Bench, a Canada-based accounting startup that offered software-as-a-service for small and medium-sized businesses, has abruptly shut down, according to a notice posted on its website.
“We regret to inform you that as of December 27, 2024, the Bench platform will no longer be accessible,” the notice reads. “We know this news is abrupt and may cause disruption, so we’re committed to helping Bench customers navigate through the transition.”
The company’s entire website is currently offline except for the notice, leaving thousands of businesses in the lurch. Bench touted having more than 35,000 U.S. customers just hours before it was shut down, according to a snapshot saved by the Internet Archive.
Bench, which had raised $113 million from high-profile backers such as Shopify and Bain Capital Ventures, developed a software platform to help customers store and manage their bookkeeping and tax reporting documents.
The move is a shock to current and former customers. Justin Metros, the co-founder and CTO of Radiator, said years of his company’s accounting and tax documents are still stored on the site, although he no longer uses the platform. He learned about the shutdown from TechCrunch.
“I’ve never seen anyone just shut down like that,” Metros said. “That’s crazy.”
Others are airing their concerns on social media, with one posting, “as a customer, I’m pissed,” having just migrated from QuickBooks to Bench.
Bench’s notice says its customers should file a six-month extension with the IRS to “find the right bookkeeping partner.” It also says customers will be able to download their data by December 30 and will have until March 2025 to do so.
The notice recommends customers migrate to Kick, a new accounting startup that announced its $9 million seed raise in October 2024 in a round led by OpenAI and General Catalyst. Kick’s CEO and founder, Conrad Wadowski, posted a message on LinkedIn to former Bench users about how Kick is “working to get your financials back in your hands.”
Bench did not respond to requests for comment by TechCrunch as of press time. Wadowski did not respond directly to a question from TechCrunch about details of any possible agreement or other business relationship it had with Bench prior 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 told TechCrunch.
Founded in 2012, Bench employed more than 600 staff, according to a snapshot of its “About” page. The startup was backed by investors, including IT firm Sage, Contour Venture Partners, and Altos Ventures. It was also a member of the TechStars accelerator.
Bench last raised $60 million in a Series C round in 2021. Its co-founder and CEO, Ian Crosby, departed shortly after.
Crosby posted on LinkedIn today that he was “very sad” to see Bench shut down, alleging he had been replaced by unnamed board members who wanted to bring in “a new professional CEO” to take Bench in a different direction.
“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.
Source: Tech Crunch
