The blockchain ecosystem is beginning to capture the attention of venture capital around the world. The blockchain is now home to a wide range of highly disruptive platforms that are revolutionizing the way in which both informational and value are disseminated.
One of the most important milestones in the near future of blockchain technology is regulatory compliance. Regulatory bodies around the world are currently working to establish frameworks that govern the cryptocurrency industry, and with these frameworks comes taxation.
Accounting, auditing, and taxation are complex processes even with long-established legacy systems in the current financial paradigm, so when the blockchain is added in, it can become a headache. A new startup that has collected almost $8 million in venture capital, however, is aiming to create the next generation of accounting, auditing, and tax software for the blockchain and cryptocurrency industry.
Libra is focused on delivering real-time enterprise applications that are able to optimize and automate the many different processes required as part of the tax system, including reporting, compliance, and control.
In a recent series A round of funding, Libra has captured $7.8 million from a range of investors that include Liberty City Ventures, XBTO, Boost VC, and Lee Linden. Libra plans to use the capital in order to continue the development of the Libra Enterprise platform, as well as the development and release of a variety of different applications and data services.
What is Libra?
Libra was founded in 2014, which was the same year in which the US Internal Revenue Service issued guidance stating that cryptocurrencies would be treated in a similar manner to other kinds of taxable property.
Libra first began with the release of their LibraTaxa accounting software, which was one of the first cryptocurrency-specific tax accounting tools available in the world. The Libra platform now provides a range of institutional grade services that incorporate blockchain and cryptocurrency ecosystem connectivity and standardization through a secure, scalable, and auditable solution.
Jake Benson, the CEO of Libra, has commented on the services offered by the platform:
“Libra’s vision is to be the premier provider of next generation accounting, audit, and tax software and data services for the blockchain and cryptocurrency industry.We provide our customers three core components of value. First, a single on-ramp that connects to the many data sources within the ecosystem. Second, the real-time data processing engines and services required to continuously and automatically standardize and deliver accurate financial information. And third, blockchain-native software that’s purpose-built for this industry by a team of engineers who have designed and delivered some of the most scalable and secure financial software platforms in the world.”
Libra currently offers two separate products. The first, the Libra Crypto Office, is an enterprise application that provides funds, exchanges, and market makers with the tools necessary to automate and optimize both back and middle office taxation processes and reporting. The Libra Crypto Office also helps to improve operational and finance analysis.
The second product offered by Libra is a suite of Blockchain Audit Tools that provide Information Systems Auditors with the tools necessary to perform continuous, real-time auditing and monitoring of distributed ledger systems. This product is currently under development and is set to launch in 2018.
In addition to the capital generated in their most recent round of funding, Libra has previously raised $2 million in seed funding in a series of transactions spearheaded by Fenbushi Capital and Liberty City Ventures, contributing to a total of almost $10 million in raised capital