Startup of the Day: Polish crypto tax startup Cryptiony

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. In January 2023 Cryptiony was also launched in the UK. Cryptiony has already closed a €500,000 in a pre-seed funding round led by ff Venture Capital with participation by Pointer.Capital and Marcin Wenus, web3-focused angels.

In the Startup of the Day column, the CEO of Cryptiony Bartosz Milczarek shares more details about the startup’s idea, its product, and future plans.

“The Startup of the Day column on AIN.Capital is dedicated to tech projects from all sectors that originated from the CEE countries. If you would like to introduce your project, please fill in the questionnaire.”

Bartosz Milczarek, CEO, Krzysztof Dworakowski, CTO, Hanna Milczarek, CMO of Cryptiony

Tell us about your startup. How does it work?

Cryptiony is a crypto tax automation solution for individuals and tax professionals, enabling quick and frictionless tax calculations. We have simplified the process of settling the tax on digital assets to the necessary minimum. The user just needs to create a user account, then connects with exchanges by API or imports transaction history from statements provided by the exchange or broker. And tax report will be ready to download in seconds. Or the user can just monitor tax liabilities in the application.

Generation Z does not like to contact tax professionals, which is why we have created an application thanks to which crypto investors can settle their crypto taxes. However, there are people, e.g. entrepreneurs, who do not like to do it on their own. That’s why we also have an application for tax professionals who can settle people who prefer to delegate it to tax professionals.

How did you come up with the startup’s idea? What was the reason/motivation behind it?

It all started with the fact that I had a lot of cryptocurrency transactions, and there were no such solutions adapted to the Polish tax jurisdiction. I have a technical background, so at first, I created the tool for myself, later it turned out to be useful for my friends — that’s how it all started. Of course, today’s app is nothing like the prototype that was initially for my personal use.

How long did it take to reach the prototype or MVP? What did you encounter?

We started with the Polish market, where, surprisingly, the tax regulations regarding cryptocurrencies are quite simple. The prototype was built in a few months. It had to be built quickly because we had to make it before the deadline for filing tax returns.

When exactly did you launch your product? Or when the launch is planned?

We launched Cryptiony in Poland in February 2021 and in the UK in January 2023.

Tell us about the startup’s business model. How do you monetize your product?

The business model is very simple. It is based on annual subscriptions — per tax year. Tax returns are filed by taxpayers once a year, so unfortunately it is a seasonal business, which makes it a bit difficult to run.

What are your target markets and consumers?

We currently offer our services in Poland and the UK, but in the next two years, we aim to be a leader in Europe. Our target group is all cryptocurrency users in the countries where we offer our services because in most cases, everyone has to settle taxes with tax authorities sooner or later. And, of course, tax offices and accounting offices.

If the startup has already launched the product, what are the results: metrics, income, or any clear indicators that can be evaluated?

In the second year of operation, we increased the number of users tenfold.

What about your team? How many people are working in the startup? If you’re looking for new employees, indicate whom exactly.

We have a team of ten.

Have you already raised any investments? Provide us with more details on each funding round: the amount, investors, and the purpose of the investment.

Have you already raised any investments? Provide us with more details on each funding round: the amount, investors, and the purpose of the investment.

What’s next? Tell us about your future plans.

We want to add the next features: portfolio trackers, add next integrations with exchanges and blockchains. What is more, we want to expand our b2b tool. But most importantly, we focus on further foreign expansion.