Column Tax announces $ 5.1 million funding round to launch mobile tax preparation products – TechCrunch

Mobile income tax software Tax column announced today that it has raised $ 5.1 million in seed funding and launched its first commercial product, which will provide users with quick access to their tax refunds.

Bain Capital Ventures led the funding round alongside South Park Commons, Core Innovation Capital and Operator Partners. Some prominent angel investors also participated in the round, including Opendoor founder Eric Wu and former Wealthfront CEO Adam Nash.

Column Tax’s “Tax Refund Unlock” becomes available today for 2 million users of the cash advance application Klover, who tend to be millennials and Gen Z Americans, Klover CEO Brian Mandelbaum told TechCrunch in an email. Early access to tax refunds serves as an interest-free loan, rreduce the need for users to take on expensive loans or accumulate credit card debt, Mandelbaum said.

Product runs on payroll connectivity provider APIs Atomic, allowing users to receive their tax refund income in their paychecks.

Column Tax co-founders Gavin Nachbar and Michael Bock. Image credits: Tax column

Column Tax’s tax preparation product, “Tax Filing,” will also launch in February 2022 in time for the next tax season, the company told TechCrunch. The proceeds from the funding round will help the company’s eight-person team reach more than 20 employees by the end of next year with the goal of expanding both products, said CEO and founder Gavin. Nachbar at TechCrunch in an interview.

Column Tax’s software differs from that of incumbents like TurboTax and H&R Block in that it is mobile-only and will be integrated with a customer’s existing bank account, allowing for year-round integration which the company says will reduce user time spent on tax. preperation.

“Wealthy Americans have access to CPAs, accountants and tax advisers who look after their finances year round. We think we can take a lot of that and put it into software and give people access to it year round, ”Nachbar said.

Nachbar, who was previously head of operations strategy and infrastructure at Waymo, said payroll data companies have created “a whole new wave of opportunities” for fintechs looking to build technology solutions around income and payroll.

“Before Atomic, it was not possible to understand someone’s tax situation in the middle of the year without them downloading a pay stub and emailing it to you,” Nachbar said.

While Column Tax only supports federal tax returns today, it plans to potentially add state tax offerings, starting with New York and California, Nachbar added.

Nachbar sees growth potential for integrated tax solutions that are integrated with other financial platforms, citing the Cash App buyout of Credit Karma Tax as a notable example.

“We are entering this new era of integrated taxes,” Nachbar said. “The engine of income tax is really complex. It’s a big technical problem. We are putting together a great team of engineers to deal with it.

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