Bench, a Canada-based accounting startup that provided software-as-a-service to small and medium-sized companies, has shut down instantly, in keeping with a discover posted on its web site.
“We remorse to tell you that from December 27, 2024, the bench platform will now not be accessible,” the discover learn. “We all know this information is sudden and could be disruptive, so we’re dedicated to serving to Bench clients navigate the transition.”
The corporate’s total web site is at present offline with out discover, disrupting hundreds of companies. Based on a snapshot archived by the Web Archive, Bench advised greater than 35,000 US customers simply hours earlier than shutting it down.
Bench, which 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 comes as a shock to present and former clients. Justin Metros, co-founder and CTO of Radiator, mentioned his firm’s accounting and tax paperwork from years in the past are nonetheless saved on the location, although he now not makes use of the platform. He discovered concerning the shutdown from TechCrunch.
“I’ve by no means seen anyone shut down like that,” Metros mentioned. “That is loopy.”
Others are voicing their issues on social media, with one publish saying “As a buyer, I am offended” simply moved from QuickBooks to Bench.
The bench’s discover mentioned its clients ought to request a 6-month extension with the IRS to “discover the correct bookkeeping companion.” It additionally states that customers will be capable of obtain their information till December 30, and may have time till March 2025.
The discover recommends customers migrate to Kick, a brand new accounting startup that introduced in October 2024 that it had raised $9 million in a seed spherical led by OpenAI and Normal Catalyst. Konrad Wadowski, Kik’s CEO and founder, posted a message to former Bench customers on LinkedIn about how Kik is “working to place your funds again in your fingers.”
The bench didn’t reply to TechCrunch’s requests for remark until press time. Wadowski didn’t immediately reply to TechCrunch concerning the particulars of any potential deal or different enterprise relationship with Bench previous to the closing.
“As you have seen on the web site, we’re shifting rapidly and can be found to assist many Bench clients with their bookkeeping wants,” he advised TechCrunch.
Based in 2012, Bench employs greater than 600 employees, in keeping with a snapshot on 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 left shortly after.
Crosby posted on LinkedIn right now that he was “very unhappy” to see the bench shut, alleging that he had been changed by unnamed board members who have been making an attempt to take the bench in a distinct route with “a Need to usher in a brand new skilled CEO”.
“I hope Bunch’s story serves as a warning to VCs who assume they will “improve” an organization by changing a founder. That by no means works,” Crosby wrote.
