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I sit down with Austin Woodward, CEO & Co-Founder of TaxBit, the leading US tax software provider for crypto and digital assets.
Founded in 2017, TaxBit has now issued tens of millions of tax forms and recently became a unicorn with over $230 million in equity from top investors like IVP, Insight Partners, Tiger Global, Paradigm, and Anthony Pompliano.
In this conversation, Austin and I discuss:
How his passion for crypto and digital assets led him to launch a billion dollar business
“Four years ago I became infatuated with digital assets. At the time I referred to them as cryptocurrency, but now I rarely use the word cryptocurrency because digital assets are so much more encompassing.”
There are four main reasons Austin finds digital assets compelling:
Ability to move things instantaneously from point A to point B. Be it cross-border or domestic payments, crypto presents a real challenge to the likes of Western Union by allowing users to “beam” assets with little to no fees.
Eliminating or compressing the middleman on transaction fees. The traditional financial system requires many hands to touch money as it’s being transferred. Blockchain’s transparent ledger helps reduce these costs and intermediaries.
Tool to fight against inflation in impoverished countries. Austin envisions countries decreasing their dependence to the dollar (or any foreign currency) and is excited for countries that are embracing bitcoin as a currency.
Endless applications. The actual underlying unit of ownership applicable to crypto can be extended to asset categories like equities, real estate, commodities, and everyday assets. In Austin’s mind, this makes crypto property, not cryptocurrency.
Challenges and opportunities of working with family and why it made perfect sense to co-found TaxBit with his brother, Justin.
“My brother, Justin, he's younger and smarter than I am. One of the youngest law grads at University of Chicago ever. And he was working on cryptocurrency tax issues with large Fortune 500s in 2014. So he had very intimate level experience and so it just came together naturally.”
The secret to working with family? Transparency and honesty.
“There are pros and cons associated with starting a business with family. You need to have a really strong relationship and have thick skin, because the last thing you would want is for that to affect any family dynamic. And being a business owner is brutally transparent and honest. You can't box things in and hide them.”
Working with US regulators and Austin’s optimistic vision for the US to become a global hub for crypto.
“I'm really optimistic here and I we work with regulators and the IRS very closely. I think sometimes there's this misconception that regulators are anti-digital assets in the USA, that cannot be further from the truth… I think we're making great strides and I foresee the US being a hub for digital asset adoption, through responsible regulation.”
Lessons and reflections from raising over $200M in less than a year… And a lot more!
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Full interview --> Spotify | Apple
Emerging Fintech Leaders
Three early-stage fintech companies doing amazing things
Not just another budgeting app. Quirk is designed to help you save and spend in ways that match your “money personality,” which they help you discover through an expert-written personality test. From there, users can budget intelligently and grow their financial literacy with in-app educational resources. Use these links to learn more about joining their beta and hiring opportunities!
Co-Founders: Nafeeza Jafferjee and Nikos Melachrinos
Akt.io is jumpstarting the future of money by building a more secure, transparent, and honest global financial ecosystem. Automate your investments, earn daily, and make payments with your assets with our forthcoming app. And now, they’re introducing $AKTIO, the decentralised digital currency for commercial exchange and the rapid settlement of multi-sector, international transactions.
Founder: Gael Itier
PaySika is the neobank for Francophone Africa. Having just raised $350K in pre-seed capital from angel investors across Europe and Africa, the firm will target the region’s large unbanked population (only 25% of adults in DR Congo have a bank account, and 34% in Cameroon, PaySika’s HQ). PaySika sets itself apart by providing neobanking services on top of already existing mobile money accounts and popular messaging apps, like Whatsapp or Facebook Messenger, which will facilitate customer acquisition greatly. The ultimate goal is democratize financial services like credit and digital payments for a population that’s been severely underserved.
Co-Founders: Roger Nengwe and Stezen Bisselou-Nzengue
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Miguel Armaza is Co-Founder & Managing General Partner of Gilgamesh Ventures, a seed-stage investment fund focused on fintech in the Americas. He also hosts and writes the Fintech Leaders podcast and newsletter.
TaxBit CEO/Co-Founder, Austin Woodward – Scaling a Crypto Unicorn, Future of Digital Assets, and why Humility is the Most Important Trait for Founders