Crypto Tax Accounting Firm TaxBit Receives Strategic Investment from Haun Ventures
Nicholas Otieno May 18, 2022 10:30
TaxBit plans to use the new investments to boost its tax and accounting infrastructure.
TaxBit, a Salt Lake City, Utah-based provider of crypto tax and accounting software, announced on Tuesday that it has received a new investment from Haun Ventures – a new venture fund designed to help founders build the next generation of the internet.
The strategic investment will allow TaxBit to further accelerate its leading tax and accounting platform and bring additional solutions to the crypto market, helping clients and businesses report and pay crypto taxes.
This is one of the first investments by Haun Ventures, a venture capital fund recently founded by Katie Haun.
Ms. Haun co-led Andreessen Horowitz’s crypto arm in the past, but announced her departure in December last year. In March, Haun launched her venture capital firm, Haun Ventures, which is dedicated to backing crypto startups. The venture capital company was launched with $1.5 billion in capital across two funds — a $500 million early-stage fund and a $1 billion “acceleration” fund.
Besides providing investments to TaxBit, Haun Ventures stated that it has selected a world-class team of crypto-native experts and veteran policy and strategy operators who will collaborate with TaxBit to tell key audiences about how the tax and accounting infrastructure facilitates the growth of the crypto economy.
Katie Haun, the founder of Haun Ventures, talked about the partnership and said: "The web3 ecosystem has grown dramatically since I entered the space and yet we are still in early days. While the crypto economy will continue to unfold in cycles, there is now broad acceptance that this industry is here to stay. TaxBit provides the core infrastructure that is required for the crypto economy to grow and reach its full potential. In addition to the vital role the product plays in the broader ecosystem, the team at TaxBit is best-in-class which is why we're proud to formally back the company and partner with them over the long term."
Austin Woodward, TaxBit Founder and CEO, also commented on the development and stated: "The Haun Ventures team shares TaxBit's vision of working with regulators to propel responsible regulation that enables digital asset adoption at scale. TaxBit's compliance infrastructure is a critical component to the Web3 ecosystem. We have a deep respect for the Haun Ventures team and look forward to working together in carrying out our shared vision."
Navigating Crypto Tax Reporting
In August last year, TaxBit raised $130 million in a Series B funding round co-led by IVP and Insight Partners. Other investors, including Tiger Global, Paradigm, 9Yards Capital, Sapphire Ventures, Madrona Venture Group and Anthony Pompliano, also participated in the funding round.
The funding came a few months after TaxBit raised a $100 million Series A in March last year. The latest financing officially made TaxBit a unicorn, with a valuation of $1.33 billion.
The digital economy’s need for tax and accounting software is rising in the industry as regulators require more formal reporting practices. As a result, TaxBit has witnessed impressive growth. In 2020, the firm issued over two million tax forms.
Since the last funding raise, TaxBit has tripled its number of employees to about 100 people. The company has also established an office in Seattle, deployed services with the IRS, and created partnerships with a number of digital asset platforms including Coinbase, BlockFi and Gemini.
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