The bench burned over $ 135 million before it turned off

A more clear picture of Dowry appears thanks to the newly established Shared for bankruptcyS

Records show that Canada -based startup, which ironically offers cloud accounting software for small business, is constantly struggling to reach profitability. It burned in $ 135 million since its founding in 2012 to September 2024.

During his collapseBench was forced to close due to “liquidity crisis,” the records say. Bench had $ 800,000 in her Canadian account, while a separate account of his US formation had less than $ 400,000.

Bench has made some progress in reducing his burning in recent years, the documents show. Improvement of finance was the main mission of Bench’s second CEO, the former Bench Financial Officer, which took over in 2022 and began to conduct abbreviations, According to ex -staffS

For example, Bench has lost nearly $ 30 million in revenue from $ 42 million from March 2022 to March 2023. But Bench has reduced his losses over half of the next fiscal year, while increasing revenue to $ 49 million.

But it was not enough improvement to stop the bench losses from accumulation. While the company fought in June 2024, the largest Bench lender, the private National Bank of Canada, made over $ 40 million loans available for Bench, according to the submissionS

This gave some time on the bench to shop for sale, the task of his third CEOS And NBC appeared aboard: On December 12, 2024 – just 13 days before Bench’s collapse – NBC signed a new financing agreement and a goal with Bench, which means that he agreed to suspend or to Changes the obligations to repay the start -up loan.

The records do not specify exactly why the bench is only turned off two weeks later. Bank – Probably NBC – Called into Bench’s risk debt, information reportedS Newcomer reported The fact that the NBC refused to make other discounts as the bench was shopping around.

NBC did not respond to a request for comment from TechCrunch. Nbc is owes $ 51 million Bench and this number continues to accumulate due to interest and other fees, the submission notes.

Nevertheless, the bench is already on a new road after US -based employer.com suddenly announced He plans to acquire the launch only 72 hours after his collapse. This process is based on an agreement that “considers” the closure date on February 28, 2025 on submission.

However, Bench’s bankruptcy offers a window in the dangers of too much debt for start -ups. And risk debt creditors will play Great role in fire sales and stop starting It is supposed that they will continue with a quick video this year, experts say.