Backed by Founders Fund, finance automation platform Ramp, and other notable tech heavyweights, Tactic is building a crypto accounting platform to save businesses time and gain deeper insight into their crypto activity
Provides one of the first solutions for enterprises' crypto and DeFi accounting needs that works with traditional software like QuickBooks
Investment will be used for hiring and support for additional blockchains
Rapidly adding customers spanning early stage startups to billion-dollar enterprises
NEW YORK, May 4, 2022 /PRNewswire/ -- Tactic (http://www.tactic.com), the crypto accounting platform that's built to save businesses time, launched publicly today and announced that it has secured $2.6 million in funding.
The financing was co-led by Founders Fund and Ramp, the finance automation platform, which recently announced its own fundraise at a $8 billion valuation. Prominent tech investors including Elad Gil and Dylan Field also participated in the funding.
Companies interacting with blockchains struggle to make sense of their fragmented activity: they tend to manage multiple wallets across various blockchains and hold funds in centralized exchanges or self-custody solutions like Gnosis Safe.
Tactic is tackling the problem of accounting for a business's cryptocurrency holdings and on-chain activity by aggregating data across disparate sources to give businesses a full treasury view of their balances and activities. The platform helps companies automatically categorize transactions and apply accounting logic such as calculating $USD gain/loss and taxable events. Accountants can then reconcile a business's crypto-subledger to traditional accounting software like QuickBooks.
"Tactic solves a real pain point for businesses managing cryptocurrency finances and the product is already saving crypto accounting teams days each month. We believe Tactic has the potential to become a massive player as more companies move into web3," said Leigh Marie Braswell, Principal at Founders Fund.
The past several years have witnessed a Cambrian explosion of crypto and blockchain businesses, with VCs investing $33 billion into the sector in 2021, with $10.5 billion in Q4 alone.
After talking to hundreds of companies, Tactic found that decentralized finance or "DeFi" transactions were the most problematic – a single interaction with a smart contract can generate hundreds of "nested transactions" all of which need to be broken out for accounting purposes. Tactic has partnered with leading accounting firms to help interpret accounting guidelines for DeFi-specific activities such as staking, NFT minting, and airdrops.
"Businesses have come to expect back-office solutions that help them get started quickly and automate their manual tasks. Tactic makes it easy for businesses to transact in cryptocurrency, knowing they can manage their financial activity in a clean, compliant way," said John Dempsey, Tactic's VP of Strategy and Ops, and formerly VP Product at Chainalysis, the blockchain forensics firm.
Since launching in 2021, Tactic has signed up dozens of customers, ranging from early stage startups to billion-dollar enterprises across industries including NFTs, protocols, and DeFi. The company is designing its platform to work with businesses that have hundreds of thousands in transaction volumes per month, which existing solutions are unable to handle.
Ann Jaskiw, Tactic founder and CEO, started the company after learning that founders in web3 were handling their accounting in spreadsheets because existing solutions weren't built with the enterprise in mind. The Tactic team has extensive experience in tech and finance, having spent time at companies such as Google, Microsoft, Goldman Sachs, DE Shaw, and Flatiron Health. The company plans to use the funds to continue growing the team over the coming year.
"It takes businesses hours of manual processes and spreadsheets to manage accounting for cryptocurrency activity. Tactic is anticipating this growing pain point for companies," said Eric Glyman, Ramp CEO and co-founder. "We're partnering with the Tactic team because they share Ramp's ethos of building easy-to-use software that saves time for owners and business operators."
Tactic helps companies that hold or interact with cryptocurrencies manage their finances in a clean, compliant way. The platform provides a clear view of an organization's treasury and a robust transaction audit trail in an accounting-friendly format. Tactic works seamlessly with existing custody solutions including Gnosis Safe and traditional financial software like QuickBooks.