Seattle fintech startup ZenLedger.io, which provides tax-analysis services to the fast-growing cryptocurrency market, has attracted the interest of the venture capital world and raised $3.4 million in seed capital.
Cambridge, Massachusetts-based Vestigo Ventures, which invests in early stage financial-technology companies, led the investment round, with participation from four other investment groups ― Gumi Cryptos, Castle Island Ventures, Unblock Ventures, and Migration Capital.
Cryptocurrencies, such as Bitcoin, Ripple and Dogecoin, are digital currencies that operate independent of a central bank and utilize high-level encryption techniques, such as blockchain ledgers, to record and validate transactions. ZenLedger provides automated tools to help investors and accountants manage their portfolios, generate profit and loss statements, file their taxes and avoid IRS audits.
“We started ZenLedger because we knew we could help crypto investors and provide a valuable tax service while also helping the overall crypto and blockchain community to flourish by staying on the right side of the law,” says Pat Larsen, chief executive officer of ZenLedger: “We set out to have great customer service, a fast and easy customer experience, and a professional grade product, and I believe we’ve done that.”
ZenLedger, incorporated in April 2018, employs 15 and has provided cryptocurrency investors and accountants with tax services related to more than $1 billion worth of crypto transactions to date, according to the company.