TaxBit: $130 Million Funding And $1.33 Billion Valuation

By Amit Chowdhry ● Aug 14, 2021
  • TaxBit announced recently it raised a $130 million Series B round of funding at a $1.33 billion valuation. These are the details.

TaxBit — a leading tax and accounting software provider for the digital economy — announced recently that it raised a $130 million Series B round of funding at a $1.33 billion valuation. This round of funding was led by IVP and Insight Partners with additional participation including Tiger Global, Paradigm, 9Yards Capital, Sapphire Ventures, Madrona Venture Group, and Anthony Pompliano. In connection with the funding, Tom Loverro, General Partner at IVP, has joined TaxBit’s Board of Directors.

This investment comes only 5 months after the company raised a record-breaking $100 million Series A. And since that time, TaxBit tripled headcount while launching HQ2 in Seattle, deployed services with the IRS, and entered into a number of partnerships with many leading digital asset platforms. Plus dozens of financial institutions are deploying TaxBit’s Tax Center Suite technology. Many of the platforms will be announced throughout the remainder of the year as 2021 tax season approaches with FTX US revealed as well.

TaxBit plans to use the funds to scale its multi-channel ecosystem of tax and accounting offerings across enterprise, consumer, and government sectors. And the company plans to double headcount by the end of the year and continue to open new offices in the USA and UK to fuel international expansion.

Digital asset adoption is continuing to quickly go mainstream as institutional investors and global payment providers offer cryptocurrency alongside traditional assets. And the digital economy’s need for tax and accounting software grows with the industry as regulators require more formal reporting practices.

KEY QUOTES:

“FTX US is excited to partner with TaxBit in bringing a world-class tax experience directly to our platform. FTX US users will have access to portfolio performance statements, tax optimization tools, and year-end tax forms that make it easy for users to report and file their taxes. TaxBit’s technology supports FTX’s commitment to compliance while focusing on the customer experience.”

— FTX CEO Sam Bankman-Fried

“Tax reporting requirements make TaxBit a ‘must have’ for both crypto-native companies as well as traditional financial services companies as they increasingly embrace crypto. TaxBit has emerged as the clear market leader in its offering to enterprises and tax authorities. It is a privilege to partner with Austin and the TaxBit team on their next phase of growth.”

— Tom Loverro, General Partner at IVP

“TaxBit is pioneering a comprehensive suite of cryptocurrency tax products, and is poised to capitalize on incredibly strong industry and regulatory tailwinds.” 

— Ajay Vashee, General Partner at IVP, who will join the company as a board observer.

“The tokenization of our global financial system is underway, and our current tax, accounting and ERP software infrastructure isn’t equipped to manage this shift. TaxBit has emerged as a leader in the industry and the platform helps everyone from consumers, exchanges and government to enterprises easily manage tax compliance and financial reporting on crypto transactions. We’re thrilled to be part of this next chapter of TaxBit’s rapid growth.”

— Nikhil Sachdev, Managing Partner at Insight Partners, will join the company as a board observer

“We are living in a time where everything is going digital, including traditional assets. As we’ve built and deployed modern tax and accounting software tailored to digital assets, it’s 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 optimization opportunities throughout the year.”

— Austin Woodward, TaxBit CEO