Several well-known venture capital funds and private investors provided financial support to the startup CoinTracker. In total, within the seeding round of financing, the company raised $ 1.5 million, according to CoinDesk.
The financing was led by Initialized Capital, which was also one of the earliest investors of Coinbase. The project was also supported by the Y Combinator and the founder of Protocol Labs and FileCoin, Juan Benet. Another well-known investor of the project was the creator of the Gmail mail service Paul Buchheit.
I think one of things that appeals to some of the folks that are in the round is that we're taking this not well understood and confusing and complicated space and just making it super easy so that anyone interested in the space could get involved.
According to him, the idea of creating CoinTracker was born after he and his former colleague on Google John Lerner began to feel more and more sad with the available opportunities to track their crypto-investment. As Lodha confessed, for lack of suitable programs, at first they even used ordinary Excel spreadsheets to which all transactions were manually entered.
That works fine for the first 10 trades or when you have a very simple transaction history, but, over time, you start doing more trades or start having more exchanges or more coins - it gets very out of control.
As a result, after a series of experiments, not all of which were successful, the CoinTracker team came in a simple interface that combines all the crypto assets and transaction history of the trader and is synchronized with exchanges and wallet.
Also, developers have added a feature that allows traders to keep tax records - the new tool parses all transactions, then uploads them to the already filled in form 8949 for the US Internal Revenue Service.