We’re thrilled to be leading a $4m seed round in Sydney-based CryptoTaxCalculator, a SaaS tool that…well…it’s pretty self-explanatory.

The explosion of cryptocurrency ownership and missed tax revenue

There’s been an explosion in cryptocurrency ownership. There were over 200 million crypto users globally as at June 2021, a four-fold increase in the previous 12 months. In Australia, ~15%of the adult population people hold a cryptocurrency.

Governments are taking notice. The USA’s landmark US$3.5 trillion infrastructure bill proposed in August 2021 included a clause requiring cryptocurrency “brokers” to report user transactions to the US tax authority. It’s estimated that this could generate more than US$30bn in annual tax revenue (albeit, in our view, in an unworkable way).

Complying with your crypto tax obligations can be complicated, confusing and time-consuming. Transactions often occur across centralised and decentralised exchanges and different assets (including fungible tokens, non-fungible tokens (NFTs), yield generating assets and more). There’s a clear, global need for a simple and accurate crypto tax tool.

The CryptoTaxCalculator team has built a simple and intuitive tool that uses both on-chain and centralised exchange data to save users time and money. The on-chain piece is critical – there are many alternative solutions, but the majority only plug into centralised exchange (e.g. Coinbase, Binance) data feeds when we tested them. This is only a partial solution to a crypto user’s problem.

CryptoTaxCalculator is trusted by individuals, exchanges and accountants alike. The team has a unique combination of blockchain and taxation expertise and the product delivers accurate and reliable tax estimates for its customers. We were blown away by the company’s staggering revenue growth – +1700% in 2021 – showing clear demand and product-market fit.  

Deep domain insight and founder-market fit

Tracking on-chain transactions is no easy task. It requires deep domain knowledge. Luckily, before CryptoTaxCalculator, Shane and Tim had worked on building other Web3/crypto products, including a decentralised exchange. These experiences made them realise the pressing need for an accurate tax calculator ahead of the market emerging. Founder-market fit was as evident as the product-market fit.

Shane and Tim have since spent 3 years building one of the most robust platforms in the world. It’s scalable across blockchains and geographically agnostic. Shane and Tim have a global mindset and unreasonably large goals - we’re excited to support them in their rapid, global expansion.