All News

Carta Backs SimpleClosure After Exiting Startup Shutdown Market

In 2024, Carta launched then retired its startup shutdown service, opting instead to invest in SimpleClosure, a company automating the complex process of winding down startups. SimpleClosure, dubbed the 'TurboTax of shutting down,' raised $15 million in Series A funding led by TTV Capital, with Carta as a new investor. The startup’s revenue grew 12x in 2024, reflecting strong demand for streamlined shutdown solutions.

Published May 7, 2025 at 01:06 PM EDT in Software Development

In early 2024, equity management platform Carta ventured into the startup shutdown market by launching a new service called Carta Conclusions. However, by December, the company decided to retire this offering, recognizing that partnering with a specialized startup would better serve this niche. Carta then invested in SimpleClosure, a startup focused on automating and simplifying the complex process of winding down startups.

SimpleClosure, which brands itself as the "TurboTax of shutting down," was founded by Dori Yona after he encountered the difficulties of conducting a shutdown analysis in his previous company. The startup’s platform automates and streamlines the shutdown process, addressing a critical but often overlooked phase in the startup lifecycle.

The demand for SimpleClosure’s solution has been significant, with the company achieving over seven figures in annualized revenue by February 2024. Shortly after raising $1.5 million in pre-seed funding, SimpleClosure secured an additional $4 million, culminating in a total of $20.5 million raised to date. The $15 million Series A round was led by TTV Capital and included participation from Carta, The LegalTech Fund, and other investors.

Carta’s spokesperson Amanda Taggart explained that investing in SimpleClosure aligns better with their strategy than building an in-house solution. Carta also offers its customers a free consultation and a 10% discount on SimpleClosure’s services, reinforcing the partnership.

Dori Yona highlighted that while 90% of startups don’t survive, shutting down is an inevitable and necessary part of entrepreneurship. SimpleClosure aims to help companies navigate this phase correctly and efficiently. In 2024, the startup’s revenue grew twelvefold compared to the previous year, underscoring the growing need for dedicated shutdown solutions.

The partnership between Carta and SimpleClosure reflects a broader trend in the startup ecosystem: recognizing and addressing the full lifecycle of startups, including the often overlooked shutdown phase. By investing in specialized solutions, Carta is enabling founders and investors to manage exits more effectively, reducing friction and legal complexities.

The Importance of Streamlining Startup Shutdowns

Shutting down a startup involves complex legal, financial, and operational steps that can overwhelm founders and stakeholders. Without proper guidance and tools, the process can lead to costly mistakes and prolonged uncertainty. SimpleClosure’s platform automates many of these steps, providing clarity and efficiency during a difficult transition.

For investors and boards, having a reliable shutdown process is critical to protecting value and ensuring compliance. SimpleClosure’s technology supports these stakeholders by delivering structured shutdown analyses and actionable insights, reducing risk and accelerating decision-making.

Looking Ahead: Partnerships Driving Innovation

Carta’s strategic pivot from building an in-house shutdown service to investing in SimpleClosure exemplifies how collaboration can accelerate innovation in startup support services. By leveraging SimpleClosure’s expertise, Carta enhances its value proposition to customers while focusing on its core competencies in equity management.

As the startup ecosystem matures, addressing the full spectrum of startup journeys—including exits and shutdowns—becomes increasingly important. Solutions like SimpleClosure fill a critical gap, empowering founders, investors, and boards to manage shutdowns with confidence and efficiency.

The Future of Business is AI

AI Tools Built for Agencies That Move Fast.

QuarkyByte offers in-depth insights on startup lifecycle management and software solutions that streamline complex processes like shutdowns. Explore how our data-driven analysis can help tech leaders optimize operational transitions and partner with emerging platforms like SimpleClosure for measurable impact.