as well as open new offices in the United States and the United Kingdom.
The investment comes five months after the company raised $100 million in a Series A round, which it said would be used to fund its expansion into the United Kingdom. This year, TaxBit launched an office in Seattle and plans to provide crypto-related data analysis and tax calculation support for taxpayers through the Internal Revenue Service, or IRS.
TaxBit CEO Austin Woodward spoke on Pomp’s YouTube channel today, saying that the company had anticipated additional crypto tax reporting requirements from the U.S. government, such as those in the $1.2 trillion bill that passed the U.S. Senate this week. According to Woodward, crypto taxes were "the number one topic debated and discussed,” as several U.S. senators proposed amendments modifying the language regarding crypto brokers in the bill.
Launched in 2018, TaxBit is designed to automate aspects of crypto tax compliance for enterprises, consumers and governments. The company achieved unicorn status this year — a valuation of at least $1 billion — and has partnered with many firms handling digital assets, including major crypto exchange Gemini.
"We are living in a time where everything is going digital, including traditional assets," said Woodward. "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.”