Today ZenLedger announced a $6 million Series A funding round led by Bloccelerate VC, bringing cumulative investment to $11.5 million. A high profile investor in the cryptocurrency tax software and analytics firm is Mark Cuban’s Radical Ventures, one of several participants.
With the rapid growth of the digital asset industry, regulatory bodies such as the J5 (Joint Chiefs of Global Tax Enforcement) and the IRS have implemented more stringent reporting measures for cryptocurrency transactions and investments. That’s apart from the new Senate Infrastructure Bill, which aims to extend the reporting even further.
ZenLedger aims to make investing in cryptocurrency easier for users through a digital workflow platform that adheres to IRS and SEC regulations. Its existing solution supports tax filing and provides financial analysis.
The new funding will be used to release a cryptocurrency portfolio management solution that enables investors and traders to track their tax savings and portfolio performance in a real-time dashboard.
By simplifying and automating the tax accounting process, ZenLedger hopes that it can continue to make crypto investment more accessible to a growing network of users.
“I see blockchain, crypto, DeFi, and NFTs all creating tremendous value. The core accounting and reporting infrastructure that ZenLedger provides will be critical to making everyone’s lives easier as they earn, transact, and invest in crypto,” said investor Mark Cuban.
ZenLedger faces competition from startups such as Lukka, a crypto-asset software provider that raised $53 million in March in a Series D round of funding.
Lukka has many products apart from tax, including providing data price feeds to S&P Dow Jones Indices and IHS Markit. Last week it announced it was partnering with State Street on a digital asset fund solution.
Meanwhile, Mark Cuban is doubling down on his interest in blockchain, having just invested in AlchemyNFT last week.
The full list of participants for ZenLedger’s funding round includes G1 VC, Borderless Capital, 4RC, Centrality, BIGG Digital Assets, CoinGecko, and angel investors Jon Staenberg and Darren Lau. Existing investors participating are Vestigo Ventures, Castle Island Ventures, MigraCon Capital, Blackwater Capital, and Karl Muth.