Carta Backs Simpleclosure with $15M Series A

Carta Invests in SimpleClosure After Abandoning Similar Offering

In February 2024, Carta, an equity management startup, initially launched a service named Carta Conclusions designed to assist companies with the process of winding down operations.

However, by December of the same year, Carta opted to discontinue this offering, as detailed in a company blog post.

SimpleClosure Secures Series A Funding with Carta as an Investor

Subsequently, SimpleClosure, a startup positioning itself as a streamlined solution for company closures – often described as “the TurboTax of shutting down” – announced that Carta has become a new investor in its $15 million Series A funding round.

Carta’s strategic shift stemmed from the understanding that investing in and collaborating with a dedicated team specializing in this area was more effective than developing an in-house solution, according to Carta spokesperson Amanda Taggart.

As a gesture of support, Carta is extending a complimentary consultation and a 10% discount on SimpleClosure’s services to its existing customer base.

The Genesis of SimpleClosure

The concept for SimpleClosure originated with Dori Yona while he was establishing his previous company.

He was directed by a board member to prepare a comprehensive “shutdown analysis,” a task he found remarkably intricate.

This experience motivated Yona to create a software platform to automate and simplify the shutdown procedure.

Rapid Growth and Funding

Demand for SimpleClosure’s services was substantial from the outset, with the startup achieving over seven figures in annualized revenue by February 2024, as reported by Yona.

Prior to the Series A round, SimpleClosure had already secured $4 million in funding, following a $1.5 million pre-seed round.

To date, the total funding raised by SimpleClosure amounts to $20.5 million.

Series A Details and Investor Participation

TTV Capital spearheaded SimpleClosure’s $15 million Series A round.

Existing investors, including Infinity Ventures, Anthemis, and Vera Equity, also participated in this funding round.

In addition to Carta, new investors included The LegalTech Fund and a cohort of undisclosed angel investors.

Addressing the Startup Failure Rate

“The fact remains that a significant majority – 90% – of startups ultimately fail, and orderly closure is an unavoidable aspect of the entrepreneurial journey,” stated Yona.

“While we hope companies won’t require our services, we are prepared to assist them in navigating this process effectively.”