In a shocking turn of events, Vancouver-based startup Bench Accounting announced its abrupt shutdown, leaving customers scrambling for alternatives. However, in a surprising twist, the company has now been acquired by Employer.com, a San Francisco-based workforce management software provider. This acquisition raises questions about the future of Bench’s services and the implications for its loyal customer base.
The Shutdown Announcement
On December 29, 2024, Bench announced its sudden closure, which left many customers in a lurch, especially those who had recently signed up for services. The shutdown sparked significant backlash, with customers expressing frustration over the abruptness of the decision. Many had made advance payments, expecting uninterrupted service, only to find themselves without support just before the new year.
Customer Reactions
Entrepreneurs like Raman Morris, who had recently signed up for Bench, voiced their concerns on social media. Morris stated, “I don’t know how many customers they did this with and just ran off with their money.” Similarly, Matt Palackdharry, founder of Kinetic Talents, lamented on LinkedIn about the lack of communication and support during the shutdown process.
In response to the backlash, Bench suggested that customers transition to Kick, another accounting software provider, which offered an exclusive deal to assist those affected by the shutdown.
The Acquisition by Employer.com
Just days after the shutdown announcement, Bench revealed that it would be acquired by Employer.com. This acquisition was unexpected, especially since Employer.com had not previously offered accounting services. The company, which focuses on workforce management solutions, aims to integrate Bench’s bookkeeping capabilities into its existing platform.
Jesse Tinsley, a Bay Area entrepreneur and the driving force behind Employer.com, had recently acquired the domain and is known for his work with Recruiter.com and BountyJobs. Tinsley’s vision for Employer.com includes consolidating various workforce solutions under one umbrella, which may provide a new direction for Bench’s services.
Financial Background of Bench
Bench Accounting, which touted itself as North America’s largest bookkeeping service for small businesses, had raised over $100 million since its inception in 2012. The company secured a significant $60 million funding round in 2021, which was intended to expand its services beyond traditional accounting. At its peak, Bench employed over 650 people, showcasing its rapid growth in the fintech space.
However, the sudden shutdown and subsequent acquisition highlight the volatility that can exist within the startup ecosystem. As noted in a TechCrunch article, customers will have the option to port their data or continue their services under the new ownership, but the transition may not be seamless.
Lessons Learned
The story of Bench Accounting serves as a cautionary tale for startups and entrepreneurs. It underscores the importance of transparent communication with customers, especially during times of crisis. Additionally, it highlights the need for startups to have contingency plans in place to manage unexpected challenges.
As the Pacific Northwest entrepreneurial scene continues to evolve, it is crucial for startups to learn from the experiences of others. For those interested in staying updated on the latest developments in the startup world, consider signing up for GeekWire’s startup newsletter and exploring the GeekWire funding tracker and venture capital directory.
Conclusion
The acquisition of Bench Accounting by Employer.com may provide a lifeline for its customers, but it also raises questions about the future of the company and its services. As the startup landscape continues to shift, it is essential for entrepreneurs to remain vigilant and adaptable in the face of uncertainty.
Stay tuned for more updates on this developing story and other news from the Pacific Northwest startup scene.