Blockchain Capital led Bitwave’s seed round as VC bets on crypto tax plays pick up steam.
Bitwave, a crypto tax and accounting software provider, has raised $7.25 million in a seed funding round led by Blockchain Capital. Nascent, Nima Capital and Arca also joined in.
The San Francisco-based company, which was founded in 2018, provides services such as tax tracking, bookkeeping and cryptocurrency accounting. According to Pat White, Bitwave’s CEO and co-founder, the platform is currently used by over 30 companies, including mining firms Greenidge Generation, Core Scientific’s Blockcap and Elite Mining.
As crypto goes mainstream, more companies – including firms like AMC Theatres that aren’t crypto companies – are putting their fingers in the blockchain pie. The $2 trillion cryptocurrency market is growing, and with it, regulatory scrutiny and shifting tax reporting guidelines.
There is a growing need for streamlined digital asset management for businesses, which is where companies like Bitwave and one of its larger competitors, TaxBit, come into play.
Bitwave’s White told Reacon the funding round will be used to add staff to the firm’s 10-person team, as well as expand its advertising and outreach operations.
“The next two to three years is all about the Fortune 500 companies,” White told Reacon. “We’re going from the crypto-native companies, power generators and people on the front edge of the curve to publicly-traded customers.” He continued, adding:
“That’s the world we see – a world where CFOs at Fortune 500 companies are getting serious about crypto. To us, that’s really exciting, so we’re positioning ourselves to support that.”