Employer.com has proposed acquiring Level, a fintech startup that unexpectedly ceased operations last week after failing to secure a buyer, as reported by The Information.
According to Level’s Chief Marketing Officer at Employer.com, Matt Charney, the company is currently contemplating the acquisition offer. “It’s with legal,” he stated in an interview with StartupSuperb.
Established in 2018 by former Square employee Paul Aaron, Level successfully raised $30.8 million in funding from prominent investors including Lightspeed Venture Partners and Khosla Ventures. In April 2021, the startup announced a $27 million Series A round. Level specialised in providing dental and vision benefits to businesses, which were informed last week that they needed to seek alternative providers.
This proposed acquisition marks Employer.com’s second attempt to acquire a failed startup within a week. On December 30, StartupSuperb disclosed that accounting startup Bench, which left a multitude of customers unable to access their accounts after its abrupt shutdown days prior, would be purchased by Employer.com for an undisclosed amount in a last-minute agreement. Discussions surrounding the details were ongoing as of last week.
Bench reportedly faced challenges largely due to its recent initiatives to adopt AI and other automation technologies, as per feedback from some of its employees. The specifics surrounding Level’s closure remain unclear.
