SimpleClosure, which claims to offer the straightforward way to shut down your startup, announced it has raised $15 million in fresh funding.
Led by TTV Capital, the pre-empted Series A round is a follow from its February 2024 seed round and includes participation “from existing investors Infinity Ventures, Anthemis Global, Foxe Capital, Vera Equity, and new investors The LegalTech Fund and Carta as well as additional angels.”
This infusion of capital brings SimpleClosure’s total funding to more than $20 million at a time “when startups are facing delayed IPOs, stalled M&A, and a potential new wave of shutdowns in an uncertain economy.”
Dori Yona, Founder and CEO of SimpleClosure said:
“The reality is that 90% of startups don’t make it, and shutting down remains the unspoken but necessary part of entrepreneurship. We hope companies never need us, but if they do, we’re here to help them do it the right way. Day in and out, our team builds with care, urgency, and a deep belief in the impact of what we are creating. This funding will help us grow faster, build smarter, and deliver even more value to the founders who rely on SimpleClosure when it matters most.”
Startups, VC-backed companies, and businesses of all sizes “are facing mounting pressure from a challenging macroeconomic environment.”
Global trade tensions and renewed tariffs, coupled “with rising interest rates and a greater cost of capital, are forcing founders to stretch their runway or focus on critical cost cutting measures.”
At the same time, amidst a “less-friendly IPO environment, mergers and exits are making investors more cautious.”
Startups are also grappling “with valuation resets after raising at inflated levels during recent boom years.”
This shift toward efficient growth “over rapid scaling leaves companies that cannot quickly demonstrate sustainability to rethink their strategy entirely, which often includes shutting down.”
SimpleClosure was founded with a critical mission: to transform the “painful and bureaucratic dissolution process so founders can focus on their next project.”
The company’s technology automates regulatory paperwork, legal filings, compliance, and investor communications, “leveraging AI agents to bring order and transparency to an otherwise time-consuming and confusing process.”
By combining fintech, legal tech, and AI, SimpleClosure resolves “any remaining obligations with customers, state agencies, and team members on behalf of the dissolving business.”
To date, more than 1,500 founders from “companies of all sizes have wound down their businesses with SimpleClosure.”
Since its public launch in September 2023, SimpleClosure has scaled its operating efficiencies to meet demand and built out a team “combining R&D talent with legal and dissolution experts.”
The infusion of capital will support the company’s growth, “including product updates and integrations, to scale the platform and reach more founders and verticals during a time of heightened need.”
Lizzie Hartley, partner at TTV Capital said:
“SimpleClosure quickly proved there is high demand for a platform that streamlines company dissolutions, saving businesses both time and money. The company’s strong growth over the past year is a testament to the product that Dori and his team have built — one they wish they had when they were winding down their own startups. We are proud to support the SimpleClosure team as they continue to scale the business and meaningfully address the complexities of shutting down a company.”