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Ian Crosby's New Venture: Betting on AI Bookkeeping After Past Startup Setbacks

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Ian Crosby, previously known for founding Bench Accounting which collapsed in 2024, is now embarking on a new venture named Synthetic. This startup aims to create a fully autonomous AI bookkeeper that generates accrual-based financials without human intervention.

  • Bench Accounting's History: Crosby's prior company, Bench Accounting, closed down abruptly due to severe financial difficulties and management changes. Although Crosby claims he wasn't responsible for the downturn, having been fired in 2021 after rejecting a $250 million acquisition offer, the collapse led to negative publicity.
  • Synthetic's Ambition: Despite challenges, Synthetic has raised $10 million in seed funding led by Khosla Ventures, with participation from Basis Set Ventures and Tobias Lütke, CEO of Shopify.
  • Investor Perspective: Jon Chu, a Khosla partner, expressed confidence in Crosby, citing examples of other founders overcoming controversy to later achieve success, such as Parker Conrad of Zenefits.
  • Challenges Ahead: Crosby acknowledges the technical difficulties in scaling Synthetic's AI model for a wider audience, comparing it to self-driving cars needing to navigate diverse streets.
  • Strategic Patience: Armed with sufficient funding, Crosby is prepared to patiently develop the AI technology until it achieves the desired reliability.

Current Focus & Market: Synthetic initially plans to serve AI and software startups, although Crosby admits that current AI models are prone to significant bookkeeping errors. He remains optimistic about overcoming these hurdles and emphasizes a commitment to ensuring the product's full autonomy.