SimpleClosure, a company founded by three-time entrepreneur Dori Yona, has raised $1.5 million in pre-seed funding in less than 24 hours. The platform aims to simplify and automate the complex process of shutting down a company, which is often manual and bureaucratic. With an estimated 90% of startups failing, the need for an efficient and cost-effective solution is evident.
Key Takeaway
SimpleClosure, a new platform, has raised
.5 million to simplify and automate the complex process of shutting down a company. With an estimated 90% of startups failing, there is a significant market need for a streamlined and cost-effective shut-down solution. SimpleClosure leverages fintech, legal tech, and AI technology to automate three stages: onboarding, dissolution & wind-up, and actual shutdown. The platform’s success in fundraising without a pitch deck underscores the demand for its services.
Raising money without a pitch deck
In an interesting twist, SimpleClosure was able to secure funding without a traditional pitch deck. Yona pitched the idea at a Fintech Meetup and received immediate interest and buy-in from investors. This rapid fundraising underscored the demand for a solution like SimpleClosure.
The immense market need for a streamlined shut-down process
SimpleClosure plans to use the majority of the funds raised for product and engineering development. The platform leverages fintech, legal tech, and artificial intelligence to automate the shut-down process. This includes three stages: onboarding, dissolution & wind-up, and actual shutdown.
During the onboarding stage, SimpleClosure collects information to understand the specific challenges faced by each company. It then initiates procedures and executes the dissolution and closure plan. This includes resolving obligations, tying up loose ends with stakeholders, preparing legal paperwork, and securing consents. The company also handles intellectual property, financial obligations, fund distributions, and offers advice on post-closure activities.
Founder Dori Yona emphasized that SimpleClosure has been generating revenue since day one and has a profit-focused approach. The company aims to grow rapidly and is currently working with startups, corporations, and LLCs. It plans to expand to other segments in the future.
Recognition of a problem that needs solving
Rex Salisbury, founder and general partner of Cambrian Ventures, invested in SimpleClosure because he recognized the need for a solution to the often difficult and risk-laden shut-down process. Salisbury highlighted the complexities involved, especially for larger or highly regulated companies.
According to Salisbury, SimpleClosure’s tech-first approach is poised to revolutionize a previously manual and error-prone process. The platform’s use of AI technology to automate tedious tasks, such as data extraction and document summarization, further enhances its value.
