Yesterday PayPal-backed cryptocurrency software provider TaxBit announced the completion of a $130 million Series B funding round led by IVP and Insight Partners. This comes after one of its competitors, Bitwave, raised a $7.25 million funding round yesterday.
With the latest funding valuation TaxBit at $1.33 billion, just five months ago, the startup closed its Series A funding round of $100 million.
The digital asset industry is growing rapidly, with cryptocurrency increasingly offered alongside traditional assets. This is prompting regulatory bodies to implement more formal reporting practices across cryptocurrency transactions and investments.
TaxBit’s solutions primarily covers tax reporting and accounting. Its Tax Center Suite allows users to view their real-time tax position in an integrated platform, making crypto investment more user friendly and efficient.
It also announced a new partnership with cryptocurrency exchange FTX US to provide the solution to the exchange’s clients.
The new funding will be used to scale TaxBit’s tax and accounting technology across enterprise, consumer and government sectors. The company also aims to drive international expansion by opening more offices in the US and UK.
“The tokenization of our global financial system is underway, and our current tax, accounting and ERP software infrastructure isn’t equipped to manage this shift,” said Nikhil Sachdev, Managing Partner at Insight Partners, who will join the company as a board observer. “TaxBit has emerged as a leader in the industry and the platform helps everyone from consumers, exchanges and government to enterprises easily manage tax compliance and financial reporting on crypto transactions.”
Meanwhile, TaxBit faces competition from startups such as Lukka, a cryptocurrency software provider that raised $53 million in March in a Series D round of funding. Lukka has many products apart from tax and is partnering with State Street on a digital asset fund solution.
Earlier this month, the Mark Cuban-backed startup ZenLedger also announced a $6 million Series A funding round.
The full list of published participants in TaxBit’s Series B funding round includes Tiger Global, Paradigm, 9Yards Capital, Sapphire Ventures, Madrona Venture Group, and Anthony Pompliano.