TaxBit secures investment from In-Q-Tel

TaxBit, a maker of enterprise software for tax and accounting compliance functions, has received backing from the intelligence community’s venture capital investment arm to accelerate the development and delivery of the company’s products.

In-Q-Tel will work with TaxBit to explore potential use cases for further government and commercial application amid their shared anticipation of growing demand for more scalable digital asset compliance solutions.

Terms of the transaction announced Thursday were not disclosed, but In-Q-Tel will also support TaxBit's work to add more functionality into the core product. Tax filing, audit, asset seizure and financial reporting are among the uses TaxBit is exploring.

Some examples of those features include so-called GAAP accounting, which is considered the default standard for U.S.-headquartered companies.

TaxBit is also iterating its software to help users fulfill other standards set out by the Financial Accounting Standards Board for U.S.-headquartered companies, plus the International Financial Reporting Standards for businesses with headquarters in overseas locations.

"Everything we do aims to secure regulatory trust while enabling compliant digital asset innovation for the global economy," TaxBit's chief executive Lindsey Argalas said in a release.

"We see an emerging need from the public sector and enterprises to comply in using crypto and digital assets," added Rita Waite, principal for investments at In-Q-Tel.

TaxBit has secured at least $235 million in investments since its 20187 founding from the likes of Ribbit, IVP, Paradigm and PayPal Ventures.