SAN JOSE, Calif.—PayPal Ventures has invested in cryptocurrency tax software TaxBit.
PayPal Ventures is the venture capital arm of PayPal that invests in areas the company says are of strategic interest.
TaxBit’s software is used by thousands of everyday digital currency users, in addition to cryptocurrency exchanges and merchants, PayPal said.
Among other digital currency tracking and reporting features, the software enables businesses to issue 1099 to merchants, vendors, and other entities who require this IRS form to complete their yearly tax returns, eSellerCafe explained.
The company plans to use the investment to expand its business with additional staff and grow internationally. “Going international is a huge piece of the puzzle,” said Austin Woodward, founder and CEO of TaxBit, told eSellerCafe.
TaxBit also received funding from Coinbase Ventures, the investment division of the popular cryptocurrency exchange and additional funding from existing investor Winklevoss Capital, a private investment firm that focuses on investments in digital currency startups and whose founders had a role in launching Facebook, eSellerCafe noted.