TaxBit, a U.S.-based cryptocurrency tax automation software provider, announced on Monday it secured $5 million through its latest seed funding round. Participants of the round included TTV Capital, Dragonfly Capital Partners, Collaborative Fund, Winklevoss Capital, Valar Ventures, Global Founders Capital, Table Management, and Album VC, which previously led TaxBit’s pre-seed round.
Founded in 2018 by CPAs, tax attorneys, and software developers, Taxbit claims it was created in order to enable widespread cryptocurrency adoption by automating the “regulatory hurdle” of tax compliance.
“TaxBit launched its consumer product in January 2019 and has since helped thousands of cryptocurrency users automate their taxes. The company’s consumer product is often referred to as the ‘TurboTax of crypto,’ as users can easily use TaxBit’s do-it-yourself platform to produce all of their required crypto tax forms in minutes.”
Last year, TaxBit launched its enterprise tax center suite that is now being deployed by cryptocurrency exchanges and merchants. Similar to the tax centers provided by equity trading platforms. Austin Woodward, CEO and Founder of TaxBit, stated:
“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.” He continues, “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 reported it plans to use the funds raised to further enhance its products and accelerate customer growth, both in the United States and internationally in regions including Canada, UK, and Australia.