Crypto tax software developer CoinTracker raised $100 million from venture backers, entering growth mode just as the 2022 tax season is heating up.
Now valued at $1.3 billion, 40-person CoinTracker – which last raised $1.5 million in a 2018 seed round – plans to scale its global tech support and integrate with a universe of crypto companies, CEO Jon Lerner said.
It’s also bulking up on high-ranking talent, sniping Uber’s Vice President of Engineering Gaurav Garg as the new Head of Engineering, and Zack Reneau-Wedeen, Robinhood Crypto’s Head of Product, for Product Lead.
CoinTracker’s partnership wheels are churning, too. On Monday CoinTracker announced an exclusive deal with Coinbase’s expanded “tax center” that assists exchange users in preparing their crypto taxes.
“It’s trying to get ahead of the problem, which is very important for exchanges to do, especially with this infrastructure bill,” Lerner said, referring to expanded reporting requirements set to come online in 2023.
“Every exchange will be reporting their users’ capital gains to the IRS and we expect the same thing to play out in other countries as well,” he said.
Getting tax season 2021 right will be less important for the crypto crowd. The Internal Revenue Service (IRS) is paying increasing attention after last year’s massive spikes in everything from coin prices to NFTs. Every sale, swap and wrap is taxable as capital gains.
CoinTracker is hardly the only crypto tax company-turned-unicorn. TaxBit, which works directly with the IRS, crossed that mark last August.
Accel led CoinTracker’s series A with reups from General Catalyst, Initialized Capital, Y Combinator Continuity, 776 Ventures, Coinbase Ventures, Intuit Ventures and Kraken Ventures, a press release said.