TaxBit, which offers cryptocurrency tax automation software targeted for crypto users, exchanges, and merchants, raised $5 million in Seed funding.
Investors include TTV Capital, Dragonfly Capital Partners, Collaborative Fund, Winklevoss Capital, Valar Ventures, Global Founders Capital, Table Management, and Album VC.
The company plans to use the funds raised to enhance its products further and accelerate customer growth, both in the United States and internationally in regions including Canada, the UK, and Australia.
TaxBit, founded by CPAs, tax attorneys, and software developers, has a mission to enable widespread cryptocurrency adoption by automating tax compliance’s regulatory hurdle.
Austin Woodward, CEO and Founder of TaxBit, said, “In such a highly regulated space with so many complexities, TaxBit is needed to remove the burden of proper cryptocurrency tax reporting from the shoulders of crypto users, exchanges, and merchants.”
He continues, “TaxBit’s software and tax experts will accurately handle all of the back-end complexities, while providing users with an intuitive, user-friendly experience on the front-end.”
Salt Lake City-based TaxBit launched its consumer product in January 2019 and has since helped thousands of cryptocurrency users automate their taxes. The company’s consumer product is often referred to as the “TurboTax of crypto,” as users can easily use TaxBit’s do-it-yourself platform to produce all of their required crypto tax forms in minutes.
In 2019, TaxBit also launched its enterprise tax center suite that is now being deployed by cryptocurrency exchanges and merchants. Like the tax centers provided by equity trading platforms, TaxBit’s tax center suite facilitates tax compliance for enterprises and their users through a technology-driven platform.