Crypto Tax Compliance Firm TaxBit Raises $5M USD In Seed Funding

Investing, News | January 7, 2020 By:

Crypto tax automation software provider TaxBit has raised $5 million in a seed funding round from major venture capital firms. Investors include Fintech venture firm, TTV Capital, Dragonfly Capital Partners, Collaborative Fund, Winklevoss Capital, Valar Ventures, Global Founders Capital, Table Management, Album VC, who previously led TaxBit’s pre-seed round, and more.

Founded by CPAs, tax attorneys, and software developers, TaxBit aims to enable widespread cryptocurrency adoption by automating the regulatory hurdle of tax compliance. The company’s software is used by thousands of everyday crypto users, in addition to crypto exchanges and merchants with regards to their 1099 and enterprise reporting requirements.

In a press release, the firm said that the latest funding is representative of the shift in how Americans are beginning to look at cryptocurrency in regard to taxes and government regulations.

“In such a highly regulated space with so many complexities, TaxBit is needed to remove the burden of proper cryptocurrency tax reporting from the shoulders of crypto users, exchanges, and merchants.” said Austin Woodward, CEO and Founder of TaxBit. “TaxBit’s software and tax experts will accurately handle all of the back-end complexities, while providing users with an intuitive, user-friendly experience on the front-end.”

TaxBit’s consumer product is often referred to as the “TurboTax of crypto,” as users can easily use the company’s do-it-yourself platform to produce all of their required crypto tax forms in minutes.

“Navigating cryptocurrency tax laws is a byzantine process,” said Winklevoss Capital Partner Sterling Witzke. “TaxBit’s technology eliminates this confusion and complexity by allowing crypto owners to seamlessly understand the full picture of their tax liability through an intuitive and easy-to-use platform. Solving for this pain point is integral to accelerating cryptocurrency adoption, and we are thrilled to back TaxBit on this mission.”

According to TaxBit the funds will be used to further enhance its products and accelerate customer growth, both in the United States and internationally in regions including Canada, UK, and Australia.

“For cryptocurrency to proliferate further, an ecosystem of compliance tools must be created,” said Sean Banks, Partner at TTV Capital. “We are very impressed with the TaxBit team and the platform they are building. This technology is fundamental to the adoption of cryptocurrency, as it enables the industry to progress while being compliant with tax regulations worldwide.”