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Crypto tax startup TaxBit raises $130M in funding round, now valued at $1.3B

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Already categorised as a unicorn startup, United States-based cryptocurrency tax software program developer TaxBit now has a valuation of greater than $1.3 billion after a latest funding spherical.

According to a Thursday announcement, IVP and Insight Partners led a $130 Series B funding spherical for TaxBit with participation from Bitcoin bull Anthony “Pomp” Pompliano, Tiger Global, Paradigm, 9Yards Capital, Sapphire Ventures and Madrona Venture Group. The firm stated it deliberate to make use of the funds — which deliver its valuation to $1.33 billion — to scale its tax and accounting choices system in addition to open new workplaces in the United States and the United Kingdom.

The funding comes 5 months after the corporate raised $100 million in a Series A spherical, which it stated could be used to fund its growth into the United Kingdom. This yr, TaxBit launched an workplace in Seattle and plans to supply crypto-related knowledge evaluation and tax calculation help for taxpayers by means of the Internal Revenue Service, or IRS.

TaxBit CEO Austin Woodward spoke on Pomp’s YouTube channel right this moment, saying that the corporate had anticipated extra crypto tax reporting necessities from the U.S. authorities, similar to these in the $1.2 trillion invoice that passed the U.S. Senate this week. According to Woodward, crypto taxes have been “the number one topic debated and discussed,” as several U.S. senators proposed amendments modifying the language regarding crypto brokers in the bill.

Related: IRS will seize your crypto if you can’t pay back taxes

Launched in 2018, TaxBit is designed to automate aspects of crypto tax compliance for enterprises, consumers and governments. The company achieved unicorn status this year — a valuation of at least $1 billion — and has partnered with many firms handling digital assets, including major crypto exchange Gemini.

“We reside in a time the place every thing goes digital, together with conventional property,” said Woodward. “As we have constructed and deployed fashionable tax and accounting software program tailor-made to digital property, it is turn into clear that legacy tax data reporting options are constructed on antiquated expertise that gives a poor consumer expertise.”