Khosla Ventures is betting $10M on Ian Crosby, whose first startup, Bench, imploded

Editor's take

Khosla Ventures has invested $10 million in Synthetic, a new venture founded by Ian Crosby, who previously led Bench, an automated bookkeeping service that ceased operations. This funding signals a renewed belief in AI-driven automation for back-office functions, specifically targeting the pain points of early-stage companies.

The significance lies in Khosla Ventures' willingness to back a founder with a prior startup's challenging exit, suggesting a focus on the underlying technology and market opportunity rather than past outcomes. For startups, the promise of fully autonomous bookkeeping could drastically reduce operational overhead, a critical concern for lean organizations. This move positions Synthetic against established players in accounting software and other AI-powered financial tools.

Future developments to monitor include Synthetic's ability to onboard and reliably serve a diverse range of startup needs, from simple invoicing to complex expense management. The success of this venture will hinge on its accuracy, security, and scalability, and whether it can truly offer a hands-off solution that surpasses human-assisted alternatives like Bench’s former offering.