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A clear picture ofBench ’s downfallis emerging thanks to new releasedbankruptcy filing .
The record show that the Canada - based inauguration , which ironically enough offered cloud account software program for small businesses , consistently struggled to reach lucrativeness . It burned through $ 135 million from its founding in 2012 to September 2024 .
By the time ofits crumble , Bench was drive to shut down due to a “ liquidity crisis , ” the records say . Bench had $ 800,000 left in John Cash in its Canadian write up while a separate account for its U.S. entity had less than $ 400,000 .
Bench had been making some progress on cut its burn in late years , the filing show . Improving finance was the principal missionary work of Bench ’s second CEO , Bench ’s former CFO who lease over in 2022 and began impart layoffs , according to former faculty .
For good example , Bench drop off almost $ 30 million on $ 42 million in revenue from March 2022 to March 2023 . But Bench rationalise its losses in half the next financial year while develop tax income to $ 49 million .
But that was n’t enough advance to hold on Bench ’s release from pile up . As the company skin , in June 2024 , Bench ’s biggest loaner , the private National Bank of Canada ( NBC ) , made over $ 40 million in loans available to Bench , per the filing .
That gave Bench some time to shop itself around for a sales event , the task of its third chief executive officer . And NBC appeared on display board : On December 12 , 2024 — just 13 days before Bench ’s collapse — NBC signed a new funding and patience agreement with Bench , the filing says , meaning it correspond to temporarily pause or change the inauguration ’s loanword quittance obligations .
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The records do n’t specify exactly why Bench shut down just two weeks later . A bank building — possibly NBC — called in Bench ’s venture debt , The Informationreported . Newcomerreportedthat NBC decline to make other concession as Bench was being shop around .
NBC did n’t reply to a request for comment from TechCrunch . NBC isowed $ 51 millionby Bench and this routine is proceed to accrue due to interest and other fee , the filing note .
Regardless , Bench is now on a raw track afterU.S.-based Employer.com suddenly announcedit planned on evolve the inauguration just 72 hour after its collapse . That process is base on an agreement that “ contemplates ” a closing day of the month of February 28 , 2025 , per the filing . Still , Bench ’s bankruptcy offers a window into the dangers of too much debt for startup . And venture debt lenders will playa grownup theatrical role in the flame sales and startup shutdownsthat are forecast to continue at a fast clip this year , expert say .
