TaxBit Raises $130M Series B at $1.33B Valuation
It's the second major funding round for the tax software firm this year.
:format(jpg)/cloudfront-us-east-1.images.arcpublishing.com/coindesk/ESMTPIOZ6NBJ7GR7XCADHBLTOU.jpg)
Left to right: TaxBit co-founders Justin and Austin Woodward
Crypto tax software firm TaxBit restocked its war chest Thursday with a $130 million Series B that valued the startup at $1.33 billion.
IVP and Insight Partners led the round just five months after TaxBit’s Utah-based team raised its first $100 million from Tiger Global, Paradigm and other VCs, most of whom joined in the Series B.
Since then, the startup, which provides reporting software to the Internal Revenue Service (IRS) and a bevy of institutional clients, has grown headcount to 120 and added a second homebase in Seattle. It also announced Thursday that Sam Bankman-Fried's FTX.US will team up with the service.
“Dozens of financial institutions are coming to TaxBit platform,” CEO Austin Woodward told CoinDesk. “So we’re staying busy.”
The fresh funding comes as the crypto industry faces a clouded regulatory future. Even so, one thing seems clear: More taxes, and with it more reporting requirements, are almost certainly on the way.
“We’ve been anticipating regulation on the information reporting front for years,” Woodward said. He said TaxBit has been building its tech platforms accordingly. “We’re at the forefront here, proactively getting ahead of this.”
TaxBit intends to continue investing in a global product line with a special focus on the U.K., EU and Canadian markets, Woodward said. The firm is also eyeing tax reporting opportunities beyond just crypto; Woodward said the platform now supports commodities and equities too.
“This is an opportunity that expands well beyond cryptocurrency,” he said.
DISCLOSURE
Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.