Tax and accounting software provider for digital economy TaxBit managed to raise a $130 million Series B funding round at a $1.33 billion valuation.
This comes just five months after TaxBit announced their Series A raise of $100 million. IVP and Insight partners co-led the series B with additional participation. It includes Tiger Global, Paradigm, 9Yards Capital, Sapphire Ventures, Madrona Venture Group, and Anthony Pompliano.
TaxBit has tripled headcount while launching HQ2 in Seattle. The start-up works with a Governmental agency IRS, to provide data analysis and tax calculation support for taxpayers with digital assets. It also announced that Sam Bankman-Fried’s FTX.US will partner with TaxBit.
“Dozens of financial institutions are deploying TaxBit’s Tax Centre Suite technology,” said CEO Austin Woodward.
The company plans to utilize its funds to scale its tax and accounting offering across enterprise, consumer and government sectors. TaxBit plans to double its headcount by year’s end and continue to open new offices in the US and UK.
“Tax reporting requirements make TaxBit’s a ‘must have’ for both crypto-native companies as well as traditional financial services companies as they increasingly embrace crypto,” said Tom Loverro, General Partner at IVP.
“The Tokenization of our global financial system is underway, and our current tax, accounting, and ERP software infrastructure isn’t equipped to manage this shift,” said Nikhil Sachdev, a Managing Partner at Insight partners who joined the company as a board observer.
TaxBit has built a platform to help manage tax compliance and financial reporting on crypto transactions across industries.
“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. TaxBit is changing the game by providing clients and their users modern, real-time technology that affords visibility and tax optimization opportunities throughout the year.”