Bench, the venture capital-backed accounting startup, has experienced a shocking few days, leaving its customers unsettled before a last-minute recovery. Below is a summary of the events that transpired.
Highlights
The Unexpected Shutdown
On December 27, 2024, Bench unexpectedly ceased its operations, leaving its 12,000 customers taken by surprise. This abrupt halt was particularly disruptive, occurring just after Christmas and on the verge of the 2025 tax season. Customers were notified via email that access to the Bench platform would be terminated.
Customer Turmoil
The sudden closure forced numerous customers to rush to retrieve vital financial documents, such as loan statements and tax returns. Elizabeth MacBride, an author and small business owner, expressed her disappointment upon being unable to access essential financial information during her postponed Christmas celebrations.
Initial Guidance and Consequences
Initially, Bench suggested that customers file for a six-month IRS extension and switch their data to a competitor, such as Kick. However, this guidance proved too late for many, who were already distressed about securing their financial records.
The Impact of Venture Capital Involvement
The shutdown serves as a warning regarding the potential hazards of venture capital engagement. Following the ousting of original founder Ian Crosby by venture capitalists, the company shifted direction, ultimately leading to its decline. Crosby co-founded Bench in 2012, and prior to its closure, the company had raised over £100 million in funding.
A Last-Minute Acquisition
As the situation looked increasingly bleak, Employer.com, a San Francisco-based HR technology firm focused on payroll and onboarding, intervened to acquire Bench. This acquisition was confirmed on December 30, 2024, in a timely intervention. Employer.com is set to revive Bench’s platform and will soon provide customers with guidance on how to log in and retrieve their data.
New Ownership and Future Prospects
Matt Charney, the Chief Marketing Officer of Employer.com, reassured customers that they would have the option to transfer their data or maintain their service under the new management. The company’s website now features a welcoming message titled “Welcome Back,” informing customers that their service will continue seamlessly with the platform they have come to rely on.
Reflecting and Looking Ahead
The unexpected shutdown and following acquisition of Bench highlight the difficulties and dangers associated with rapid expansion and venture capital involvement. As customers adjust to this change, they remain optimistic that the new ownership will provide the stability and reliability they require. While Bench has faced significant challenges, it appears to have survived, at least for the time being.