TaxBit, a cryptocurrency tax software provider based in the United States, has a valuation of more than $1.3 billion after a recent funding round, the fund is aimed at helping the company expand into the US and UK.
IVP and Insight Partners led a $130 million Series B investment round for TaxBit, with participation from Bitcoin bull Anthony “Pomp” Pompliano, Tiger Global, Paradigm, 9Yards Capital, Sapphire Ventures, and Madrona Venture Group, according to a Thursday release.
The funds will be used to expand the company’s tax and accounting offerings system, as well as build additional offices in the United States and the United Kingdom, according to the company.
The investment comes five months after the company received $100 million in a Series A round to fuel its growth into the United Kingdom, according to the company.
TaxBit opened an office in Seattle this year with the intention of providing people with crypto-related data analysis and tax calculation assistance through the Internal Revenue Service, or IRS.
On Pomp’s YouTube channel today, TaxBit CEO Austin Woodward stated that the business has anticipated increased crypto tax reporting obligations from the US government, including those in the $1.2 trillion bills that passed the US Senate this week.
Crypto taxes, according to Woodward, “As numerous U.S. senators submitted revisions to the bill’s language targeting crypto brokers, it became “the number one item addressed and discussed.”
TaxBit was launched in 2018 with the goal of automating portions of crypto tax compliance for businesses, consumers, and governments.
This year, the company became a unicorn, with a valuation of at least $1 billion, and it has worked with a number of companies that deal with digital assets, including prominent crypto exchange Gemini.
“We are living in a period when everything, even traditional assets, is turning digital,” Woodward added. “As we’ve designed and deployed modern tax and accounting software for digital assets, it’s become evident that traditional tax information reporting solutions are based on old technology and deliver a terrible customer experience.”
