Cryptocurrency startup TaxBit, which just opened a new HQ in Seattle, lands $130M at $1.33B valuation

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TaxBit co-founders Justin (left) and Austin Woodward. (TaxBit photo)

TaxBit, a cryptocurrency tax and accounting firm that opened a second headquarters in Seattle this summer, has raised $ 130 million in new funds. The round of funding raises the company’s valuation to $ 1.33 billion.

Founded in 2018 by brothers Austin and Justin Woodward, the company helps consumers, businesses and governments file their tax reporting and accounting for cryptocurrencies.

TaxBit will use the new funding to double its workforce by the end of the year. The company also plans to open new offices in the US and UK.

The funding comes five months after TaxBit raised $ 100 million and partnered with the IRS earlier this year. TaxBit was founded in Salt Lake City but opened its headquarters in Seattle last month. It employs fewer than 10 people in Seattle and hopes to have 40 people in its “HQ2” by the end of the year. TaxBit has a total of around 80 employees.

The final round of funding was led by IVP and Insight Partners. Seattle-based Madrona Venture Group also participated, investing from their second Acceleration Fund, designed for more mature companies across North America.

“TaxBit is our latest investment in an area we have helped shape – smart applications,” Madrona’s John Torrey wrote in a blog post. “Smart apps combine data and machine learning to provide real-time actionable insights into business and consumer applications – and we believe smart apps will disrupt and replace the first generation of cloud apps we know.”

Torrey, a former Qualtrics executive, noted that the TaxBit team includes several former Qualtrics employees. In a way, TaxBit is following in the footsteps of Qualtrics, which was also founded in Utah but opened a co-headquarters in Seattle.