In 2017, Dori Yona, COO of Earny, faced the daunting task of preparing a shutdown proposal for his struggling fintech startup. Frustrated by the lack of resources and support, Yona embarked on a mission to address the challenge of shutting down a business effectively. He recognized the stark contrast between launching a business and winding it down and decided to make a difference.
Driven by his own experiences and discussions with fellow startup founders grappling with the same fears and challenges, Yona founded SimpleClosure. This startup leverages the power of AI to streamline the complex process of shutting down a failing business.
SimpleClosure recently announced a significant milestone, securing $1.5 million in pre-seed funding, with support from investors like Michael Vaughn, Jon Pomerantz, and Rex Salisbury. This financial boost positions SimpleClosure to further develop its innovative approach to startup dissolution.
While every entrepreneur dreams of success, the harsh reality is that the majority of startups fail. According to Failory, a platform dedicated to failed startups, the failure rate is staggering, estimated at around 90%. When a business closes improperly, it can result in fines, fees, and mistakes that impact not only the founders but also customers and investors.
SimpleClosure steps in as a vital solution at the intersection of fintech, legal tech, and AI. The startup specializes in creating and executing customized dissolution and closure plans for companies. It also handles remaining obligations to customers, state agencies, and team members.
Since its launch in June, SimpleClosure has experienced exponential growth primarily through word of mouth. Founders who have benefited from its services are spreading the word, underscoring the pressing need for automated assistance in the shutdown process.
The tech industry is on the precipice of what some call a ‘mass extinction event,’ where many young startups are at risk of failure due to a lack of additional funding. SimpleClosure anticipates a surge in demand, estimating that approximately 40,000 startups that secured pre-seed, seed, or Series A funding two years ago and have not raised additional funds are in jeopardy.
Dori Yona emphasizes that SimpleClosure isn’t just about assisting failing startups. It’s about supporting the entire ecosystem that surrounds them, including angel investors, venture capitalists, accountants, lawyers, the IRS, vendors, and consumers. The aim is to provide a seamless and simple solution for all stakeholders affected when a startup closes its doors.