Carta Ends Its Startup Shutdown Business, Invests in SimpleClosure's $15M Series A
Wondering why Carta abandoned its startup shutdown services and what it means for founders seeking startup winddown solutions? Here's everything you need to know. Carta, a leader in equity management, initially launched Carta Conclusions in early 2024 to help startups shut down more efficiently. However, by the end of that same year, the company announced it was discontinuing the offering. Now, Carta is pivoting strategically — choosing to invest in SimpleClosure, a rising platform often dubbed the "TurboTax of shutting down startups." This move signals a major shift in the startup winddown services landscape.
Why Carta Shut Down Carta Conclusions
Initially launched with optimism, Carta Conclusions aimed to simplify the complex process of winding down startups. But just months after its introduction, Carta realized that building and maintaining a high-quality shutdown service internally was not the most effective path. According to spokesperson Amanda Taggart, Carta recognized that "it made more sense to invest and partner with a team laser-focused on solving this problem rather than building in-house."
Carta’s new approach is deeply customer-centric — offering clients free consultations and a 10% discount on SimpleClosure’s shutdown services. This pivot highlights how Carta is doubling down on strategic partnerships to deliver better results, instead of spreading its resources thin across unrelated services.
SimpleClosure: The TurboTax for Startup Shutdowns
SimpleClosure was born from firsthand experience. Founder Dori Yona created the idea while managing the closure of his previous company. Tasked with producing a shutdown analysis for the board, Yona quickly discovered how daunting and inefficient the process could be. Frustrated by the lack of automation tools, he set out to build a tech-driven platform specifically designed to handle startup closures with precision and efficiency.
Demand for SimpleClosure's solution surged immediately. By February 2024, the company had already crossed seven figures in annualized revenue, fueled by startups in need of efficient, compliant closure services. It's no surprise that less than six months after raising $1.5 million in pre-seed funding, SimpleClosure secured another $4 million — bringing its total raised to an impressive $20.5 million.
Inside SimpleClosure’s $15 Million Series A Round
SimpleClosure’s recent $15 million Series A funding round is led by TTV Capital, with strong participation from existing investors like Infinity Ventures, Anthemis, and Vera Equity. New investors, including Carta itself, The LegalTech Fund, and a group of notable angel investors, are also backing the startup.
This significant funding boost positions SimpleClosure to expand its services and help more startups close down efficiently, legally, and ethically. With the startup failure rate hovering around 90%, according to industry data, the need for specialized startup closure platforms is bigger than ever.
A Critical but Overlooked Part of Entrepreneurship
Speaking about the startup shutdown market, Dori Yona emphasized an important truth: "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."
SimpleClosure is stepping into a major opportunity. As venture capital funding cycles tighten and many startups face existential challenges, the demand for professional, efficient winddown services continues to grow. Compliance services, startup liquidation, asset distribution, and corporate dissolution — these high-value legal and financial services are becoming crucial for founders looking to exit gracefully and protect their reputations.
SimpleClosure's Rapid Growth and Future Prospects
SimpleClosure’s meteoric rise is a clear indicator of market demand. In 2024 alone, the company’s revenue grew by 12x year-over-year, according to Yona. The platform is rapidly becoming the go-to resource for startup founders, investors, and legal advisors needing to streamline closures without the typical headaches of manual processes or costly law firms.
By focusing on automation, compliance, and a user-friendly experience, SimpleClosure is redefining how the startup world approaches failure — making shutdowns less painful, more efficient, and significantly cheaper.
Carta’s strategic decision to back SimpleClosure instead of competing against it reflects a broader trend in tech: partnerships over platform sprawl. As startups and investors alike face a more challenging macroeconomic environment, tools that simplify complex, costly processes like shutting down will only become more essential. With Carta’s endorsement and a fresh $15 million to fuel growth, SimpleClosure is well-positioned to dominate the startup winddown market in 2025 and beyond.
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