I am excited to announce that Madrona Venture Group has joined the $130 million Series B round for TaxBit. TaxBit is our newest investment in an area we helped define – Intelligent Applications. Intelligent Apps combine data and machine learning to provide real-time, actionable insight into business and consumer applications – and we believe Intelligent Apps will disrupt and replace the 1st generation of cloud applications we’ve come to know. TaxBit, based in Utah with a new HQ2 in Seattle, is also Madrona’s first investment in the Beehive State, exemplifying the North American reach of our Acceleration Fund 2.
With the emergence of cryptocurrencies, technology is transforming global finance. In only the 13th year after the launch of bitcoin, the number of cryptocurrencies has more than doubled over the last year to 10K and cryptocurrencies have become a nearly $2T asset class (measured in market cap). But, tax compliance for cryptocurrencies (or really for anything tokenized) has not kept pace with the explosion in cryptocurrency transaction volume and value. And governments have taken notice. Crypto was a controversial point in the infrastructure bill, but its inclusion indicates a future of crypto as a part of the economy. Cowen’s Jaret Sieberg said “The tax reporting language is one of the clearest indications that Washington is prepared to accept crypto as a permanent part of the financial ecosystem.”
Enter TaxBit. TaxBit provides tax and accounting solutions for the digital asset economy to enterprise, government, and consumer customers. While TaxBit is offering cryptocurrency tax compliance to start, the company is leveraging the realtime nature of its data platform and the breadth of its ecosystem to provide intelligent applications for tax optimization, wealth management, spend management, and accounting.
We are excited to work with co-founders and brothers, Austin and Justin Woodward, and a leadership team that includes several former colleagues of mine that helped scale Qualtrics to exit at what was, at the time, the largest sale of a private software company in history.
Welcome to the Madrona family, Austin and team!