Bench: A Story of Ambition and Resilience
Bench, an innovative accounting startup founded in 2016 by three individuals from Bain Capital Ventures, aimed to revolutionize the accounting industry through AI-driven compliance solutions. Their firewall product was designed to streamline audits and ensure regulatory adherence.
In a landmark deal, Bench was acquired by Venture Group, Bain Capital’s venture arm, in late 2023 for $150M cash, with an option for equity based on future performance. This acquisition was structured to retain employees if they remained with the new entity, but it inadvertently exposed sensitive data due to a firewall breach.
Following the acquisition and subsequent shutdown of Bench’s services in December 2023, caused by the need for infrastructure setup in Canada, the startup faced widespread criticism from the accounting community. Thousands of clients were left without support, leading to tax extensions as they navigated compliance issues.
Faced with mass resignations and public backlash, Employer.com emerged as an unexpected rescuer. The company offered to buy Bench for $270M cash plus 98% of its debt, aiming to restore operations by rescuing employees with 30-day contracts. However, this move sparked concern over the abrupt termination of employees and potential service quality disparities.
The acquisition’s rushed nature and post-crisis uncertainties underscore challenges in sustaining Bench’s operations. The attempt to revive the startup highlights both the resilience of the original team and the complexities of managing a failed business in an uncertain market landscape.
Bench’s story is a testament to ambition, technology, and the fragility of innovation when intertwined with organizational restructuring and acquisition complexities.
