News Summary

Canadian cloud accounting startup Bench has filed for bankruptcy after burning through $135 million since its founding in 2012. The company, which provided accounting software for small businesses, struggled to achieve profitability and faced a liquidity crisis by September 2024. Despite efforts by its second CEO to cut losses and increase revenue, Bench’s financial situation continued to deteriorate. In an attempt to salvage the company, Bench’s third CEO sought a sale, and the National Bank of Canada (NBC) provided $40 million in loans. However, NBC eventually called in the venture debt, leading to Bench’s shutdown. Shortly after its collapse, US-based Employer.com announced plans to acquire Bench, aiming for a closing date of February 28, 2025. This situation underscores the risks associated with high debt levels for startups and the significant role of venture debt lenders in the industry.