Cryptocurrencies

TaxBit Raises $100M in Bid to Take Crypto Taxation Software Global

Brothers Austin and Justin Woodward founded TaxBit in 2018.

Cryptocurrency tax automation firm TaxBit raised $100 million in a Series A funding round led by crypto investment fund Paradigm and Tiger Global.

The three-year old startup, which builds tax assistance tools for U.S. crypto exchanges and customers, told CoinDesk it will more than double its 40-odd headcount as it prepares to add even government clients to the list.

TaxBit’s software powers behind-the-scenes number crunching for exchanges in order to give crypto traders a handle on their tax burdens. Going into the 2021 tax season, TaxBit founder Austin Woodward told CoinDesk his firm has already generated over 1 million reports for exchanges like Gemini.

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Gemini founders Tyler and Cameron Winklevoss invested in TaxBit’s Series A, as did PayPal Ventures and CoinBase Ventures. The VC trio led a separate “strategic investment” in TaxBit earlier this year.

The eye-popping raise will allow the historically hush-hush, Utah-based firm to explode into the global crypto tax field, Woodward said. First up is a U.K. debut in the next few months followed by a smattering of other international markets.

Along the way, TaxBit will continue integrating its B2B software across more U.S. exchanges, though Woodward wouldn’t say which ones. 

Woodward even hinted a government partnership is fast approaching, cryptically citing the City of Miami’s bold bitcoin strategy. 

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“The reason for the big funding is because that’s what it takes to go and build an asset, a platform, that can enable an entire asset class. Like, that’s how broad our mission is,” Woodward said.

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