Austria’s Blockpit raises €8.4M to bring the necessary transparency to a blockchain-based financial market; here’s how

Austria-based Blockpit is a company that helps in the development of legally compliant and audited tax reports for the treatment of crypto assets. Today, the company has announced that it has raised $10M (€8.4M) in a Series A funding which is led by MiddleGame Ventures, along with participation from Fabric Ventures, Force over Mass Capital, Tioga Capital, Avaloq Ventures and existing investor Venionaire. 

The capital increase is intended to further develop Cryptotax, a tax reporting software developed in-house and regularly audited by a Big Four auditing firm. Another goal of the investment is to make the software available in additional countries, the press statement read.

Fund Utilisation

With the proceeds, Blockpit plans to accelerate the growth and international expansion of Cryptotax, a tax reporting software developed in-house.

Blockpit created Cryptotax software to provide the automated calculation of taxable profits from trading crypto assets such as Bitcoin and Ethereum and from other activities of crypto traders and investors such as income from staking, DeFi, lending, mining, and margin trading. 

Cryptotax has increased its presence in Spain and France, making the audited tax reports available across six countries (AT/DE/FR/CH/ES/US). According to Blockpit, demand for the software has increased heavily due to the upcoming introduction of the EU DAC-8 directive coupled with the strong upswing of crypto assets in the past months.

Blockpit CEO and co-founder Florian Wimmer says, “In addition to the monetary boost, the expertise as well as international network of the investors in various areas will result in new market access and numerous opportunities for commercial partnerships. This will massively accelerate the further development of our products as well as our expansion to new countries”.

The Beginning of Blockpit

Founded in 2017 in Austria, Blockpit develops financial compliance solutions for portfolio management and tax reporting for assets based on blockchain technology. The company claims to be giving advantage to both individuals and corporations who benefit from tax compliance solutions that are permanently audited by the firm. Currently, Blockpit offers its tax reporting services in Spain, France, Germany, Switzerland, Austria and the United States of America.

Details About Investors

This Series A funding round saw participation from five new and one existing investor. It was led by MiddleGame Ventures along with participation from Fabric Ventures, Force over Mass Capital, Tioga Capital, Avaloq Ventures and existing investor Venionaire.

MiddleGame Ventures (MGV), a fintech fund that is on an investment spree, is currently investing in the capital markets, asset management and open finance space. The MGV partners previously invested in early-stage startups such as Ripple, Tandem Bank, Simplesurance, CoverHound, DriveWealth and CompareAsia (now Hyphen Group) over the past decade.

Fabric Ventures also participated in the funding round, and it has stakes in the recently listed crypto trading platform Coinbase, the multichain protocol Polkadot (DOT), conceived by Ethereum founder Gavin Wood, and the blockchain NFT games Sorare and Axie Infinity. 

Meanwhile, the funding round also saw participation from new shareholders which include Force over Mass Capital, Tioga Capital (Casa), and Avaloq Ventures, who claim to possess strong backgrounds in the blockchain, FinTech and traditional core banking sectors and will support Blockpit more than just financially. The existing seed investor Venionaire – on behalf of the European Super Angels Club also participated in the round and also increased its stake via its Luxembourg fund, EXF Alpha S.C.S.