TaxBit, a US-based automated tax and accounting software developer that counts corporates PayPal and Coinbase among its investors, has raised $130m in series B funding at a valuation of $1.33bn.
Growth equity firm Insight Partners and venture capital firm IVP co-led the round, which also featured Paradigm, Tiger Global Management, 9Yards Capital, Sapphire Ventures, Madrona Venture Group and private investor Anthony Pompliano.
Founded in 2018, TaxBit provides software which automates tax calculations on cryptocurrency transactions and lets traders track their crypto portfolios in real time to make tax-optimised trades. The company will use the capital to scale its offering across consumer, enterprise and government channels.
The funding comes after TaxBit secured $100m in a March 2021 series A round co-led by Paradigm and Tiger Global that included PayPal Ventures and Coinbase Ventures, investing on behalf of digital payment processor PayPal and digital currency exchange Coinbase respectively.
Other participants in the series A included Winklevoss Capital, Valar Ventures, Galaxy Digital, Collaborative, Global Founders Capital, Album Ventures, TTV Capital, Original Capital, as well as angel investors Bill Ackman, Ryan Smith, Anthony Pompliano and Michael Vaughan.
TaxBit had raised $750,000 in pre-seed funding from Album VC at launch, according to a securities filing. It followed up in January 2020 with $5m of seed funding courtesy of Album VC, Global Founders Capital, Valar Ventures, TTV Capital, Dragonfly Capital Partners, Collaborative Fund, Winklevoss Capital and Table Management.
Austin Woodward, TaxBit’s CEO, said: “As we have built and deployed modern tax and accounting software tailored to digital assets, it has 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 optimisation opportunities throughout the year.”
