Bench, a Canada-based accounting startup that provided software-as-a-service for small and medium-sized companies, has abruptly shut down, in response to a discover posted on its web site.
“We regret to inform you that as of December 27, 2024, the Bench platform will no longer be accessible,” the discover reads. “We know this news is abrupt and may cause disruption, so we’re committed to helping Bench customers navigate through the transition.”
The firm’s whole web site is at the moment offline apart from the discover, leaving hundreds of companies within the lurch. Bench touted having greater than 35,000 U.S. clients simply hours earlier than it was shut down, in response to a snapshot saved by the Internet Archive.
Bench, which had raised $113 million from high-profile backers akin to Shopify and Bain Capital Ventures, 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, stated 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 realized in regards to the shutdown from TechCrunch.
“I’ve never seen anyone just shut down like that,” Metros stated. “That’s crazy.”
Others are airing their issues on social media, with one posting, “as a customer, I’m pissed,” having simply migrated from QuickBooks to Bench.
Bench’s discover says its clients ought to file a six-month extension with the IRS to “find the right bookkeeping partner.” It additionally says clients will have the ability 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 introduced its $9 million seed increase in October 2024 in a spherical led by OpenAI and General 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 back in your hands.”
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 doable settlement or different enterprise relationship it had with Bench previous to the shutdown.
“As you saw on the website, we’re moving fast and are available to support many of Bench’s customers with their bookkeeping needs,” he advised TechCrunch.
Founded in 2012, Bench employed greater than 600 workers, in response to a snapshot of its “About” web page. The startup was backed by traders, together with IT agency Sage, Contour Venture Partners, and Altos Ventures. It was additionally a member of the TechStars accelerator.
Bench final raised $60 million in a Series C spherical in 2021. Its co-founder and CEO, Ian Crosby, departed shortly after.
Crosby posted on LinkedIn right now that he was “very sad” to see Bench shut down, alleging he had been changed by unnamed board members who needed to herald “a new professional CEO” to take Bench in a unique route.
“I hope the story of Bench goes on to become a warning for VCs that think they can ‘upgrade’ a company by replacing the founder. It never works,” Crosby wrote.
