▼ Summary
– Carta launched a startup winddown service called Carta Conclusions in February 2024 but retired it by December, opting to invest in SimpleClosure instead.
– SimpleClosure, a startup automating the shutdown process for companies, raised a $15M Series A with Carta as a new investor, among others.
– Carta shifted strategy to partner with SimpleClosure, offering its customers a free consultation and 10% discount on SimpleClosure’s services.
– SimpleClosure’s founder, Dori Yona, created the platform after experiencing the complexity of shutting down a company, leading to rapid revenue growth.
– SimpleClosure’s revenue grew 12x in 2024, reflecting high demand for its services in a market where 90% of startups fail.
Navigating the complex world of startup closures just became simpler, thanks to strategic shifts in the equity management space. Carta, known for its equity management platform, recently made waves by exiting its own winddown service and instead investing $15 million in SimpleClosure, a startup specializing in streamlined shutdown solutions.
Initially launched in February 2024, Carta’s in-house closure service, Carta Conclusions, was retired by December. The company recognized that partnering with an expert in the field—rather than building internally—was the smarter move. “It made more sense to invest in a team entirely dedicated to solving this challenge,” explained Amanda Taggart, a Carta spokesperson. To ease the transition, Carta is offering its customers free consultations and a 10% discount on SimpleClosure’s services.
SimpleClosure’s origin story stems from founder Dori Yona’s firsthand experience. While winding down a previous venture, he encountered the labyrinthine process of shutdown analysis—a task so cumbersome it inspired him to create an automated platform. The demand was immediate, with the company hitting seven figures in annualized revenue within months of launch.
The startup’s rapid growth is reflected in its funding trajectory. After securing $1.5 million in pre-seed capital, SimpleClosure raised an additional $4 million in early 2024. The latest $15 million Series A, led by TTV Capital, brings its total funding to $20.5 million. Notable participants include Infinity Ventures, Anthemis, and Vera Equity, alongside new backers like The LegalTech Fund and several angel investors.
With 90% of startups failing, Yona emphasizes that closure is an inevitable yet overlooked aspect of entrepreneurship. SimpleClosure’s mission is to provide a structured, efficient exit path for companies that don’t succeed. Revenue skyrocketed 12x year-over-year in 2024, proving that even in failure, there’s opportunity for innovation.
(Source: TechCrunch)
