Employer.com recently made headlines by swooping in to acquire the struggling fintech startup, Level. It was a surprising move considering Level had just shut down due to its inability to secure a buyer. The plot thickened when Matt Charney, Chief Marketing Officer at Employer.com, revealed that they had extended an offer to Level. However, the decision was still pending as Charney cryptically mentioned, “It’s with legal.”
Behind the scenes, negotiations were far from over. A source close to the deal hinted that there were other intricate details being meticulously ironed out aside from the legal aspects. This peek into the ongoing discussions added a layer of suspense and intrigue to the unfolding saga.
Level, founded in 2018 by Paul Aaron, an early Square employee, had initially shown promise in the competitive fintech landscape. With significant backing from renowned investors like Lightspeed Venture Partners and Khosla Ventures amounting to $30.8 million in funding, Level seemed poised for success.
Their breakthrough came in April 2021 when they announced a substantial $27 million Series A funding round. Specializing in offering dental and vision benefits products tailored for businesses, Level quickly gained traction among companies looking for innovative solutions for their employees.
However, fate took a sharp turn when news broke that Level would cease operations abruptly, leaving their client companies scrambling for alternative benefit providers. The sudden demise of Level sent shockwaves through the industry and left many questioning what went wrong.
Surprisingly, this wasn’t Employer.com’s first dive into rescuing failing startups. Just days before making waves with the Level acquisition offer, they had swooped in to save another sinking ship—Bench—an accounting startup that had left its customers stranded without access to their accounts after an unexpected shutdown.
The last-minute acquisition of Bench by Employer.com raised eyebrows and garnered widespread attention within both fintech circles and beyond. Details of this rescue mission were still emerging as stakeholders eagerly awaited updates on how this union would unfold.
As industry experts analyzed these back-to-back acquisitions by Employer.com, speculations ran rife about their strategic motives behind such bold moves. Some viewed it as a savvy business strategy aimed at expanding their portfolio rapidly while others questioned the long-term sustainability of integrating troubled startups into their ecosystem.
In times like these where uncertainty looms large over startups facing financial turbulence, white knights like Employer.com stepping in provide a glimmer of hope amidst dark clouds of doubt.
Amidst all the drama unfolding in the fintech arena with acquisitions and mergers dominating headlines, one thing is certain—the landscape is evolving at breakneck speed with surprises waiting at every corner.
“It’s with legal.”
“There are other details…currently being ironed out.”
Through twists and turns reminiscent of a thrilling novel plotline, Employer.com’s recent endeavors have captured imaginations across industries. As we eagerly await further developments on both fronts—Level and Bench—it leaves us pondering what other surprises might be lurking around the corner in this ever-exciting world of finance and technology.
