Main Highlights
- Blockpit, a pioneer in the development of tax reporting for crypto assets, announced that it has raised about €8.4 million in Series A funding.
- It developed Cryptotax software to automate the calculation of taxable earnings from trading crypto assets, as well as other crypto traders’ and investors’ activities.
- Intends to use the funds to boost the software’s growth and international expansion.
- Demand for the program has risen dramatically as a result of the forthcoming implementation of the EU DAC-8 legislation.
Blockpit, a pioneer in the development of tax reporting for crypto assets, announced that it has raised about €8.4 million in Series A funding. The capital increase comes from five well-known fintech and blockchain investors from around the world. The funds will be utilized to expand abroad and further improve Cryptotax, an in-house tax reporting software that is periodically audited by a Big Four auditing company.
Blockpit’s Software
Blockpit, which was founded in 2017, developed its Cryptotax software to automate the calculation of taxable earnings from trading crypto assets, as well as other crypto traders’ and investors’ activities.
Data is imported in real-time from popular cryptocurrency exchanges and wallets, standardized, and then combined into a country-specific report that shows taxable profits and other relevant information.
It was recently implemented in Spain and France, bringing the audited tax reporting to six countries. According to Blockpit, demand for the program has risen dramatically as a result of the imminent EU DAC-8 directive, as well as the recent sharp upswing in crypto assets.
In the current Series A investment round, five new and one existing investor participated. MiddleGame Ventures (MGV), the lead investor, is a seasoned fintech fund focused on capital markets, asset management, and open finance.
Force over Mass Capital, Tioga Capital (Casa), and Avaloq Ventures are among the new shareholders, claiming to have significant expertise in the blockchain, FinTech, and traditional core banking sectors and promising to support the firm in more ways than one.
Venionaire, an existing seed investor, joined in the round on behalf of the European Super Angels Club and expanded its stake via its Luxembourg fund, EXF Alpha S.C.S.
Florian Wimmer, the CEO and co-founder expresses his gratitude to the new shareholders: “In addition to the financial boost, the investors’ knowledge, as well as their international network, will result in new market access and several potentials for commercial partnerships in a variety of fields. This will significantly speed up the development of our products as well as our growth into new countries.”
MGV’s Managing Join, Pascal Bouvier, said of the investment, “We are happy to partner with Blockpit.” We are optimistic about the future of digital assets. Tax and accounting factors will become increasingly crucial to master as these become more widely accepted by investors of all types. The firm is at the crossroads of these developments, with a promising future ahead of it.”
Utilization of Funds
Blockpit intends to use the funds to boost Cryptotax’s growth and international expansion. The software was developed by it to automate the calculation of taxable earnings from trading crypto assets such as Bitcoin and Ethereum, as well as other crypto traders’ and investors’ activities such as staking, DeFi, lending, mining, and margin trading.
The audited tax reports are now accessible in six countries (AT/DE/FR/CH/ES/US), thanks to Cryptotax’s expansion into Spain and France. According to Blockpit, demand for the program has risen dramatically as a result of the forthcoming implementation of the EU DAC-8 legislation, as well as the recent strong boom in crypto assets.
CEO and co-founder Florian Wimmer’s Verdicts
“In addition to the monetary boost, the knowledge, as well as the international network of the investors in many areas, will result in new market access and countless chances for commercial partnerships,” says the CEO and co-founder Florian Wimmer. This will significantly speed up the development of our products as well as our entry into new markets.”
