Seattle-based ZenLedger, which provides tax ledger software for CPAs and cryptocurrency investors, secured a massive, $1.5 million round of venture capital funding from VC firm Vestigo Ventures to further develop its blockchain-based tax accounting software.
The $1.5 million investment will enable ZenLedger to expedite product development as well as extend its marketing efforts to both CPAs and individual investors.
The financing round also included Castle Island Ventures.
What is ZenLedger?
Launched in January to fill a void in the market, ZenLedger is a tax software for cryptocurrency investors that allows users to import their cryptocurrency transactions, calculate gains and income and autofill tax forms used to report capital gains like the 8949 and Schedule D.
The company also offers a package tailored specifically to CPAs, which can be utilized to help clients who invest in cryptocurrency file their tax returns and manage their investment portfolios.
ZenLedger leadership expressed excitement about the partnership, with CEO Pat Larson stating:
“We’re incredibly happy to have great partners in Vestigo Ventures and Castle Island Ventures. Their founders all have deep experience in fintech so we feel it’s a perfect match. They understand that we are building vital infrastructure to help blockchain flourish. As crypto investors, if we tolerate scams and don’t pay taxes, it makes crypto a target for misguided government regulation. We are all in this together, building everything a new technology, a new asset class and a new economy needs.”
“We’re also happy to build a venture-backed, blockchain startup in Seattle. We want to help put Seattle on the map for early-stage companies too, not just the global tech giants.”
Why Vestigio Invested
In the Monday announcement, Mark Casady, general partner at Vestigo, stated that he was impressed by the startup’s ability to solve a problem in the marketplace, which has grown with the proliferation of cryptocurrencies and cryptocurrency investors. He said:
“What is most interesting to our team is ZenLedger’s ability to help accountants become more competitive and provide additional value to their clients as cryptocurrencies continue to gain in popularity among retail investors. Under the leadership of Pat Larsen, CEO, and Bryan Starbuck, CTO, we are confident ZenLedger boasts the right mix of large technology company and entrepreneurial startup experience.”
Vestigio prides itself on finding and backing innovators in the realm of financial technology, stating on its website that they “keep our eyes on the horizon for the brightest opportunities for disruptive FinTech innovation.”