Cryptocurrency tax and accounting automation firm TaxBit raised $100m in a Series A funding round led by crypto investment fund Paradigm and Tiger Global.
The round also saw participation from PayPal Ventures, Coinbase Ventures and Winklevoss Capital. Other investors include Bill Ackman, Anthony Pompliano and Valar Ventures, among others.
The cash injection will be used to invest in software tools to ease operations as well as to expand internationally. The funding will allow the startup to provide corporations with a traditional enterprise resource planning tool which will help companies better manage and optimise crypto transactions.
TaxBit automates all aspects of cryptocurrency tax compliance for enterprises, US crypto exchanges, consumers and governments.
Given how crypto is becoming more mainstream with its market cap crossing $1.5tn, the industry comes with a host of tax and accounting challenges for individuals, businesses, and governments, the firm said.
Launched in 2018, TaxBit claimed that its platform has already helped customers file over one million sets of tax forms across the market verticals it serves. Its TaxBit Enterprise and TaxBit Consumer software ensures compliance with tax law as well as helps users optimise their investments.
With plans to scale up its operations, TaxBit said that it would debut the industry’s first Big Four & SEC grade accounting ERP solution later this year.
Working with several cryptocurrency platforms already, TaxBit will also continually integrate its B2B software across more US exchanges, it said.
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