Bench, a Canada-based accounting startup that supplied software-as-a-service for small and medium-sized companies, has abruptly shut down, in accordance with a discover posted on its website.
“We remorse to tell you that as of December 27, 2024, the Bench platform will now not be accessible,” the discover reads. “We all know this information is abrupt and will trigger disruption, so we’re dedicated to serving to Bench clients navigate via the transition.”
The corporate’s total web site is at present offline apart from the discover, leaving 1000’s of companies within the lurch. Bench touted having greater than 35,000 U.S. clients simply hours earlier than it was shut down, in accordance with a snapshot saved by the Internet Archive.
Bench, which had raised $113 million from high-profile backers similar to Shopify and Bain Capital Companions, developed a software program platform to assist clients retailer and handle their bookkeeping and tax reporting paperwork.
The transfer is a shock to present and former clients. Justin Metros, the co-founder and CTO of Radiator, mentioned years of his firm’s accounting and tax paperwork are nonetheless saved on the location, though he now not makes use of the platform. He discovered in regards to the shutdown from TechCrunch.
“I’ve by no means seen anybody simply shut down like that,” Metros mentioned. “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 clients ought to file a 6-month extension with the IRS to “discover the appropriate bookkeeping accomplice.” It additionally says clients will be capable to obtain their knowledge by December 30, and can have till March 2025 to take action.
The discover recommends clients migrate to Kick, a brand new accounting startup that announced its $9 million seed elevate in October 2024 in a spherical led by OpenAI and Normal 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 fingers.”
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 clients with their bookkeeping wants,” he instructed TechCrunch.
Based in 2012, Bench employed greater than 600 workers, in accordance with a snapshot of its ‘About page’. The startup was backed by traders, together with IT agency Sage, Contour Enterprise Companions, and Altos Ventures. It was also a member of the TechStars accelerator.
Bench last raised $60 million in a Sequence C spherical in 2021. Its co-founder and CEO Ian Crosby departed shortly after.
Crosby posted on LinkedIn at the moment that he was “very unhappy” to see Bench shut down, alleging he had been changed by unnamed board members who needed to usher in “a brand new skilled CEO” to take Bench in a distinct route.
“I hope the story of Bench goes on to develop into a warning for VCs that assume they will “improve” an organization by changing the founder. It by no means works,” Crosby wrote.
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