Bench, a renowned accounting startup from Canada that created a software-as-a-service solution for small to mid-sized companies, has suddenly ceased operations as stated in a notification on its site.
The notification on the site reads, “We are sorry to announce that the Bench platform will be inaccessible starting December 27, 2024. We acknowledge that this unexpected news may create disruptions and as such, we are committed to assisting Bench clients in transitioning smoothly.”
Currently, the company’s website is down, displaying only the notification, leaving a multitude of businesses at a loss. Just hours prior to its closure, Bench claimed to serve more than 35,000 U.S. clients, as per a snapshot from the Internet Archive.
Having secured $113 million in funding from high-profile investors including Shopify and Bain Capital Ventures, Bench had developed a software platform that assists clients in safely storing and managing their bookkeeping and tax documents.
The sudden closure has taken both current and former clients by surprise. Justin Metros, the co-founder and CTO of Radiator, mentioned that years of his company’s accounting and tax records are still housed on the site, even though he no longer uses the platform. He discovered the closure through TechCrunch.
Bench’s notification advises its clients to file a six-month extension with the IRS while they transition to a new bookkeeping partner. It also mentioned that customers can download their data until December 30 and have until March 2025 to do so.
The notice recommends Kick, a fresh accounting startup that recently raised $9 million in seed funding in October 2024, with OpenAI and General Catalyst leading the round. Kick’s CEO and founder, Conrad Wadowski, posted a message on LinkedIn for former Bench users, stating Kick is “working to get your financials back in your hands.”
Launched in 2012, Bench boasted a team of over 600 employees and was financially backed by investors like IT firm Sage, Contour Venture Partners, and Altos Ventures. It was a participant in the TechStars accelerator program.
Bench’s last fundraising effort netted $60 million in a Series C round in 2021. Shortly after, its co-founder and CEO, Ian Crosby, left the company.
Crosby expressed his sorrow over Bench’s closure on LinkedIn, suggesting that he was replaced by anonymous board members who had a vision to steer Bench in a new direction by bringing in a “professional CEO”. He expressed hope that Bench’s story would serve as a cautionary tale for venture capitalists contemplating replacing a company’s founder.
