Employer.com proposed to acquire Levela fintech startup that abruptly closed its doors last week after failing to find a buyer, according to The information.
But Level is still considering the offer, its Employer.com marketing director Matt Charney told TechCrunch. “It’s with the legal authorities,” he said. Update: Further details, beyond the legal framework, are currently being finalized, according to a source close to the deal.
Founded in 2018 by Paul Aaron, a former Square employee, Level had raised a known $30.8 million in funding from high-profile investors such as Lightspeed Venture Partners and Khosla Ventures. In April 2021, the startup announced a $27 million Series A. It offered dental and vision insurance products to businesses, which were told last week they would have to find other providers.
The bid to acquire a folded startup is the second made by Employer.com in just over a week. On December 30, TechCrunch reported that accounting startup Bench, which had left thousands of customers locked out of their accounts after suddenly stopped days before, it would be acquired by Employer.com for an undisclosed price as part of a last-minute deal. Details were still in progress hammered from last week.
Bench has reportedly struggled in part because of its push to adopt AI and other automation tools in recent years, according to some staffers. It’s unclear what exactly led to Level’s disappearance.
TechCrunch reporter Charles Rollet contributed to this article.
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