Crypto-focused tax compliance company TaxBit has secured $5 million in a seed funding round that attracted investors including Winklevoss Capital.
TaxBit, says it plans to use the new capital to improve its software products internationally. The Utah-based company says in addition to growing its customer base in its home US market, it also wants to focus on Canada, the United Kingdom and Australia.
Since launching in January 2019, TaxBit’s crypto tax automation product, that was designed by a team of industry experts including accountants and tax lawyers, has already attracted thousands of cryptocurrency users, including individuals, exchanges and merchants.
TaxBit claims to support more than 2,500 cryptocurrencies and includes API integrations and tax optimisation tools.
In addition to Winklevoss Capital, TaxBit’s seed round also attracted investment from Album VC, Collaborative Fund, Dragonfly Capital Partners, Global Founders Capital, Table Management, TTV Capital and others.
Commenting on the round Sean Banks, Partner at TTV Capital, said:
“For cryptocurrency to proliferate further, an ecosystem of compliance tools must be created. We are very impressed with the TaxBit team and the platform they are building. This technology is fundamental to the adoption of cryptocurrency, as it enables the industry to progress while being compliant with tax regulations worldwide.”