Inside the wild fall and last-minute revival of Bench, the VC-backed accounting startup that imploded over the holidays

Bench faced a shutdown, but was revived by Employer.com.

: Bench, an accounting startup backed by Bain Capital Ventures and Shopify, unexpectedly shut down in late 2024 but was quickly acquired by Employer.com. The shutdown was driven by automation struggles, management changes, and financial issues. Despite the abrupt closure, media attention led to the acquisition by Jesse Tinsley's HR tech firm, Employer.com, which intends to restore services and rehire staff. However, doubts linger regarding the sustainability of this rapid acquisition.

Bench, a Canadian accounting startup backed by investors like Bain Capital Ventures and Shopify, faced a chaotic collapse on December 27, 2024, when it suddenly shut down its website and terminated its employees without notice. Automation challenges and a series of issues within the executive team contributed to mounting difficulties, leading to customer dissatisfaction and financial distress, ultimately resulting in the abrupt closure.

The shutdown drew significant media attention, paradoxically aiding in its unexpected revival as Employer.com, led by CEO Jesse Tinsley who quickly negotiated the acquisition. This acquisition was announced just a few days after the closure, with Employer.com planning to restore operations and rehire several former Bench employees to continue serving the company's 12,000 customers.

Employer.com has promised to extend job offers to a large number of former Bench staff and honor all existing customer contracts. However, given the company's lack of prior experience in accounting and the speed of the acquisition process, there are uncertainties regarding the quality of service and long-term sustainability under the new ownership.

AccountingAutomationAcquisition