A clear picture Bench Emerging thanks to the newly released Bankruptcy filings.
Records show that Canada -based startups, which have offered cloud accounting Software Feware for small businesses, constantly struggle to reach profitability. It burned from $ 135 million in its founding from 2012 to September 2024.
By the time of It fallRecords say the bench was forced to close due to the “liquidity crisis”. The bench had a $ 800,000 cash left in its Canadian account while its U.S. A separate account for the entity, 000 was less than 400,000.
Files show that the bench has made some progress on cutting its burn in recent years. The second CEO of the bench was the main mission of the former CFO of the bench, who took over in 2022 and began to split, According to the former staff.
For example, the bench lost about $ 30 million in Million 42 million revenue from March 2022 to March 2023. But the bench reduced its loss in the next financial year, while revenue increased to 49 million.
But it was not enough to prevent the loss of the bench from collecting. As the company struggled, in June 2024, the Bench’s largest Nder, a private national bank of Canada, the Million available to the bench, made a loan of over 40 million, According to the filing.
Who gave the bench some time to buy around for sale, Its third CEO’s work. And NBC appeared on the board: December 12, 2024 – 13 days before the fall of the bench – NBC signed a new fund and tolerance agreement with the bench, meaning that it agreed to temporarily pause or modify the payment of startup loan.
The records do not exactly specify why the bench is closed only after two weeks. A bank – possibly n nbc – bench adventure debt, called information Registered. Newcomer Registered The NBC refused to do other concessions as the bench was purchased around.
The NBC did not respond to the request for a Techcranch comment. NBC is Million is 51 million left By the bench and this number continues to receive due to interest and other fees, filing notes.
Regardless, the bench is on a new way later US-Based Employer.com announced suddenly He plans to receive a startup 72 hours after his collapse. The process is based on the contract that “contemplates” the expiry date of February 28, 2025 according to the filing.
Nevertheless, the bankruptcy of the bench offers a window in the risk of further debt for startups. And the adventure debt lender will play A big role in fire sales and startup shutdowns Experts say that this year is predicted to continue on a quick clip.
https://techcrunch.com/wp-content/uploads/2025/01/bench-employees.png?w=1169
