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Bench Accounting Shuts Down Abruptly, Leaving 600 Jobs at Risk and Clients Without Access to Financial Records, Founded in 2011 and Raised $113 Million

Dec 27, 2024, 09:58 PM

Bench Accounting, a Vancouver-based fintech company specializing in bookkeeping and accounting services, has abruptly shut down operations as of December 27, 2024. The company, which had been in business for 13 years, raised over $113 million in venture capital from notable investors including Bain Capital Ventures and Shopify. The shutdown comes just three days before the year-end, leaving many of its clients without access to critical accounting and tax documents. Reports indicate that the company did not provide any prior notice to its customers, some of whom had recently paid annual fees ranging from $3,000 to $5,000. The sudden closure is expected to affect approximately 600 employees, many of whom were reportedly laid off without warning. The circumstances surrounding the shutdown have drawn attention to the challenges faced by venture-backed startups, particularly those that replace founding CEOs with professional managers, as was the case with Bench. The company's last funding round took place in 2021, raising $60 million, and it had an estimated enterprise value of $232 million at that time. The abrupt end of Bench has prompted other accounting firms to offer assistance to its former clients during this critical period.