Bench’s Sudden Shutdown Shakes Startup Sector
Canada-based accounting startup Bench has abruptly shut down its services. A notice on the company’s website stated, “From December 27, 2024, the Bench platform will no longer be available. We understand this news may come as a surprise and cause inconvenience to our users. We are committed to assisting with a smooth transition process.” The shutdown has left over 35,000 U.S. customers in a difficult position. Customers have been given time until March 2025 to download their data. The company has recommended that users transition to a new accounting startup, “Kik.”
Bench had raised $60 million in funding in 2021. However, the company's founder and former CEO, Ian Crosby, has claimed that after being removed by the board and replaced with a new CEO, the company took a different direction, resulting in the current situation.
The closure of Bench serves as a cautionary tale, not only for its customers but also for the entire startup ecosystem. Crosby has called it a lesson for investors, saying, “Changing founders will never improve a company. It never works.”
