The bench was burned through $ 135 million before closing

A clearer picture for Seat It arises thanks to its recent release Disciplinary files.

The records show that the start of the Canada -based operating, which was irony that it was sufficient for cloud accounting programs for small companies, has been constantly faced to reach profitability. It was burned through $ 135 million of its founding in 2012 to September 2024.

By time Its collapseThe records say the seat was forced to close due to the “liquidity crisis”. The bench remained 800,000 dollars in its Canadian account, while it was a separate account from its American entity less than $ 400,000.

The bench has shown some progress in cutting it in recent years, as shown in deposits. Improving financial affairs was the main task of Bench, the former financial manager of Bench who took office in 2022 and began to perform workers’ demobilization operations, According to the previous employees.

For example, Bench lost approximately $ 30 million over $ 42 million of revenue from March 2022 to March 2023. But Bench reduced its losses in the next fiscal half of the year as it was increasing revenue to $ 49 million.

But this was not sufficient to stop the casualties of the bench from accumulation. While the company fought, in June 2024, the largest lender in Bench, the National Bank of Canada (NBC), presented more than $ 40 million in the seat’s loans available, For all deposits.

Which gave the bench some time to shop for sale, The mission of its third CEO. NBC appeared on the plane: On December 12, 2024 – just 13 days before the collapse of a seat – NBC signed a new financing and patience agreement with a seat, which means that he agreed to stop temporarily or amend the obligations of startup loans.

The records do not specify exactly the reason for closing the bench after just two weeks. The bank is called – perhaps NBC – in the Bench project debts, information I mentioned. New expatriate I mentioned That NBC refused to make other concessions as the bench was marketed.

NBC did not respond to a request for comment from Techcrunch. NBC is Debtor With the bench, this number continues to accumulate due to interest, other fees, and deposit notes.

Regardless, the bench is now on a new track yet The employer was suddenly announced in the United States I planned to start starting only 72 hours after its collapse. This process depends on the “thinking” agreement on the date of the closure of February 28, 2025, according to the deposit.

However, Bench bankruptcy provides a window on the risk of a lot of debts for startups. The adventure debt lender plays A major role in firefighting sales and startup closure It is expected to continue with a quick clip this year, says experts.