Bench, an accounting startup based in Canada, which provided software-as-a-service for small and medium enterprises, has unexpectedly ceased operations, as per a notice displayed on its website.
“We regret to announce that the Bench platform will be unavailable after December 27, 2024,” the notice states. “We understand this news is sudden and may lead to disruptions, so we are dedicated to assisting Bench customers through this transition.”
The entirety of the company’s website is currently down, except for the notice, leaving numerous businesses in a challenging position. Bench claimed to have over 35,000 customers across the U.S. just hours before the shutdown, according to a snapshot archived by the Internet Archive.
Having raised $113 million from prominent investors such as Shopify and Bain Capital Ventures, Bench created a software platform that facilitated the storage and management of bookkeeping and tax-related documents for its users.
This decision has surprised both current and former clients. Justin Metros, co-founder and CTO of Radiator, stated that years of his company’s accounting and tax records remain accessible on the platform, even though he no longer uses Bench. He discovered the shutdown through StartupSuperb.
“I’ve never experienced a situation where a company simply shut down like this,” Metros noted. “It’s astonishing.”
Clients have taken to social media to express their dissatisfaction, with one individual expressing frustration, stating, “as a customer, I’m furious,” having recently transitioned from QuickBooks to Bench.
According to the notice, customers are advised to file a six-month extension with the IRS to “identify an appropriate bookkeeping partner.” Additionally, clients will have the ability to download their data until December 30, with a final deadline in March 2025.
The notice suggests that clients consider migrating to Kick, a new accounting firm that raised $9 million in seed funding in October 2024, backed by OpenAI and General Catalyst. The CEO and founder of Kick, Conrad Wadowski, shared a message for former Bench customers on LinkedIn, detailing Kick’s efforts to help regain access to their financial data.
As of the time of publication, Bench did not respond to inquiries from StartupSuperb. Wadowski also did not provide a direct response to StartupSuperb regarding any potential agreements or business relations with Bench prior to its closure.
“As indicated on the website, we are rapidly mobilising and are ready to assist many of Bench’s customers with their bookkeeping requirements,” he informed StartupSuperb.
Bench, founded in 2012, employed over 600 individuals, as indicated by a snapshot of its ‘About’ page. The startup enjoyed support from investors including IT company Sage, Contour Venture Partners, and Altos Ventures, and was part of the TechStars accelerator programme.
Bench last secured $60 million in a Series C financing round in 2021, after which co-founder and CEO Ian Crosby left the company.
Crosby expressed on LinkedIn his deep disappointment over the shutdown, claiming he had been replaced by undisclosed board members aiming to appoint “a new professional CEO” to steer Bench in a different direction.
“I hope the narrative of Bench serves as a cautionary tale for venture capitalists who believe they can ‘upgrade’ a company by substituting the founder. It never ends well,” Crosby remarked.