FinTech News
Small Business Accounting Platform Bench Shuts Down
An accounting startup geared toward small and medium-sized businesses has abruptly shut down.
About Bench’s closure:
As TechCrunch reports, the platform Bench has announced its immediate shutdown. The news was shared via the service’s website, writing in part, “[T]he Bench platform will no longer be accessible. We know this news is abrupt and may cause disruption, so we’re committed to helping Bench customers navigate through the transition.” The message goes on to note that customers will receive further information about how they can access their Bench data on December 30th. Once available, customers will have until Friday, March 7th at 5:00 p.m. Eastern to download their data.
Although it is a Canadian startup, Bench reported having more than 35,000 U.S.-based customers prior to its closure. Previously, the company had raised more than $109 million, including a CAD$73 million Series C in 2021. Among the firm’s investors were Bain Capital, Contour Ventures Partners, and Shopify. However, TechCrunch notes that Bench CEO Ian Crosby was ousted from the company shortly after that Series C.
On the site, Bench also recommends that customers consider Kick for their accounting needs. Kick states that those moving from Bench will be able to migrate their data for free and receive 20% off a Kick Plus Plan. Recently, Kick raised $9 million from OpenAI, General Catalyst, and angel investors, with the new capital going, in part, toward integrating new automation into the platform.
What they’re saying:
In a LinkedIn post, former Bench CEO and co-founder Ian Crosby reflected on the closure news and his departure from the company. While Crosby started the post by stating he’s “very sad today to see that Bench Accounting has shut down,” he went on to highlight where he thinks the company went wrong, saying, “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.”
My thoughts:
To me, there are really two stories here. The first is the failure of a FinTech that has seemingly had issues for some time. On that note, it is really interesting to see Crosby’s insight on what went wrong.
The other story here is about the customers impacted. Obviously, this no-warning shutdown of Bench is terrible news for the thousands of small businesses that relied on Bench’s services. This end-of-the-year timing could also further complicate matters — which is likely why Bench even recommends that businesses file a tax extension.
Overall, in a year that’s featured plenty of them, this is just another black eye for FinTech and a lose-lose all around.
Author
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