Hey — It’s Nico.

Welcome to another Failory edition. This issue takes 5 minutes to read.

These are the 5 most important things:

• Bench, a bookkeeping startup shut down during the holidays and was acquired three days later — learn why below.

• A guide to AI prototyping for non-coders.

• Sillicon Valley startups received over half of all global VC funding in 2024.

• KoBold, a mining startup backed by Bill Gates and Jeff Bezos, raised $537 million.

• CES 2025 is currently happening. — check the most important trends and announcements below.

Let’s get into it.

This Week In Startups

🔗 Resources

A guide to AI prototyping for non-coders.

The state of Venture Capital in 2024.

Sam Altman’s reflections on OpenAI, AGI and the future of AI.

📰 News

Anthropic is in advanced talks to raise $2 billion, valuing it at $60 billion.

VC investment in emerging markets decreased by over 40% last year.

Sillicon Valley startups received over half of all global VC funding in 2024.

Microsoft plans to invest $3B in AI and Cloud in India.

💸 Fundraising

KoBold, a mining startup backed by Bill Gates and Jeff Bezos, raised $537 million.

Toyota invested $44.4 million in Japanese space startup Interstellar Technologies to mass-produce rockets.

Whatnot, the livestream shopping app, raised $256M.

NomuPay, a Dublin-based fintech, raised $37M.

Fail(St)ory

Holiday Layoffs and a Twist

Last week, Bench, a Canadian startup offering accounting and tax services for small and mid-sized businesses, made headlines with its sudden shutdown—and an equally surprising revival just a couple days later.

The abrupt closure on December 27 left hundreds of employees without notice during the holiday season, sparking online outrage and heated discussions about corporate responsibility.

What Was Bench: Bench, founded in 2012, was positioned as a tech-savvy bookkeeping platform designed to simplify accounting for small and medium-sized businesses.

By the time of its closure, it claimed over 12,000 customers and had raised $113 million in funding. It offered a blend of human and AI-driven bookkeeping services, aiming to bridge traditional accounting with cutting-edge technology.

Despite its promising premise, Bench struggled to deliver on its vision. Building a scalable platform while maintaining the personal touch of human bookkeepers proved far more challenging than anticipated. The company’s push to integrate AI tools led to delays and customer dissatisfaction, highlighting the gap between theory and practical execution in automation.

The Numbers:

• 📅 Founded in 2012.

• 💰Raised over $113 million.

• 🧍‍♂️Had over 12,000 customers.

Reasons for Failure: 

• Automation Challenges: While automation seemed like a promising way to streamline operations and cut costs, implementing AI tools in accounting tasks proved far more difficult than expected. Many processes that seemed easy to automate at first, turned out to be much more complicated than expected.. The delays caused by these inefficiencies frustrated customers and led many to abandon the platform. 

• Struggling to Balance Human and Tech Services: Bench’s hybrid model—combining scalable technology with personalized human bookkeeping—was ambitious but ultimately unsustainable. Building a robust tech platform while simultaneously offering hands-on services created operational strain. Managing both sides effectively required resources and coordination that Bench couldn’t consistently deliver, leading to service breakdowns and scalability issues.

• Leadership Turmoil: Leadership instability exacerbated Bench’s problems. Ian Crosby, the co-founder and original CEO, left in 2021 following disagreements with the board over strategic decisions. Crosby accused board members of forcing him out in favor of a “professional CEO,” a move he later criticized on LinkedIn as a cautionary tale for investors attempting to “upgrade” companies by sidelining founders. His departure, coupled with the leadership changes, likely destabilized the company at a critical time.

• Financial Mismanagement: Bench’s financial practices were a key factor in its downfall. The company burned through its funding at an unsustainable rate, accumulating significant debt while struggling to maintain cash flow. The tipping point came when a bank called in its venture debt, leaving Bench with no choice but to shut down abruptly. 

The Unexpected Revival 

The media coverage of Bench’s closure inadvertently became its savior. Jesse Tinsley, CEO of Employer.com—a recently launched HR tech platform by Recruiter.com —noticed the news while on vacation. Within 48 hours, Employer.com acquired Bench, promising to rehire a significant number of former employees and rebuild the business. This rapid acquisition showcases how even in dire circumstances, visibility and quick decision-making can open unexpected doors.

Why It Matters: 

• AI isn’t a fix-all. Bench’s reliance on it to cut costs backfired, showing that automation needs strong processes and human oversight to succeed.

• Bench’s story highlights how visibility, even during failure, can attract the right people or organizations to step in and provide solutions.

• Abrupt decisions like Bench’s sudden shutdown during the holidays can tarnish a brand’s reputation, making it harder to regain trust even after a revival.

Trend

CES 2025 Biggest Trends

CES 2025 is currently underway and runs until January 10. So far, we’ve seen a flood of announcements, from cutting-edge AI breakthroughs to ambitious plans for autonomous vehicles.

In this section, I’ll dive into the biggest trends shaping the tech world right now. I’ll skip the endless updates about consumer products like phones and TVs—you can find those everywhere—and focus instead on the announcements that really matter: groundbreaking tech, startup innovations, and big ideas that could define the future.

1. Artificial Intelligence

No surprises here—AI is stealing the show at CES 2025. Here are some of the most exciting announcements:

• NVIDIA’s Project DIGITS: NVIDIA introduced a desktop AI supercomputer capable of running AI models with up to 200 billion parameters. This tool democratizes AI experimentation, reducing reliance on cloud infrastructure and enabling startups to innovate faster.

• Samsung’s “AI for All”:  Samsung unveiled its 'AI for All' vision, aiming to make AI an “everyday, everywhere” experience. This initiative focuses on integrating AI across a wide range of devices, from smart TVs to home appliances, enhancing user experiences by making technology more intuitive and responsive.

2. AI Wearables

This one’s a bit unexpected, especially after the high-profile flops of products like the Humane Pin. But despite past failures, CES 2025 is packed with announcements aimed at making AI wearables the next big thing.

• Bee AI's Pioneer Wearable: Bee AI unveiled the Pioneer wearable, a wristband that continuously listens to ambient sound and uses AI to generate personal to-do lists and conversation summaries. The device does not store audio recordings; instead, it processes conversations in real-time to provide insights and reminders.

• Movano's EvieAI Smart Ring: Movano announced EvieAI, an AI chatbot integrated into their smart ring, trained on over 100,000 peer-reviewed medical journals. It provides users with accurate health information, emphasizing AI's role in personal health management and the trend towards wearable health tech.

• OMI AI: OMI unveils a wearable pendant designed to be a personal AI companion, prioritizing emotional connection and natural interactions. Similar to the controversial Friend, it aims to function more as a supportive companion than just a practical gadget.

3. Robotics

CES 2025 is packed with robot announcements, from industry-focused innovations to smart home companions.

• Samsung’s Ballie: Samsung's Ballie is an AI-powered home companion robot that autonomously navigates your home, managing connected devices to provide personalized assistance. Recently upgraded with a built-in projector, Ballie can display content on various surfaces.

• Unitree Robots: Unitree, a Chinese robotics company, showcased its latest innovations, including the G1 humanoid robot. Positioned as a more affordable alternative to Boston Dynamics, Unitree is emerging as a key competitor in making advanced robotics accessible to a wider market.

4. Autonomous Vehicles

CES 2025 spotlighted breakthroughs in autonomous driving, with startups and industry leaders pushing the boundaries of self-driving technology. 

• NVIDIA and Uber Partnership: Leveraging NVIDIA’s AI-driven platform, Uber plans to accelerate its autonomous driving development, hinting at safer and scalable self-driving solutions.

• Applied EV's Blanc Robot: Applied EV introduced the Blanc Robot, touted as the world's first programmable autonomous vehicle. This software-defined vehicle (SDV) platform is designed for creating safety-rated autonomous vehicles with configurable utility and complete programmability.

Help Me Improve Failory

That's all of this edition.

Cheers,

Nico