Bench, a Canadian-based accounting startup that provides software-as-a-service (SaaS) for small and medium-sized businesses, has suddenly closed, according to a notice posted on its website.
“We regret to inform you that the Bench platform will no longer be accessible starting December 27, 2024,” the notice reads. “We know this news may be sudden and disruptive, so we are committed to helping Bench customers navigate the transition.”
The company’s entire website is currently offline except for notice, leaving thousands of businesses struggling. Bench touted having more than 35,000 U.S. customers just hours before its shutdown, according to a snapshot stored in the Internet Archive.
Bench, which has raised $113 million from high-profile backers like Shopify and Bain Capital Ventures, has developed a software platform that helps customers store and manage their ledgers and tax filing documents.
This move is a shock to current and former customers. Justin Metros, co-founder and CTO of Radiator, said that although he no longer uses the platform, his company’s years of accounting and tax documents are still stored on the site. He learned about the shutdown through TechCrunch.
“I’ve never seen anyone shut down like that,” Metros said. “That’s crazy.”
Others have just migrated from QuickBooks to Bench and are airing their concerns on social media, with one posting: “As a customer, I’m angry.”
The Bench’s notice states that customers must apply for a six-month extension from the IRS “to find an appropriate bookkeeping partner.” It also said customers will be able to download their data until December 30 and will be able to download it until March 2025.
The notice recommends migrating customers 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 get your finances back on track.”
The Bench did not respond to TechCrunch’s request for comment as of press time. Wadowski did not directly respond to questions from TechCrunch about details of any possible contracts or other business relationships he had with Bench prior to the shutdown.
“As you can see on our website, we are moving quickly and can support the bookkeeping needs of many of our Bench customers,” he told TechCrunch.
Founded in 2012, Bench employs more than 600 people, according to a snapshot on its “About” page. The startup received support from investors including IT companies 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. Co-founder and CEO Ian Crosby left soon after.
Crosby posted on LinkedIn today that he was “very sad” to see Bench close, claiming it had been replaced by an unnamed board member who wanted to bring in a “new professional CEO” to take Bench in a different direction.
“I hope Bench’s story serves as a warning to VCs who think they can ‘upgrade’ their companies by replacing the founders. It never works,” Crosby wrote.
