Polish startup Cryptiony raises €500k in a pre-seed round

Łódź-based crypto tax startup Cryptiony has raised €500,000 in a pre-seed funding round to expand its platform to the UK. The round was led by ff Venture Capital, Pointer.Capital, and an angel investor Marcin Wenus participated.

• Founded in 2021 by Bartosz Milczarek, Hanna Milczarek, and Krzysztof Dworakowski, Cryptiony develops a crypto tax automation platform for individuals, traders, and tax professionals. The company aims to make cryptocurrency tax calculation easy, fast, and affordable, by linking directly to exchanges via APIs and extracting relevant data.
• Many crypto users are operating on multiple exchanges and blockchains, making tracking all assets and historical transactions complicated. Cryptiony optimized its cloud infrastructure and networking routing to reduce data synchronization to one or two seconds for most exchanges. This took around 15 minutes for other tools.

“The number of global crypto and digital asset users recently passed 320 million according to Binance. Eventually this number will reach billions. Each one of those users has to start reporting their tax liabilities, making an extraordinary market opportunity for Cryptiony’s automation tool. Early leadership is important in fast-growth markets and this pre-seed round gives Cryptiony the means to build a strong position in Europe first,”

Mariusz Adamski, Partner at ff Venture Capital, comments.

• ff Venture Capital is one of the best-performing seed and early-stage venture capital firms with offices in New York and Warsaw. Its portfolio includes over 90 active companies across such technology sectors as applied AI, fintech, insurtech, drones, and robotics. Among other things, in September 2022, the firm launched a $30 million Ukraine-focused fund to help support the ecosystem.
• Pointer.Capital and Marcin Wenus, a web3-focused angel, also participated in the funding. Pointer.Capital is a global money management firm that makes control equity investments in privately-held lower middle-market businesses.

“If crypto ever was part of a separate universe, it isn’t now. Tax authorities are treating trading profits just like any other capital gain and taxpayers are waking up to the risks of non-compliance. It’s a big market already and, as web3 becomes mainstream, is going to get even bigger. The UK is our most important opportunity right now and the new pre-seed funding enables us to grab that opening with a pricing model that is going to be hard to ignore,”

Bartosz Milczarek, co-founder and CEO at Cryptiony, says.

• The new funding will enable Cryptiony to launch in the UK, which is the largest crypto market in Europe. It is also expanding its development team to introduce new features, and new exchange and blockchain integrations.