Canada-based accounting startup Bench, which provided software-as-a-service to small and medium-sized businesses, has abruptly shut down, according to a notice posted on its website.
“Unfortunately, after December 27, 2024, you will no longer have access to the Bench platform,” the notice states. “We know this news is sudden and can be disruptive, which is why we are committed to helping Bench customers navigate the transition.”
The company's website is now completely offline, except for notifications, leaving thousands of businesses in limbo. Hours before it was shut down, Bench advertised having more than 35,000 customers in the U.S., according to a snapshot stored in the Internet Archive.
Bench, which has raised $113 million from high-profile backers including Shopify and Bain Capital Partners, has developed a software platform that allows customers to store and manage their bookkeeping and tax filings.
This move is a shock to current and former customers. Justin Metros, Radiator's co-founder and chief technology officer, says that although he no longer uses the platform, he still has several years' worth of accounting and tax documents stored on the site. said. He learned about the shutdown from TechCrunch.
“I've never seen anyone close down like that,” Metros said. “That's strange.”
Some people have expressed their concerns on social media, with one person posting that they had just migrated from QuickBooks to Bench and were “frustrated as a customer.”
Bench's notice says customers must apply for a six-month extension from the IRS to “find a suitable bookkeeping partner.” Customers will be able to download their data by December 30th and will be able to download it until March 2025.
The notice recommends customers migrate to Kick, a new accounting startup that announced a $9 million seed raise in October 2024 in a round led by OpenAI and General Catalyst. Kick CEO and founder Conrad Wadowski posted a message on LinkedIn to former Bench users about how Kick is “working to put finance back in your hands.”
Bench did not respond to TechCrunch's request for comment as of press time. Wadowski did not directly respond to TechCrunch's questions about details of any agreements or other business relationships he may have had with Bench prior to the shutdown.
“As you can see on our website, we are working quickly and are able to support many Bench customers with their bookkeeping needs,” he told TechCrunch.
Bench was founded in 2012 and employed more than 600 staff, according to a snapshot of its “About page.” The startup was backed by investors including IT firm Sage, Contour Venture Partners, and Altos Ventures. He was also a member of the TechStars accelerator.
Bench last raised $60 million in a Series C round in 2021. Shortly after, co-founder and CEO Ian Crosby resigned.
Mr. Crosby posted on LinkedIn today that he was “very sad” to see Mr. Bench shut down, and said an anonymous board member had tried to bring in a “new professional CEO” to take Mr. Bench in a different direction. He claimed to have been replaced by a member.
“We hope Bench's story serves as a warning to VCs who think they can 'upgrade' a company by replacing the founder. That will never work,” Crosby wrote.