Bench, a prominent accounting startup, has abruptly shut down, leaving over 35,000 businesses searching for alternatives like Kick.
Bench’s Abrupt Shutdown Leaves Thousands of Businesses Scrambling
In a sudden and shocking announcement, Bench, a Canada-based accounting startup serving small and medium-sized businesses, has ceased operations. A notice on the company’s website, dated December 27, 2024, informed users that the platform would no longer be accessible.
“We regret to inform you that as of December 27, 2024, the Bench platform will no longer be accessible,” the notice read. “We know this news is abrupt and may cause disruption, so we’re committed to helping Bench customers navigate through the transition.”
A Sudden Halt with Widespread Impact
Bench’s website, once a hub for over 35,000 U.S.-based businesses, is now offline except for the notice. The sudden shutdown has left customers grappling with the loss of a platform they relied on for storing critical bookkeeping and tax documents.
The company’s downfall is especially surprising given its impressive $113 million fundraising history, supported by prominent investors like Shopify and Bain Capital Ventures. Despite these resources, Bench has not responded to media inquiries, fueling speculation and frustration among its users.
Shock and Outrage Among Customers
The abrupt closure has left current and former users stunned. Justin Metros, co-founder and CTO of Radiator, expressed disbelief at losing years of accounting data stored on Bench’s platform. “I’ve never seen anyone just shut down like that. That’s crazy,” Metros said, learning about the closure through media reports.
Other customers expressed their frustrations on social media. One user expressed anger over migrating from QuickBooks to Bench shortly before the announcement.
Bench has advised customers to download their data by December 30, 2024, with access available until March 2025. Additionally, the company suggested filing a six-month IRS extension to allow time to find alternative bookkeeping solutions.
The Rise of Kick: A Recommended Alternative
In its notice, Bench recommended Kick, a fledgling accounting startup, as an alternative platform for users. Kick recently secured $9 million in seed funding from investors like OpenAI and General Catalyst.
Kick’s CEO and founder, Conrad Wadowski, assured Bench users that his company was working to help them regain control of their financial data. “As you saw on the website, we’re moving fast and are available to support many of Bench’s customers with their bookkeeping needs,” Wadowski told TechCrunch. However, he declined to comment on any prior business relationship between Kick and Bench.
A Legacy of Success and Turmoil
Founded in 2012, Bench once employed over 600 staff and was a TechStars accelerator graduate. The company’s last major funding round, a $60 million Series C in 2021, marked the end of an era as co-founder and CEO Ian Crosby exited the firm shortly after.
Crosby, now vocal about the company’s demise, blamed Bench’s board for replacing him with “a new professional CEO” who took the company in a different direction. On LinkedIn, Crosby lamented the decision, stating, “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.”
A Cautionary Tale for Startups
Bench’s collapse serves as a stark reminder of the volatile nature of the startup ecosystem. Despite substantial financial backing and a solid customer base, internal leadership changes and strategic missteps can destabilize even the most promising ventures.
For customers, the lesson is clear: diversifying reliance on a single platform and maintaining local backups of critical data are essential safeguards in today’s digital economy.
Also Read: The 7 Most Fascinating Humanoid Robots of 2024
