Reshaping TaxBit’s Future
A Letter from Lindsey
Published on:
As we enter the next phase for TaxBit, I’d like to highlight the origins of TaxBit, the remarkable path that has led us to this point, and the exciting next chapter that awaits.
In 2018, Austin and Justin Woodward started TaxBit, driven by the visionary goal of enabling digital assets for the global economy. We have since developed tax and accounting solutions built for enterprises operating within the financial ecosystem and digital asset industry, ensuring those businesses remain compliant. By streamlining tedious manual processes and adapting to the ever-evolving regulatory landscape, we have positioned TaxBit as the industry leader in digital asset tax and accounting compliance.
TaxBit’s greatest strength lies in our exceptional team, whose contributions have been instrumental in shaping our success. Our team is comprised of a diverse group of experts, including CPAs, tax attorneys, former IRS and FASB members, professionals from Big Four firms, and visionary engineering talent.
In January 2023, TaxBit acquired digital asset accounting firm Tactic, bringing automated accounting software enabling crypto financial visibility and compliance to market when the industry desperately needed it. Additionally, we have forged partnerships with Big Four firms, including Deloitte, EY, KPMG, and industry leaders like PayPal, Intuit, and others, to enable digital assets for the global economy.
We take immense pride in key milestones achieved thus far, including being selected by the IRS as their audit partner, being recognized on Forbes Fintech 50 list, and securing an impressive $235 million in funding from esteemed investors like IVP, Insight, Ribbit, Paradigm, and Haun Ventures.
Despite macroeconomic turbulence, marked by high-profile bankruptcies, fraud, regulatory uncertainty, and a challenging economic environment, TaxBit has shown unwavering dedication to overcome these obstacles. To address today’s market reality, we proactively restructured our business last week, resulting in the difficult decision to part ways with 80 valued team members.
We deeply appreciate the talent and commitment exhibited by these individuals. Their contributions have played a key role in bringing us to where we are today. Every departing team member will be provided with a comprehensive severance package, including:
Three months' salary
All outstanding equity awards accelerated to the next tranche
Cobra coverage for healthcare needs
Assistance for those on Visas to support a smooth transition.
As we embark on this new chapter, we believe in our exceptional talent, expertise, passion, and a strong foundation built on the legacy of TaxBit. Significantly increasing our runway, we can now adapt to market shifts and reinvest where we see the best growth prospects while maintaining our high level of service for existing clients. This transition moment allows us to explore new growth avenues and create even more success stories.
Throughout the remainder of 2023, we will focus on five key objectives:
Help TaxBit's clients and partners succeed: TaxBit's success is intrinsically tied to the satisfaction and loyalty of our clients. We are dedicated to delivering exceptional customer support and working with partners to expand the TaxBit ecosystem. We prioritize helping customers benefit from the use of our tax and accounting products, providing unmatched ease and compliance.
Accelerate TaxBit Accounting for large enterprises: Building on the acquisition of Tactic and our legacy accounting business, we are accelerating the roadmap to serve large enterprises dealing with digital assets. As more enterprises engage in business activities with digital assets (crypto, NFTs, tokenized assets), we are poised to meet the growing demands of this segment.
Expand collaboration with Regulatory Agencies: TaxBit is proud to expand its partnership with the IRS through DARTS, a cloud-based digital asset tax auditing Software as a Service platform designed to assist government revenue agents in performing their taxpayer examinations efficiently and accurately. We are also working with other government agencies to support this new era focused on compliant, responsible adoption of digital assets.
Modernize Information Reporting beyond digital assets: TaxBit’s enterprise-grade tax compliance solution has grown extensively since launching four years ago. In addition to initial use cases related to digital assets, we increasingly provide modernized information reporting and tax compliance for companies across a diverse set of industries, including the gig economy, payments, luxury brands, traditional finance, BaaS, and more.
Accelerate TaxBit's global expansion: With U.S. regulatory uncertainty, TaxBit is expanding to address high client demand in international markets. By leveraging our technology platforms and global partnerships and ensuring compliance with local regulations, we will expand TaxBit's global footprint, focused on UK, EU, and Brazil.
As we reflect on TaxBit's journey and anticipate the exciting future ahead, we acknowledge our company's inspiring origins and our team's dedication. Through industry-leading SaaS and valuable partnerships with industry leaders, we have established TaxBit as the go-to solution for tax and accounting compliance across the digital economy.
With a strong foundation and team driven by innovation and excellence, we are well-positioned to seize new opportunities and create even greater success in the years to come.
