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Big Money in Tax Pain: TaxJar Closes $60M Funding Round

TaxJar
TaxJar Closes $60M Funding Round

There’s big money in offering solutions to painful problems, and one major pain for small online sellers is dealing with online sales tax compliance. TaxJar announced today it has closed a $60 million funding round.

Calls itself the “fastest growing sales tax automation company for eCommerce businesses and developers,” the investment shows how big of a problem the issue is for sellers as states pile on in the wake of the Supreme Court ruling in the Wayfair case last year.

TaxJar will use the funding to hire more employees and accelerate its product development and research as it goes to market with a new offering, TaxJar Plus, for the “mid-market” (presumably that means it’s trying to reach beyond the micro seller). The company noted it had become profitable in 2016.

In a letter to customers letting them know about the funding, TaxJar Vice President Lee Hadsock said the company would be able to do more, faster, for customers.

“We can accommodate the increasing complexity of economic nexus and constantly-changing tax laws quicker. We can provide more tools to help you make confident tax decisions, so you can get back to focusing on your business. We can also continue to be the best resource in sales tax, period.

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“We know what we need to do in order to solve bigger and messier sales tax problems, and now we’ll be able to do that sooner than we thought possible.”

Press release follows:

TaxJar, the fastest growing sales tax automation company for eCommerce businesses and developers, today announced it has closed a $60 million growth equity round of funding from Insight Venture Partners. TaxJar’s most recent funding was a $2 Million Series Seed round led by Rincon Venture Partners and Daher Capital in 2014, which allowed TaxJar to reach profitability in 2016.

This latest round of funding will allow TaxJar to continue to aggressively hire and expand its 100% remote team of nearly 60 in addition to accelerating product development, research, and go-to-market for their new mid-market offering, TaxJar Plus.

“We are thrilled to partner with a proven leader like Insight Venture Partners,” said Mark Faggiano, founder and CEO of TaxJar. “This is a great event for our customers. We’ll have the ability to expand our resources to continue to build the world’s best automated sales tax solution. We’re focused on delivering even more value to the more than 15,000 small business merchants who already trust us with their compliance, and in addition, we’re excited to accelerate growth to meet more complex customer needs with TaxJar Plus.”

Since 2013, TaxJar has been on a mission to make eCommerce easier for everyone. The company provides simple, automated and affordable sales tax solutions for eCommerce business, developers and accountants. TaxJar’s modern technology provides customers with an unparalleled multi-channel sales tax experience, real-time sales tax calculations and saves countless manual hours each month spent on sales tax.

“We see a great opportunity in the compliance technology market,” says Ross Devor, Managing Director at Insight Venture Partners. “TaxJar’s innovative approach and fast-growing customer adoption aligns with our strategy and mission for high-growth software and technology investments. We’re thrilled to be part of their journey moving forward.”

About TaxJar
TaxJar is a leading technology for eCommerce businesses and developers to manage sales tax. As a fully-distributed company, TaxJar was founded to make eCommerce easier for everyone by helping merchants and developers spend less time on sales tax to focus on growing the businesses they love.

TaxJar offers TaxJar Reports, multi-channel reporting feature that organizes sales tax data into return-ready state reports; TaxJar AutoFile, a service that automatically files sales tax returns in any US state; and SmartCalcs API, a modern, robust sales tax calculations API for developers.

After the Supreme Court Decision of South Dakota v. Wayfair, TaxJar introduced the only automated and free tool for businesses to instantly view where they may have economic nexus with the TaxJar Sales & Transactions Checker.

The company’s technology-first and customer-focused approach means they are easy to work with from transparent simple pricing to amazing customer service.

To learn more, visit TaxJar.com or follow us on Twitter @taxjar.

About Insight Venture Partners

Insight Venture Partners is a leading global venture capital and private equity firm investing in high-growth technology and software companies that are driving transformative change in their industries. Founded in 1995, Insight currently has over $20 billion of assets under management and has cumulatively invested in more than 300 companies worldwide. Our mission is to find, fund, and work successfully with visionary executives, providing them with practical, hands-on growth expertise to foster long-term success. Across our people and our portfolio, we encourage a culture around a core belief: growth equals opportunity.

For more information on Insight and all its investments, visit www.insightpartners.com or follow us on Twitter @insightpartners.

SOURCE: TaxJar Press Release

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Ina Steiner
Ina Steiner
Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. She's a widely cited authority on marketplace selling and is author of "Turn eBay Data Into Dollars" (McGraw-Hill 2006). Her blog was featured in the book, "Blogging Heroes" (Wiley 2008). Follow her on Twitter at @ecommercebytes and send news tips to ina@ecommercebytes.com.