Failed fintech startup Bench racked up over $65 million in debt, documents reveal

Bench, the accounting startup that is Imploded on vacationThe January 7 bankruptcy filing in Canada reveals the massive debt, documents seen by TechCrunch show.

Filing- for a bench and other For 10 sheetsBench’s original name — shows that by the end of Bench’s life it had $2.8 million in cash but $65.4 million in liabilities. (TechCrunch converted bankruptcy filing data from Canadian to US dollars at a rate of $1 USD to $1.44 CAD.) Founded in 2012, Bench raised $113 million from investors such as Shopify and Bain Capital Ventures.

Most of Bench’s debt — $50 million — is owed to the National Bank of Canada, one of Canada’s largest commercial banks. More than 85% of those loans are unsecured, meaning banks have little collateral to claim against loans that are now bench defaulted. That debt may have contributed to the abrupt shutdown of Bench: Tech Publications newbie news That NBC refused to discount Bench because it was being shopped for sale. NBC did not immediately respond to a request for comment.

The bankruptcy filings also reveal the financial obligations of the bench’s VC investors, split between convertible notes (which are converted into equity) and direct shareholder loans. Bench is owed $1.3 million by Bain Capital Ventures, whose partner Sarah Hinkfuss was appointed to Bench’s board in 2023. According to a press release. Bench owes another $1.2 million to Canadian VC Innovia Capital, whose executive-in-residence is Adam Schlesinger. is appointed As the last CEO to bench, the filing shows. Contour Venture Partners, a New York-based VC which led Bench’s $60 million Series C round, owed about $750,000. California-based Altos Ventures, another investor, is owed $777,000. All of these VC-related loans are unsecured, the filing states.

Bench’s other debts include $1.8 million in severance pay for former employees, the documents say. TechCrunch previously reported this On December 27, the bench staff was suddenly let go without giving any notice or termination. (Bench’s new owner, Employer.com, said It rehired a large number of workersBut told TechCrunch they’re on a temporary 30-day contract while the bench works out its issues.)

Former executives are also owed hundreds of thousands of dollars in severance pay by Bench: CEO Jean-Philippe Durios, CRO Todd Daum and CFO Mor Lacritz are listed in the filing. Lacritz’s LinkedIn indicating that Bench had annual recurring revenue of approximately $50 million.

Finally, bankruptcy filings show Bench owes Canadian real estate agency Morgard $4 million in unpaid rent, presumably for its offices. At its peak, the bench employed over 600 people. Outside of money owed on employees, office space and about $1.5 million (according to our back-of-the-envelope math), the filings don’t show how the rest of the money was spent, due to a scattering of expected lenders like the SaaS business software provider.

As the bench works through bankruptcy, it is also in process being achieved By San Francisco-based HR technology company Employer.com. However, its customers also told TechCrunch Employer.com is looking to launch their data to the employer, or risk losing it.

Gary Levin, head of corporate development at Employer.com, told TechCrunch that a Canadian court is overseeing the bench’s bankruptcy and will oversee the distribution of money to creditors. He emphasized that Employer.com has a strong balance sheet that allows it to invest significantly in the bench going forward.