Employer.com to Acquire Failed Fintech Level - Following Bench Offer

Level Fintech Startup Faces Potential Acquisition by Employer.com

According to reports from The Information, Employer.com has extended an acquisition offer to Level, a fintech company that recently ceased operations due to unsuccessful attempts to secure a buyer.

However, Level is currently evaluating the proposal. Matt Charney, Employer.com’s Chief Marketing Officer, confirmed to TechCrunch that the offer is presently under legal review.

An update from a source familiar with the negotiations indicates that additional details, beyond the legal aspects, are still being finalized.

Level's Background and Funding

Established in 2018 by Paul Aaron, a former employee of Square, Level successfully secured $30.8 million in funding. Notable investors included Lightspeed Venture Partners and Khosla Ventures.

The startup announced a $27 million Series A funding round in April 2021. Level specialized in providing dental and vision benefits solutions to businesses.

Companies utilizing Level’s services were informed last week that they would need to transition to alternative benefit providers.

Employer.com's Recent Acquisition Activity

This potential acquisition marks the second instance of Employer.com pursuing the purchase of a recently defunct startup within a short timeframe.

TechCrunch previously reported on December 30th that Employer.com would acquire Bench, an accounting startup that unexpectedly shut down, leaving numerous customers unable to access their accounts.

The terms of the Bench acquisition were not disclosed, and final details were still being negotiated as of last week.

Bench’s sudden closure occurred just days before the acquisition announcement.

Additional Information

Charles Rollet of TechCrunch contributed to this report.

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