Carta Shifts Focus: Invests in SimpleClosure’s $15M Series A, Leaving Startup Shutdown Behind
In February 2024, the equity management startup Carta announced its venture into the startup winddown sector with a new service named Carta Conclusions. However, by December, the company decided to discontinue this offering, as detailed in a recent blog post. This shift paved the way for an exciting partnership with SimpleClosure, a startup that positions itself as the “TurboTax of shutting down.”
SimpleClosure Secures Investment from Carta
SimpleClosure has recently raised $15 million in its Series A funding round, with Carta stepping in as a new investor. This strategic move signifies Carta’s intention to focus on partnerships rather than developing in-house solutions. According to Amanda Taggart, a spokesperson for Carta, the decision was influenced by the realization that it was more effective to collaborate with a dedicated team focusing on this critical problem.
- Carta is offering its customers a free consultation.
- Customers will receive a 10% discount on SimpleClosure’s services.
The Inspiration Behind SimpleClosure
Dori Yona, the founder of SimpleClosure, conceived the idea while managing his previous company. Tasked with creating a shutdown analysis by a board member, he encountered a convoluted process that inspired him to develop a software platform aimed at automating and simplifying the shutdown procedure. The demand for such a service was immense, leading SimpleClosure to cross seven figures in annualized revenue by February 2024.
Funding Milestones for SimpleClosure
SimpleClosure’s funding journey has been impressive, raising a total of $20.5 million to date. In the preceding months, the company had secured:
- $1.5 million in pre-seed funding.
- $4 million in a funding round less than six months later.
The recent Series A round was led by TTV Capital and saw participation from existing investors such as Infinity Ventures, Anthemis, and Vera Equity. New backers included The LegalTech Fund and a group of anonymous angel investors.
Addressing Startup Shutdowns
Yona emphasizes the reality that 90% of startups fail, making the process of shutting down an essential yet often overlooked aspect of entrepreneurship. “We hope companies never need us, but if they do, we’re here to help them do it the right way,” he stated. SimpleClosure’s revenue saw an astounding 12x growth in 2024 compared to the previous year, underscoring the increasing necessity for such services.
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