TaxJar said Wednesday that it has secured $600,000 in seed funding. Investors included Dan Rose, vice president of partnerships at Facebook; Harris Barton, principal at H Barton Asset Management; and Roy Rubin, co-founder and COO at Magento. TarJar is a provider of tax management services for online retailers.
SAN DIEGO, CA – TaxJar, the leading provider of tax management services for online retailers, today announced it has received $600,000 in strategic capital investment from a number of top tech industry angels. The investment round, coming from executives at numerous technology companies including eBay, Facebook, Intuit, Magento, ShipWire and others, is the company’s first outside funding to date.
TaxJar is the only provider of sales tax automation for Amazon, eBay, Shopify, PayPal, BigCommerce, Etsy sellers. The cloud-based solution serves a broad range of online sellers as customers, from smaller merchants selling under $100K a year online on a single site or marketplace, to mid-market merchants selling $10′s of millions per year online across multi-channels and collecting millions each year in sales tax. The early-stage startup’s goal is to simplify tax filing for online businesses with TaxJar and CPA’s with TaxJar Pro.
Among the many angels participating in the seed round are Dan Rose, vice president of partnerships at Facebook; Harris Barton, principal at H Barton Asset Management; Roy Rubin, and co-founder and COO at Magento. Funds raised during the round will be used by TaxJar to further develop the company’s efforts in customer acquisition and product development.
“The reaction TaxJar is getting to its services is exceeding what we expected at this stage,” said Mark Faggiano, CEO and co-founder of TaxJar. “We’re solving what is perhaps the biggest administrative and compliance burden for small businesses—the headaches of sales tax. As we take the next important steps in our company’s growth, we wanted to be very specific in choosing only strategic investors. We actually ended up being oversubscribed and as a result, raised our funding limit in order to bring in key investors.
“When I met the TaxJar team, I saw how passionate they are in helping e-commerce merchants succeed. I also learned about their past successes with this customer base. Immediately I wanted to get involved,” said Barton. “The issues surrounding sales tax collection for online merchants, as well as the number of merchants themselves, will only grow in the coming years. TaxJar is placing itself at the center of this opportunity.”
TaxJar intends to use its new capital funding to test and implement several new customer acquisition methods. It also plans to prioritize and implement a number of product features, all driven by customer feedback. The features are expected to include a tax rate lookup service, sales tax return e-filing, and new data sources that support additional online sellers.
TaxJar was founded by small business experts with a simple mission: helping online sellers simplify the hassles of tracking and filing sales tax so they can focus on growing their businesses rather than dealing with compliance issues. The customer-driven company has a successful history of developing tax and accounting systems used by tens of thousands of small businesses to solve common operational problems. To learn more, visit www.taxjar.com.