Nearly $600 billion in sales tax is collected at the state and local level in the U.S. each year, yet the infrastructure behind how it’s calculated, filed, and audited is still manual, fragmented, and built for a different era. Our team had seen this firsthand both as a CPA and inside an ecommerce company dealing with tools like Avalara. It’s painful, expensive, and rarely works as it should.
Today, we’re excited to announce our investment in Taxwire, which has raised $25 million. We co-led the Seed with XYZ Ventures and quickly doubled down as the company scaled 5x in under eight months from when we first met the team.
Sales tax sits in an awkward middle ground: too complex for SMB tools, too operational for enterprise software, and too critical to get wrong. Mid-market finance teams end up owning the outcome without the right expertise or tools, leading to overpayment, under-filing, audit risk, and endless manual work.
From personal experience, the dominant platforms charge enterprise prices for complexity and still don’t solve the problem. Co-founders Andrew Rea and Steven Schmatz saw the same gap and built Taxwire.
In the last year, Taxwire has served over 300 customers, recovered millions in overpayments, enabled cross-border compliance, and displaced more than 150 legacy systems. This round fuels the next phase of growth.
Our belief is that the hardest part of sales tax isn’t calculation or filing, it’s everything before and after. It’s structuring messy transaction data, mapping inconsistent product catalogs to tax rules, managing exemption certificates, and handling state notices. This is where legacy systems break and where Taxwire is focused.
Taxwire is built at the transaction layer, where tax actually fails. Their proprietary engine spans over 20,000 jurisdictions and more than 100,000 rules, delivering real-time, rooftop-level accuracy. Combined with deep integrations across ERPs, billing systems, and payment processors, plus end-to-end workflows from nexus determination through audit support, the result is a system that works in practice not just in theory. This allows Taxwire to work across industries, geographies and actually manage services, not just calculate. Taxwire works across multiple industries including commerce, software, marketplaces, manufacturing and more.
One customer mentioned that they provided “ tooling to track nexus exposure, manage registration paperwork, and keep the company proactively informed about when they were approaching nexus thresholds. The hands-on service and willingness to assume ownership were key decision factors. When new registrations need to be filed, Taxwire provides significant lead time before any nexus-triggered requirements, so the customer is never caught off guard. They integrate with customer’s Stripe instance, and tax amounts also feed into their reporting and ERP systems.” They also described the Taxwire team as “too impressive to ignore.” Another customer mentioned that prior to Taxwire they paid Stripe, Avalara and outsourced accountants to reconcile things that would take 2 full business days.
While incumbents like Avalara and Vertex grew through fragmented systems, and newer entrants like Numeral and Anrok remain more verticalized, Taxwire is building a unified platform across industries, geographies, and use cases from day one.
A key differentiator is embedded intelligence. Taxwire learns from past invoices, applies tax logic automatically, and creates deterministic outcomes with built-in audit trails. Manual workflows like exemption management or notice handling are automated directly within finance teams’ existing systems.
Just as importantly, Taxwire is not just software, it’s a fully managed compliance solution. The team handles nexus, registrations, filings, remittances, and notices end-to-end. Finance teams don’t adopt another tool; they hand off the problem entirely.
The timing is critical. Enforcement is increasing, global commerce is expanding, and tax rules are becoming more complex. Meanwhile, legacy tools are falling short, and new technology makes true automation possible. Every company operating across jurisdictions needs this to work and today, most don’t.
Taxwire is led by Andrew Rea and Steven Schmatz, combining speed, customer empathy, and technical depth with deep domain expertise from leaders across Deloitte, EY, TaxJar, Avalara, Zamp, and Abacum. That mix of high-slope builders and true tax expertise is rare,and essential.
Sales tax compliance isn’t optional, it’s core infrastructure. The kind that keeps companies out of audits and operations running smoothly. We believe Taxwire is building the platform that will power every dollar of sales tax collected, and we’re excited to partner with them on that journey.