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Now with unicorn status, TaxBit intends to use funds received from the Series B funding to expand physical operations into the UK and the US.
TaxBit raised $130 million in a Series B funding round on Thursday, increasing the company’s valuation to $1.33 billion. The funding round, which pushed TaxBit to unicorn status, was led by IVP and Insight Partners. Other players were Anthony ’Pomp’ Pompliano, 9Yards Capital, Tiger Global, Paradigm, Sapphire Ventures, and Madrona Venture Group. This brings the total value of funds raised by the company since inception to $230 million.
According to TaxBit, the company intends to use some of the funds to open new offices in the US and the UK. In addition to this, it also intends to scale the array of offerings on its tax and account system.
TaxBit, Inc. launched in 2018 and provides reporting software to the Internal Revenue Service, in addition to several other data-driven enterprises, consumers, and governments. Its application automates many aspects of crypto tax compliance and connects digital assets transactions across exchanges.
The funding round comes just five months after the firm raised $100 million in a Series A – its first-ever funding of any type. Many of the venture capitalists from that earlier funding round also participated in the latest one. Notable among them were Tiger Global and Paradigm. Others were PayPal Ventures, CoinBase Ventures as well as Gemini founders Tyler and Cameron Winklevoss.
TaxBit Outside of the Series B
TaxBit is expanding fast as it issued over two million tax forms in 2020 and may issue more than twice that amount this year. In addition, the company announced a partnership with crypto platform FTX.US. TaxBit also partnered with major digital assets exchanges Gemini, BlockFi, and Coinbase.
The firm is exploring other tax reporting opportunities in addition to its primary service of crypto tax software reporting. Company CEO, Austin Woodward says the platform now supports equities and commodities and will continue to invest in product lines with high visibility. Three target markets for such product lines are the United Kingdom, European Union, and Canada. Furthermore, the crypto software firm now has a second home base in Seattle and boasts of 120 employees.
According to Woodward, “This is an opportunity that expands well beyond cryptocurrency”. He further emphasized that this is an age where everything, including traditional assets, are going digital.
TaxBit is looking to achieve all this amid repeated calls for proper regulation in the crypto industry. However, Woodward seems unfazed by all the uncertainty. In fact, he claims his firm anticipated many of the details included in the crypto bill that was before the US Senate this week. The major talking point in that bill was the additional crypto tax reporting requirements which the CEO says were “the number one topic debated and discussed.” He discussed this at length on Anthony’ Pomp’ Pompliano’s YouTube channel.
In addition to being CEO, Austin Woodward is also co-founder with his brother Justin Woodward.