TaxBit Raises $130M Series B at $1.33B Valuation to Disrupt Legacy Tax Information Reporting

Our team at TaxBit is thrilled to announce a $130 million Series B funding round at a $1.33 billion valuation!

By: Michelle O'Connor

VP of Brand & Communications

Published on:

Our team at TaxBit is thrilled to announce a $130 million Series B funding round at a $1.33 billion valuation!

The round 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 conjunction with the financing, Tom Loverro, General Partner at IVP, and 2021 Forbes Midas List awardee, has joined TaxBit’s Board of Directors.

TaxBit continues path of exponential growth

This investment comes just five months after we raised a record-breaking $100M Series A. Since that time, a lot has happened for our team! We’ve tripled headcount while launching HQ2 in Seattle, deployed services with the IRS, and entered into partnerships with many leading digital asset platforms.

Additionally, dozens of financial institutions are deploying TaxBit's Tax Center Suite technology. Many of these platforms will be announced over the course of the year as 2021 tax season approaches—stay tuned! Today, we’re excited to announce a partnership with FTX US.

FTX CEO Sam Bankman-Fried commented, "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."

What’s next for TaxBit?

TaxBit will use the funds to scale our multi-channel ecosystem of tax and accounting offerings across enterprise, individual, and government sectors. We plan to double headcount by the end of the year and continue to open new offices in both the US and UK to fuel international expansion.

“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,” said Tom Loverro, General Partner at IVP. “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.”

"TaxBit is pioneering a comprehensive suite of cryptocurrency tax products, and is poised to capitalize on incredibly strong industry and regulatory tailwinds," added Ajay Vashee, General Partner at IVP, who will join the company as a board observer.

Nikhil Sachdev, Managing Partner at Insight Partners, 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.”

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

"We are living in a time where everything is going digital, including traditional assets," said Austin Woodward, TaxBit CEO. "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."

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