Bench Shut Down, Then Acquired
Bench, a Canada-based accounting startup that offered software-as-a-service for small and medium-sized businesses, has abruptly shut down, according to a notice posted on its website.
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The company’s entire website is currently offline except for the notice, leaving thousands of businesses in the lurch. Bench touted having more than 35,000 U.S. customers just hours before it was shut down, according to a snapshot saved by the Internet Archive.
Bench, which had raised $113 million from high-profile backers such as Shopify and Bain Capital Ventures, developed a software platform to help customers store and manage their bookkeeping and tax reporting documents.
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Bench’s notice says its customers should file a six-month extension with the IRS to “find the right bookkeeping partner.” It also says customers will be able to download their data by December 30 and will have until March 2025 to do so.
I’ve avoided speaking publicly about Bench since just over 3 years ago when I was fired from the company I co-founded.
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In November 2021 I went out for what I thought would be a regular lunch with one of my board members. We had just raised a Series C and turned down a highly lucrative acquisition offer. We had budding partnerships with companies like Shopify that were interested in the technology we were developing. We were winning.
The board member thanked me for bringing the company to this point, but that they would be hiring a new professional CEO to “take the company to the next level.”
The San Francisco-based HR tech company Employer.com focuses on payroll and onboarding, in contrast to Bench, which specializes in accounting and tax. Employer.com’s chief marketing officer Matt Charney told TechCrunch the company will revive Bench’s platform and provide instructions for customers to log in and obtain their data.
12,000 small businesses who were left in a lurch just before tax time may have been saved.
This reminds me of the Synapse whose customers lost money when it failed but wasn’t FDIC insured. This is the risk of betting on startups for your financial needs.
Bench (Hacker News):
This acquisition ensures that Bench customers can continue relying on the same high-quality service they’ve always received, while also opening the door to future enhancements and capabilities powered by Employer.com’s extensive resources. Employer.com is committed to empowering small businesses with the tools and support they need to thrive, and Bench’s expertise in financial management aligns perfectly with that mission.
For Bench customers that want to look elsewhere, Pilot is doing free migrations from Bench to QBO, even if you don’t want to use Pilot. (So you can even take advantage of it if you want to instead DIY or work with some local firm.)
Previously:
- Mint.com Replaced by Credit Karma
- QuickBooks Desktop Subscriptions
- Intuit Sells Quicken to H.I.G. Capital
Update (2025-01-08): Nicholas C. Zakas (via Ruffin Bailey):
Here’s @bench clarifying that no one is getting refunds.
