Bumping the company’s total funding up to $27 million, cryptocurrency tax services firm ZenLedger announced on Wednesday that it raised $15 million in Series B funding.
CEO of ZenLedger, Pat Larsen called the five year old startup’s “best tax season ever”. ZenLedger has seen its sales grow five-fold and is now targetting new markets in an effort to expand further still.
ZenLedger helps token-holders navigate the ambiguities of crypto taxes by intergrating into their trading data from wallets, exchanges and NFTs. It has plenty of competition in that space; just last August, CoinTracker raised $100 million ahead of tax season while TaxBit raised $130 million.
There are currently 50,000 users of ZenLedger according to Larsen. It is now in midst of planning on launching new products tailored for prospects from the Registered Investment Advisor and Certified Public Accountant world.
ZenLedger also intend to use the funding as they plan to expand its team. In April, it hired a new Chief Technology officer in Daniel Escobar, a Bitpay alum, along with three other c-suite executives.
“Some investors can be pretty fickle, but we didn’t have low conviction investors. We weren’t the super-hot deal where people just wanted to get in because Tiger Global is here or something,” Larsen said. “[Our investors] weren’t here just because other people were in. They were in because they really liked the team and the business. We weren’t any individual token that had some rug pull that just explodes the whole value proposition…nothing changed materially about the business.”
According to a press release, the round was led by ParaFi Capital, with contributions from Bloccelerate VC, King River Capital, G1 Ventures, Main Street Investment, Three Point Capital, Shorooq Partners, VaynerFund, Blizzard Fund and AngelList Quant Fund.