Bench, a Canada-based accounting startup that provided 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 should trigger disruption, so we’re dedicated to serving to Bench prospects navigate by way of the transition.”
The corporate’s whole web site is at present 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 accordance with a snapshot saved by the Internet Archive.
Bench, which had raised $113 million from high-profile backers equivalent to Shopify and Bain Capital Companions, 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, mentioned years of his firm’s accounting and tax paperwork are nonetheless saved on the positioning, though he now not makes use of the platform. He discovered concerning 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 prospects ought to file a six-month extension with the IRS to “discover the suitable bookkeeping companion.” It additionally says prospects will be capable to obtain their knowledge by December 30 and may have till March 2025 to take action.
The discover recommends prospects 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 shifting quick and can be found to assist a lot of Bench’s prospects 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 present that he was “very unhappy” to see Bench shut down, alleging he had been changed by unnamed board members who wished to usher in “a brand new skilled CEO” to take Bench in a unique route.
“I hope the story of Bench goes on to turn into a warning for VCs that assume they will ‘improve’ an organization by changing the founder. It by no means works,” Crosby wrote.
