Taxfix, the $1B German accounting startup, slashes 120 jobs amid funding crunch

Taxfix leaped to a $1 cardinal valuation in 2022 connected The backmost of a celebrated mobile app utilized by consumers thief pinch taxation returns. But accelerated guardant to 2023, and The Berlin-based accounting startup is taking an audit of its ain affairs. TechCrunch has learned and confirmed that Taxfix has laid disconnected 20% of its unit — 120 labor — arsenic portion of wider restructuring of The business aimed astatine cutting costs.

The cuts were announced to unit connected Tuesday. Pointedly, they are coming in The aftermath of Taxfix acquiring a rival taxation startup in The country, Stuttgart-based taxation chatbot Steuerbot — a woody that was announced 2 months ago.

“With Taxfix’s caller successful acquisition of Steuerbot, awesome synergies are created, which alteration america to heavy summation efficiencies. Therefore we took The strategical determination to restructure The organization,” a Taxfix spokesperson said in an emailed statement. Taxfix primitively said it would run Steuerbot arsenic an independent and complementary subsidiary.

Taxfix had besides been actively recruiting conscionable anterior to today’s news; now, it nary longer lists unfastened positions astatine The institution connected its own careers page truthful it appears that hiring is besides frozen.

The abrupt changes underscore The unit that startups are nether in The existent market.

The astir promising of them will person raised large rounds in years past astatine apical valuations to enactment in alleged “growth mode” — intentionally remaining unprofitable and investing superior in their marketplace and exertion description .

But now, pinch The backing scenery dried up, galore of The aforesaid startups are being expected to prosecute a assortment of different courses: conserve The rate they have, trim costs wherever they can, beryllium prepared to return hits connected their valuations if they do request to raise (especially if they’re not tightening their belts), and purpose for profitability — each boxes that Taxfix is now aiming to check.

“The macroeconomic backing situation has changed complete The past months, and it is, therefore, much important than ever to position ourselves arsenic an independent institution for The agelong term. This entails an moreover stronger attraction of The business activities connected sustainable maturation and profitability,” The spokesperson said.

Taxfix did not remark connected its existent runway, nor whether it is presently trying to raise much money.

The past backing The startup raised was conscionable complete a twelvemonth ago, in April 2022, erstwhile it closed a $220 cardinal Series D astatine a valuation of complete $1 billion, from an awesome group of investors that included Teachers’ Venture Growth (formerly Ontario Teachers’ Pension Plan Board), Index Ventures, Valar Ventures, Creandum and Redalpine.

In much heady times, you mightiness person expected Taxfix to travel The way of different high-flying unicorns: by now it would person scooped up yet much investors and superior astatine an moreover higher valuation to break into much markets and accounting categories. But these days, sounds for illustration there’s a batch riding connected conscionable keeping things operating steadily connected its ain steam.