Bench, a Canada-based accounting startup that provided software-as-a-service for small and medium-sized companies, has abruptly shut down, in line with a discover posted on its web site.
“We remorse to tell you that as of December 27, 2024, the Bench platform will not be accessible,” the discover reads. “We all know this information is abrupt and should trigger disruption, so we’re dedicated to serving to Bench prospects navigate by the transition.”
The corporate’s total web site is presently offline aside from the discover, leaving 1000’s of companies within the lurch. Bench touted having greater than 35,000 U.S. prospects simply hours earlier than it was shut down, in line with a snapshot saved by the Web Archive.
Bench, which had raised $113 million from high-profile backers resembling Shopify and Bain Capital Ventures, developed a software program platform to assist prospects retailer and handle their bookkeeping and tax reporting paperwork.
The transfer is a shock to present and former prospects. Justin Metros, the co-founder and CTO of Radiator, stated years of his firm’s accounting and tax paperwork are nonetheless saved on the positioning, though he not makes use of the platform. He realized concerning the shutdown from TechCrunch.
“I’ve by no means seen anybody simply shut down like that,” Metros stated. “That’s loopy.”
Others are airing their considerations on social media, with one posting, “as a buyer, I’m pissed,” having simply migrated from QuickBooks to Bench.
Bench’s discover says its prospects ought to file a six-month extension with the IRS to “discover the appropriate bookkeeping associate.” It additionally says prospects will have the ability to obtain their knowledge by December 30 and can have till March 2025 to take action.
The discover recommends prospects migrate to Kick, a brand new accounting startup that introduced its $9 million seed increase in October 2024 in a spherical led by OpenAI and Common Catalyst. Kick’s CEO and founder, Conrad Wadowski, posted a message on LinkedIn to former Bench customers about how Kick is “working to get your financials again in your arms.”
Bench didn’t reply to requests for remark by TechCrunch as of press time. Wadowski didn’t reply on to a query from TechCrunch about particulars of any potential settlement or different enterprise relationship it had with Bench previous to the shutdown.
“As you noticed on the web site, we’re transferring quick and can be found to assist lots of Bench’s prospects with their bookkeeping wants,” he informed TechCrunch.
Based in 2012, Bench employed greater than 600 workers, in line with a snapshot of its “About” web page. The startup was backed by traders, together with IT agency Sage, Contour Enterprise Companions, and Altos Ventures. It was additionally a member of the TechStars accelerator.
Bench final raised $60 million in a Collection C spherical in 2021. Its co-founder and CEO, Ian Crosby, departed shortly after.
Crosby posted on LinkedIn at this time that he was “very unhappy” to see Bench shut down, alleging he had been changed by unnamed board members who needed to herald “a brand new skilled CEO” to take Bench in a distinct path.
“I hope the story of Bench goes on to change into a warning for VCs that suppose they will ‘improve’ an organization by changing the founder. It by no means works,” Crosby wrote.