Shutting Down Startups: A New Player Enters the Game

In the ever-changing world of startups, one thing is clear: not all ventures will succeed. A company named SimpleClosure is stepping in to help those that don't. It's a tough reality that many entrepreneurs face. The process of shutting down a startup can be incredibly complex and overwhelming. This is where SimpleClosure comes in. They offer a software platform designed to make the shutdown process easier and more efficient. It's like having a guide to help you through a difficult journey. SimpleClosure has been making waves in the startup world. It was founded by Dori Yona, who had a firsthand experience with the challenges of shutting down a company. He was tasked with creating a "shutdown analysis" for his last company, and the process was so complicated that he decided to build a solution. His idea was to create a software platform that could automate and streamline the shutdown process. The demand for such a service was high, and by February of 2024, SimpleClosure had already crossed seven figures in annualized revenue. SimpleClosure has also been attracting significant investment. In February of 2024, the company announced that it had raised $4 million, just six months after securing $1. 5 million in pre-seed funding. In total, SimpleClosure has raised $20. 5 million. The latest round of funding, a $15 million Series A, was led by TTV Capital and included participation from existing investors like Infinity Ventures, Anthemis, and Vera Equity. New backers included The LegalTech Fund and a group of unnamed angel investors. One notable new investor is Carta, a company that initially tried to offer its own startup winddown service but later decided to partner with SimpleClosure instead. Carta's decision to invest in SimpleClosure is a strategic move. The company had previously launched a service called Carta Conclusions, aimed at helping startups wind down. However, by December of 2024, Carta decided to retire this offering. Instead, it chose to invest in and partner with SimpleClosure. Carta's spokesperson, Amanda Taggart, explained that it made more sense to support a team focused on solving the shutdown problem rather than building an in-house solution. This partnership benefits both companies and, more importantly, the startups that need this service. The startup world is tough, and many companies fail. According to Dori Yona, about 90% of startups don't make it. Shutting down is a necessary part of entrepreneurship, even if it's not often talked about. SimpleClosure aims to help companies navigate this process smoothly. The company's revenue grew by 12 times in 2024 compared to the previous year, showing that there is a real need for their services. As the startup ecosystem continues to evolve, services like SimpleClosure will play a crucial role in supporting entrepreneurs through both success and failure.