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In the crazy world of startups, the line between genius and madness gets blurry and we’re left with stories of innovation, ambition, and drama. One such tale has unfolded at Bench Accounting, a Canadian fintech startup where the founding CEO was fired by the board.
What followed was a public spectacle that put the company in the spotlight and revealed a tangled web of competing narratives around leadership, governance, and accountability.
The trigger? A viral email from the fired CEO claiming betrayal and wrongful termination. But Eric Newcomer, founder of the newsletter Newcomer, dug deeper. His reporting includes first-hand accounts from former board members and executives and gets to the meat of the story.
What he found wasn’t a simple tale of good guys and bad guys but a complex drama of trust, power, and the challenges of scaling a startup.
For readers, the question remains: How did a company get to this point? And what does this mean for leadership in high-growth companies?
The Core of Newcomer’s Investigation
Eric Newcomer’s tweet introduces his reporting on the Bench saga:
“Here’s the story of Bench Accounting, a Canadian startup made famous by a fired founder’s viral email about his breakup with his board of directors.
I’ve talked to former board members and former executives to get to the bottom of what happened. While the former CEO’s account isn’t entirely without merit, I’ve learned the CEO had lost the trust of some of the startup’s executives by the time the board intervened. Executives wrote a letter asking for an investigation into the founder’s conduct as CEO.
Still, there’s a strong case to be made that Bench’s only path to success was through its founding CEO. This is a complicated story with no clear heroes or villains.
This is also the first time I’ve received a legal threat since I started this newsletter over four years ago.”
Eric Newcomer (@EricNewcomer)
Here’s the story of Bench Accounting, a Canadian startup made infamous by a departed founder’s viral account of his breakup with his board of directors. I’ve talked to former board members and former executives to piece together what happened. While the former CEO’s account is…
— Eric Newcomer (@EricNewcomer) January 14, 2025
Newcomer’s reporting shows a leadership team split on the CEO. Supporters of the CEO point to his role in turning Bench into a fintech star, his vision and drive as key to the early success. Critics point to internal issues: mismanagement, strained relationships with key team members, and a complete breakdown of trust that forced the board to step in.
The Concerns Behind the Board’s Decision
Bench’s story is the story of scaling a startup. While the CEO was a visionary, his management style caused internal friction. Former executives frustrated with his approach sent a formal letter to the board asking for an investigation into his conduct. Among their concerns:
Financial Management: Like many startups Bench had burn rate and profitability issues.
Missed Targets: Key metrics were not met and investor confidence was waning.
Governance: Some executives felt the CEO’s decision-making was opaque and unaccountable.
But critics of the board’s decision argue that removing the founder shut down his strategic vision—a vision that was the foundation of Bench’s early growth and the precursor to its fintech innovations. They say removing such a key figure risked gutting what made the company unique in a crowded market.
Analyzing Industry Reactions
The Bench saga has sparked a lot of debate in the startup world and highlights the leadership, accountability, and governance trifecta. Responses to Newcomer’s reporting:
Ryan Denehy (@DenehyXXL):
In pretty much every case where a founder/CEO is fired (for anything other than malfeasance) it comes down to some mix of:
— Ryan Denehy (@DenehyXXL) January 14, 2025
– burning too much cash
– consistently missed forecasts
– lack of a clear or believable plan to deliver value
– weak leadership of some variety
Denehy’s tweet frames the Bench CEO’s firing within the broader startup landscape. He doesn’t directly criticize the board but his list makes it clear what’s at stake with performance and leadership.
Naomi Lucas (@RealNaomiLucas):
Reports like these are extremely useful for instruction, for guidance and as a cautionary tale to other founders out there. Thank you for sharing.
— Naomi Lucas (@RealNaomiLucas) January 14, 2025
Naomi Lucas sees this as a teachable moment. Her response makes it clear how valuable Newcomer’s reporting is in creating transparency and learning in the founder community.
@FUMoneyyyyy:
This is still a take over / force out even in the light most favorable to the VCs. They met behind the CEOs back and then presented some form a unified ultimatum in a surprise meeting.
— (@FUMoneyyyyy) January 14, 2025
That’s not how you handle legitimate complaints
…
unless you are a VC.
This tweet criticizes the board’s process and says it was a power play by the investors. Founders often feel this way about VCs who have so much control over the company.
Jenny Chao (@jenny_chao):
stellar reporting
— Jenny Chao (@jenny_chao) January 14, 2025
Jenny Chao commends Newcomer’s investigative rigor, reinforcing the importance of nuanced journalism in unpacking corporate disputes.
The Stakes: Bench by the Numbers
Before we get into the drama of the Bench Accounting CEO’s departure, let’s look at the scale of the company and the stakes. With millions in funding, solid revenue, and a growing team, Bench was on track to be a big fintech player. Here are the numbers that make this corporate soap opera so big.
Bench Accounting’s profile makes this story matter:
- Funding: Over $60 million raised from prominent investors.
- Revenue: Estimated tens of millions annually, solidifying its role as a key player in fintech.
- Team Size: At its peak, Bench employed over 400 people.
These numbers make it clear what’s at stake—not just for the founder but for the employees, customers, and investors tied to Bench’s success.
Lessons from the Bench Saga
The Bench Accounting saga is a whirlwind of leadership conflicts but it also has lessons for anyone in the startup world. From vision vs execution to board dynamics to founder-VC relationships, these lessons apply beyond Bench.
The Balance Between Vision and Governance
Founders are the creative force behind startups but as companies grow they need to adapt to new challenges. The Bench CEO’s experience is the difficulty of balancing visionary leadership with operational execution.
Board Dynamics
The Bench board met without the CEO and presented an ultimatum. That’s the complexity of governance. Trust and transparency are key and when broken can lead to messy outcomes.
Founder-VC Relationships
The Bench case shows the power imbalance between founders and investors. VCs bring valuable resources but their influence can clash with a founder’s vision especially during times of financial stress.
Bench Accounting: A Startup Saga of Leadership, Governance, and Venture Capital
The Bench Accounting story is more than a CEO being fired—it’s a mini-me of the challenges startups face as they grow. It’s the balance between leadership and governance, creativity and accountability, and the stakes of venture capital.
Eric Newcomer’s reporting reminds us there are no easy answers in corporate drama. Heroes and villains are rarely black and white and the lessons only emerge in hindsight. For founders, boards, and investors the Bench story is a warning and an opportunity to reflect on what it takes to navigate the startup world.
Last Updated on by Saket Kumar
