The sudden shutdown of Bench, a well-funded accounting startup, shows why indie hackers don't like venture
capital
Big money, big promises, founders kicked out, customers abandoned, zero accountability — why bootstrapping wins again.
Bench, a major accounting platform, suddenly shut down, leaving customers struggling.
Bench’s original CEO says the shutdown was inevitable after VCs fired him and took a bad new direction.
The situation highlights the risks indie hackers face when VCs prioritize profit over purpose.
Bench, once the go-to accounting platform for thousands of small businesses, just disappeared. The sudden shutdown made everyone — Indie hackers, small business owners, you name it — fuming. Turns out, it's just another cautionary tale about working with VCs.
Bench started in 2012, it grew to help over 35K US businesses with bookkeeping and tax services. It raised $113M from big-name investors like Shopify and Bain Capital Ventures.
Fast forward to December 27, 2024, when Bench dropped a bomb on its customers with this notice:
“We regret to inform you that as of December 27, 2024, the Bench platform will no longer be accessible.”
Translation: “We’re out. Good luck with your taxes.”
Bench told users to file a six-month IRS extension and move their financial data to a competitor called Kick. But for many customers, that advice came way too late, leaving them scrambling.
Some indie hackers, including Daniel Vassallo, were affected.
Ian Crosby, Bench’s co-founder and original CEO, had a lot to say about the shutdown. He shared on Twitter how things went south for him in 2021. After raising a massive Series C and turning down a juicy acquisition offer, he got kicked out.
"The board member thanked me for bringing the company to this point, but that they would be hiring a new professional CEO to “take the company to the next level.”
I had been battling with some of the board members over strategy. They wanted me to take the company in a new direction that I thought was a very bad idea. I wanted to continue with what was working and with what our partners had signed on to distribute. I was intransigent."
Crosby resigned rather than fight, hoping the new leadership would prove him wrong. But the Bench crashed and burned, just as Crosby had predicted.
Proving what Crosby said was right about the timing of Bench's strategic change here's a comment from Kris Roadruck:
People on X are pissed. Some, like Amjad Masad try to blacklist Bench VCs from messing with other startups.
Levelsio also has put his two cents into the subject:
"Another founder kicked out by their VCs
You never hear this so common story because people are tied by NDAs or scared to get sued
Know that when you raise money you give up full control, important to choose well who you give that full control to"
At the end of the day, Bench’s story is a reminder for indie hackers of what can go wrong when profits and power trump purpose.
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How exactly in 2024 would anyone take a basic SaaS bookkeeping application to the "next level"? Change the background color of a sub-menu?
That said, the company likely did not have to make their service suddenly "no longer accessible". Many ways to have exited gracefully.
he sudden shutdown of Bench highlights the risks of venture capital-backed growth, with rapid expansion potentially leading to instability. Indie hackers, preferring bootstrapped approaches, warn that VC influence may compromise business sustainability. Bench’s collapse is a cautionary tale about prioritizing growth over long-term viability.
I never knew you could be fired by VC's, this is definitely a great example of accepting funding from the wrong people.
The founder can be fired by the Board if diluted significantly.
Honestly, I think more people moving away from VC backed startups to bootstrapped indie hacker projects is better for the long term. Part of the reason why I want to be independent in the first place is to be able to focus on what I want to accomplish with whatever product I’m working on, not to be pressured by investors to make a return as quickly as possible. That’s not stay I don’t want to make money, but I don’t care to be fabulously wealthy.
This story about Bench is a harsh reminder of the risks founders face when giving up control to VCs. It’s frustrating to see customers and small businesses left in the lurch due to profit-driven decisions. Indie hackers and bootstrapped startups may have slower growth, but at least they keep their purpose and control intact. A tough lesson for anyone navigating the startup world!
The sudden closure of Bench, a well-funded accounting startup, illustrates the risks associated with relying on venture capital (VC). Despite substantial funding, Bench's closure is indicative of unsustainable growth and profit models typically driven by VC demand. Indie hackers prefer bootstrapped ventures that are independent and grow steadily rather than scaling aggressively. A successful event like this demonstrates the allure of sustainable business practices, where control remains with founders, fostering resilience against market forces and investor expectations.
This story just confuses me. Did anyone use Bench? What was their service like prior to all of this going down??
This is such a harsh reminder of the risks tied to VC funding. While the allure of quick scaling is tempting, losing control over your company’s direction can have devastating consequences—not just for founders but for customers too. Indie hackers really value bootstrapping because it lets them stay true to their vision and serve their audience without interference. Bench’s story reinforces why slow, sustainable growth often wins in the long run.
Honestly, I think more people moving away from VC backed startups to bootstrapped indie hacker projects is better for the long term. Part of the reason why I want to be independent in the first place is to be able to focus on what I want to accomplish with whatever product I’m working on, not to be pressured by investors to make a return as quickly as possible. That’s not stay I don’t want to make money, but I don’t care to be fabulously wealthy.