The Rise and Fall of Bench: A Wild Story of a VC-Backed Accounting Startup’s Last-Minute Revival
The article discusses the story of Bench, a fintech company that provides accounting services to small businesses. Here are the main points:
Background: Bench was founded in 2013 and had raised over $100 million from investors such as Bain Capital Ventures and Shopify.
Downfall: In December 2022, Bench suddenly shut down its operations and laid off all of its employees, citing financial difficulties. The company’s website displayed a notice recommending customers file for a six-month extension with the IRS to find a new bookkeeper.
Acquisition by Employer.com: Just days later, Employer.com acquired Bench in a fire sale. The acquisition was announced on December 30, and it involved no due diligence or transparency.
Uncertainty around sustainability: Despite the promises made by Employer.com’s CEO Matt Charney that the company will revive Bench and honor customer contracts, there are still concerns about whether the acquisition is sustainable. Employer.com has no direct experience in accounting, and acquisitions typically take months to complete.
Concerns about job security and service quality: Some former employees of Bench have been offered only 30-day contracts by Employer.com, which raises questions about their long-term employment prospects. Additionally, customers are worried about the quality of service they will receive from a company that has no prior experience in accounting.
Overall, the story of Bench highlights the challenges facing fintech startups and the importance of careful due diligence when making acquisitions.
