Radical transformation: Interview with the founder of Taxdoo
With its software for VAT accounting, Taxdoo was one of Hamburg's most successful startups. The sentence is deliberately phrased in the past tense, as the startup announced a few days ago that it would be discontinuing its old business model by the end of April and venturing into a drastic pivot, a reorientation of the company. In this interview, Dr Roger Gothmann, one of the founders of Taxdoo, explains why this step was taken and the direction the startup is now heading in.
How and when was the decision to pivot made?
From July 2028, EU regulations will render the majority of our previous business obsolete. We knew this from the outset. It was therefore clear from the beginning that we would expand our second product line – financial accounting. In spring 2025, we were no longer able to have a large part of our team working on one product because everyone knew that in two years' time, no one would need it anymore. Added to this were the immensely rapid developments in the field of artificial intelligence. We realised that this could not be a gradual process, but rather a bold transformation that would result in a rapid and clear focus.
Will the team remain as strong as it is today?
There will be changes. It would be dishonest to deny that. However, our tax experts, who have always been the figurehead of our taxtech business, are not being phased out. At the tax office, there is only right = 100% or wrong < 100%. That's why we combine both worlds: efficiency through AI and responsibility/liability through experts.
How do you get your employees on board with the change?
By being honest before we try to inspire, which is often the immediate reflex of a founder. Transformation naturally brings with it self-doubt. Especially when you are the first to go down this path. We therefore do not have a concrete answer to every question. We say this just as openly internally as we do externally.
What does your new product do and when did it come onto the market?
Taxdoo Accounting posts daily updates with a real-time dashboard for retailers. E-commerce companies operating in a highly agile environment thus receive timely data for their decisions. Through the symbiosis of AI technology and real experts who personally review complex cases, we provide what is known as a service as a software. The product is already live with over 1,000 customers. However, marketing has only been underway for a few weeks.
What is the biggest challenge in such a product changeover?
Having the courage to transform before you are forced to do so. We are consciously accepting a temporary loss of revenue when we discontinue the VAT product and enter a market with financially strong competitors. That is no small matter.
What makes your solution special?
Niche depth and the associated data. We draw on over 14.5 billion euros in GMV (gross merchandise value) in e-commerce, which we have processed annually with TAXDOO. In addition, accountants and tax advisors are involved in our product development. Data and real human experience together form a deep moat.
