Sudden Closure of Bench Leaves Businesses Scrambling
In an unexpected turn of events, Bench, a Canadian accounting startup known for its software-as-a-service offerings for small and medium-sized businesses, has announced its immediate shutdown. The closure was confirmed through a notice on their now largely inaccessible website, stating, “We regret to inform you that as of December 27, 2024, the Bench platform will no longer be accessible.” This news has taken many by surprise and left a significant number of businesses searching for alternatives.
Just hours before the announcement, Bench boasted over 35,000 U.S. customers, according to an Internet Archive snapshot. The company had raised $113 million from prominent investors like Shopify and Bain Capital Partners and provided a platform designed to assist businesses with bookkeeping and tax document management.
“I’ve never seen anyone just shut down like that. That’s crazy,” remarked Justin Metros, co-founder and CTO of Radiator, whose accounting documents remain on Bench’s platform despite his no longer using their services.
— Justin Metros
The abrupt shutdown has prompted a flurry of reactions on social media, with one user expressing frustration over recently switching from QuickBooks to Bench. In light of the closure, Bench advises its customers to file a six-month IRS extension to find a new bookkeeping partner. Customers can download their data until March 2025, with instructions pointing them toward Kick, a new startup that recently secured $9 million in funding.
Conrad Wadowski, CEO of Kick, reached out via LinkedIn stating their commitment to assist former Bench users in regaining control of their financials. However, details regarding any prior agreements between Kick and Bench remain undisclosed.
Founded in 2012 and once employing over 600 staff members, Bench was heavily backed by investors such as IT firm Sage and Altos Ventures. The startup joined the TechStars accelerator and raised $60 million in a Series C round in 2021 before co-founder and CEO Ian Crosby departed. On LinkedIn today, Crosby expressed sadness over the shutdown and criticized the board’s decision to replace him with a new CEO.
“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 shared in his post.
— Ian Crosby
- Bench’s platform is no longer accessible as of December 27, 2024.
- Customers are advised to migrate their data by March 2025.
- Kick is offering support for former Bench users.
- Former CEO Ian Crosby voices his disappointment over the company’s direction post-departure.
