Employer.com has acquired MainStreet.com for an undisclosed quantity, the newest fintech startup to get snapped up by the workforce administration firm.
In a put up on X, Employer.com Chairman and co-founder Jesse Tinsley mentioned the 2 corporations have 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 12 months, 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 business e-newsletter Not Boring.
Indicators of potential hassle 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 mentioned to have closed on a financing in 2022 at a $200 million valuation.
It’s unclear what MainStreet’s steadiness sheet regarded like instantly previous to this acquisition, though Tinsley instructed TechCrunch in an interview the corporate was worthwhile. In whole, MainStreet raised about $75 million in recognized enterprise capital from traders similar to SignalFire, Tusk Ventures, Shrug, Moxxie Ventures, Weekend Fund, Gradient Ventures, Sound and SV Angels.
One among MainStreet’s traders launched the corporate to Employer.com, in accordance with Tinsley. MainStreet’s 15-person crew will likely be becoming a member of Employer.com as a part of the transaction, which has about 500 workers throughout all its corporations.
With the acquisition, Employer.com is valued at simply north of $700 million, Tinsley mentioned.
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The San Francisco-based firm has been on a buying spree lately.
In late 2024, Employer.com introduced it was buying Bench, a VC-backed accounting startup that left 1000’s of consumers locked out of their accounts after it immediately shut down, in a hearth sale. Final week, Bench carried out a spherical of serious layoffs. And in January, Employer.com had provided to amass Stage, a fintech startup that abruptly shut down after failing to discover a purchaser however that deal didn’t undergo.
“After 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 instructed TechCrunch in an interview. Shopping for MainStreet is in step with that aim, Tinsley mentioned.
In late January, Tinsley and Employer.com was reportedly teaming up with YouTuber MrBeast and others to save lots of TikTok by submitting an all-cash bid for the app, in accordance with 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
