In February 2024, equity management startup Carta announced its venture into the startup winddown sector with the introduction of Carta Conclusions. However, by December of the same year, the company decided to discontinue this offering, as stated in a blog post.
Subsequently, SimpleClosure, a company positioning itself as “the Turbo Tax of shutting down,” emerged as a new investment target for Carta, which participated in SimpleClosure’s $15 million Series A funding round. According to Carta spokesperson Amanda Taggart, this strategic shift came from the recognition that partnering with a dedicated team like SimpleClosure would be more effective than trying to develop in-house solutions to manage startup closures. In addition, Carta is now providing customers with a free consultation and a 10% discount on SimpleClosure’s services.
The idea for SimpleClosure originated from Dori Yona, who developed the concept while tasked with creating a “shutdown analysis” for a previous company. The complexity of the process led him to develop a software platform aimed at automating and streamlining shutdown operations. Following its launch, SimpleClosure quickly garnered traction, achieving over seven figures in annual revenue by February 2024. Since then, the company has raised a total of $20.5 million, following its $4 million Series A announcement less than six months after an initial $1.5 million pre-seed round.
TTV Capital led the Series A, complemented by existing investors such as Infinity Ventures and Anthemis, as well as new investors like The LegalTech Fund and a group of undisclosed angel investors. Yona remarked on the harsh reality of the startup landscape, noting that approximately 90% of startups do not succeed, making effective shutdown procedures a critical and often overlooked aspect of entrepreneurship. He emphasised their aim to support companies in executing closures correctly, should the need arise.
By the end of 2024, SimpleClosure reported a remarkable 12-fold increase in revenue compared to the previous year, underscoring the ongoing demand for services designed to facilitate the winding down of businesses in an efficient and responsible manner.
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