Employer.com has acquired MainStreet.com for an undisclosed quantity, the most recent fintech startup to get snapped up by the workforce administration firm.
In a submit on X, Employer.com Chairman and co-founder Jesse Tinsley stated the 2 corporations had been “merging forces to simplify enterprise again workplace options into one powerhouse platform.” Tinsley confirmed the acquisition to TechCrunch.
MainStreet, a San Jose, California-based startup based in 2019, constructed a enterprise round serving to startups uncover analysis and growth tax credit. The startup generated income by taking a put from the pool of credit. MainStreet had some success in its first yr, crossing the $1 million ARR run price threshold and serving to the common consumer save $51,000. In 2021, MainStreet’s income crossed $15 million, per trade e-newsletter Not Boring.
Indicators of potential bother appeared in 2022 when MainStreet laid off about 30% of its employees, citing “an extremely tough market.” At its prime in 2021, MainStreet was valued at $500 million. The corporate was stated to have closed on a financing in 2022 at a $200 million valuation.
It’s unclear what MainStreet’s stability sheet regarded like instantly previous to this acquisition, though Tinsley informed TechCrunch in an interview the corporate was worthwhile. In complete, MainStreet raised about $75 million in recognized enterprise capital from buyers corresponding to SignalFire, Tusk Ventures, Shrug, Moxxie Ventures, Weekend Fund, Gradient Ventures, Sound and SV Angels.
One in all MainStreet’s buyers launched the corporate to Employer.com, in response to Tinsley. MainStreet’s 15-person group might be becoming a member of Employer.com as a part of the transaction, which has about 500 staff throughout all its corporations.
With the acquisition, Employer.com is valued at simply north of $700 million, Tinsley stated.
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The San Francisco-based firm has been on a purchasing spree not too long ago.
In late 2024, Employer.com introduced it was buying Bench, a VC-backed accounting startup that left 1000’s of shoppers locked out of their accounts after it all of a sudden shut down, in a fireplace sale. Final week, Bench performed a spherical of serious layoffs. And in January, Employer.com had provided to amass Degree, a fintech startup that abruptly shut down after failing to discover a purchaser however that deal didn’t undergo.
“Once we initially began Employer.com after which purchased Bench, the overarching theme… is principally automating an end-to-end platform for the G Suite for the enterprise again workplace,” he informed TechCrunch in an interview. Shopping for MainStreet is in keeping with that aim, Tinsley stated.
In late January, Tinsley and Employer.com was reportedly teaming up with YouTuber MrBeast and others to avoid wasting TikTok by submitting an all-cash bid for the app, in response to a report in Bloomberg. It’s unclear what occurred to that alleged buyout try though Tinsley publicly confirmed in March that he was a part of that $30 billion bid.
This story was up to date post-publication to mirror MainStreet’s correct funding quantity
