Thanks to the newly released bankruptcy application, a clear photo of the fall of the bench has appeared.
The record indicates that emerging companies based in Canada, which provide cloud accounting software for small businesses, are struggling to reach profitability. 。 From the foundation in 2012 to September 2024, it burned $ 135 million.
The record states that the bench had been forced to close due to the “fluid crisis” by the time of the collapse. The bench had $ 800,000 cash on the Canadian account, but another account in the US entrepreneur was less than $ 400,000.
Filing has shown that the bench has been advancing to some extent in recent years by reducing burns. According to the former staff, the financial improvement was the main mission of the former CFO of the bench, the second CEO on the bench, which began to take over in 2022.
For example, a bench lost nearly $ 30 million for $ 42 million from March 2022 to March 2023, but the bench reduced the loss in half of the next fiscal year and increased profits to $ 49 million. I did it.
But that was not enough improvement to stop the loss of benches. In June 2024, the company, Canada National Bank, earned more than $ 40 million on the bench in June 2024.
As a result, the bench gave time to shop to sell the third CEO task. NBC boarded: December 12, 2024 -Only 13 days before the collapse of the bench -NBC signed a new financing with the bench and forgetful contracts, and the filing temporarily the startup loan repayment obligation. I agree to pause or change.
The record does not accurately specify the reason why the bench shuts down just two weeks later. Banks (perhaps NBC) reports that they are called by bench venture debt. NEWCOMER reported that NBC has refused other concessions because the bench is shopping.
The NBC did not respond to the comment request from TechnoCrunch. The NBC has $ 51 million on the bench, and this number has been incurred for interest and other rates.
Anyway, the bench is now on a new path after announcing that it has plans to get a startup just 72 hours after the collapse of the US -based employer.com. The process is based on a contract to “ponder” the deadline for February 28, 2025 for each filing.
Nevertheless, the bankruptcy on the bench offers windows in the danger of too many debts for the startup. Experts say that venture debt lenders play a major role in firefighting and startups that are expected to continue with this year's high -speed clip.