The Block: Coinbooks raises $3.2 million to build accounting software for DAOs

Coinbooks, an accounting software startup based in San Francisco, is 3 months old. But in that time, the company has raised a total of $3.2 million from investors including Y Combinator, Multicoin Capital, Lattice Capital, Polygon’s founders, Seed Club Ventures, and Orange DAO.

Founded by 21-year-old founder and CEO Arnav Bathla, the company aims to change the way decentralized autonomous organizations or “DAOs” and crypto companies currently perform accounting.

“Existing accounting platforms integrate with your bank account. DAOs and crypto companies use wallets for their crypto transactions. This means they have to manually copy-paste transactions onto existing platforms to track their crypto,” Bathla told The Block.

Coinbooks work by integrating with crypto wallets and existing accounting software so that crypto companies can manage both their crypto and non-crypto transactions in one place.

DAOs saw growth in the last year, with nearly 1.7 million members and $16 billion in total AUM as of December 2021, according to The Block Research. Unlike traditional companies, DAOs work through smart contract tooling and often utilize flat organization structures.

Coinbooks’ most recent round, completed earlier this month, was for $2.5 million, with a pre-seed in February for $700,000. With this funding, Bathla aims to build out a stronger team, test a product-market fit, and focus on scaling. Coinbooks will also be joining Y Combinator’s summer 2022 cohort.