Encrypted Tax Software Company TaxBit Completes $130M Series B Funding Led by Insight Partners and IVP

This article comes fromThe Block, original author: Yogita Khatri

Odaily Translator | Nian Yin Si Tang

Summary:

This article comes from

, original author: Yogita Khatri

Odaily Translator | Nian Yin Si Tang

secondary title

Summary:

- Encrypted tax and accounting software company TaxBit completed a $130 million Series B round of financing and successfully entered the ranks of unicorns.

- TaxBit CEO Austin Woodward said TaxBit is looking to grow its team and expand globally.TaxBit, a U.S.-based encryption tax software provider, has completed a $130 million Series B round of financing with a post-money valuation of $1.33 billion, making it the latest unicorn in the crypto space.The financing was co-led by venture capital firm Insight Partners and IVP. Insight Partners is an investor in companies such as FTX, ZenGo and TradingView. IVP is a backer of companies like Coinbase, Robinhood, and Twitter. As part of the transaction, IVP general partner Tom Loverro has joined TaxBit's board of directors, while IVP general partner Ajay Vashee and Insight Partners managing partner Nikhil Sachdev have joined TaxBit as board observers.

Meanwhile, Tiger Global, Paradigm, 9Yards Capital, Sapphire Ventures, Madrona Venture Group and Anthony Pompliano also participated in the round.

According to previous news, TaxBit completed a US$5 million seed round of financing in January 2020, with participation from Winklevoss Capital and Dragonfly Capital. One year later, TaxBit completed its strategic investment in January 2021, with the participation of PayPal Venture Capital, Coinbase Ventures and Winklevoss Capital.

In March of this year,

TaxBit Announces $100 Million Series A Funding, Paradigm and Tiger Global led the round. The venture capital department of payment giant PayPal, Coinbase Ventures, Winklevoss Capital and other institutions, and investors such as Bill Ackman and Qualtrics co-founder Ryan Smith participated in the investment.Asked why it was raising money again so quickly, TaxBit co-founder and CEO Austin Woodward told The Block that the company was already profitable, but investors were “overseeing capital injections” given TaxBit’s growing business. As a result, Woodward said, the company decided to raise more capital, attract high-profile investors to its board, and expand the business further.

TaxBit's software helps automate tax reporting. Its customers include individual crypto users as well as businesses and governments. FTX.US is the latest crypto exchange to partner with TaxBit. Woodward said "dozens" of exchanges and financial institutions are using TaxBit's software. While its solutions are currently primarily available to US customers, Woodward said the company will "soon" expand in the UK, followed by Canada and Europe.

To achieve this, TaxBit is hiring across functions and hopes to "at least double" its current team of 80, Woodward said.