US crypto tax compliance startup Taxbit has raised $ 100 million in a Series A funding round led by investment firms Paradigm and Tiger Global. Paypal Ventures, Coinbase Ventures and others including Bill Ackman, Ryan Smith and Anthony Pompliano also participated in the round.
Austin Woodward, Taxbit’s chief executive officer, said the funds would be invested in the company’s business tools and used this year to expand into Europe, with the UK being the first port of call.
“One of the greatest financial innovations and disruptions of the last century, cryptocurrency, shouldn’t be weighed down by the complexities of taxes and accounting,” Woodward said on March 3rd blog entry.
“Our products remove some of the biggest barriers in this emerging asset class. With the support of Paradigm, Tiger Global … we look forward to continuing to scale world-class tax and accounting products so that cryptocurrency can continue to thrive among businesses, consumers and governments, ”he added.
Established in 2018, the Taxbit platform automates all aspects of crypto tax compliance for individuals, businesses – such as crypto exchanges, wallet providers, credit platforms, etc. – and local governments that receive bill payments in virtual currency. According to its own statements, the company has processed more than 1 million tax forms to date.
According to the blog post, the investment round is also a response to growing global demand for crypto services as digital asset markets rebound and the industry’s total market cap soar to around $ 1.5 trillion. “The importance of Taxbit’s bespoke tax and accounting software is immediately apparent,” said Michelle O’Connor, vice president of marketing for Taxbit.
Taxbit hopes to provide companies with a corporate resource planning tool that is compliant with the US Securities and Exchange Commission. Woodward told Forbes said the tool will help companies “manage crypto transactions for optimal tax results, much like other foreign currency software tools”.
What do you think of Taxbit’s tax solution? Let us know in the comments below.
Photo credit: Shutterstock, Pixabay, Wiki Commons