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Employer.com has acquired MainStreet.com for an undisclosed amount, the latest fintech startup to get snapped up by the workforce management company<\/a>.<\/p>\n In a post on X<\/a>, Employer.com Chairman and co-founder Jesse Tinsley said the two companies were \u201cmerging forces to simplify business back office solutions into one powerhouse platform.\u201d Tinsley confirmed the acquisition to TechCrunch.<\/p>\n MainStreet<\/a>, a San Jose, California-based startup founded in 2019, built a business around helping startups uncover research and development tax credits. The startup generated revenue by taking a put from the pool of credits. MainStreet had some success in its first year<\/a>, crossing the $1 million ARR run rate threshold and helping the average client save $51,000. In 2021, MainStreet\u2019s revenue crossed $15 million, per industry newsletter Not Boring.<\/a><\/p>\n Signs of potential trouble appeared in 2022 when MainStreet laid off about 30% of its staff<\/a>, citing \u201can incredibly rough market.\u201d At its prime in 2021, MainStreet was valued at $500 million<\/a>. The company was said to have closed on a financing in 2022 at a $200 million valuation<\/a>. <\/p>\n It\u2019s unclear what MainStreet\u2019s balance sheet looked like immediately prior to this acquisition, although Tinsley told TechCrunch in an interview the company was profitable. In total, MainStreet raised about $75 million in known venture capital from investors such as SignalFire, Tusk Ventures, Shrug, Moxxie Ventures, Weekend Fund, Gradient Ventures, Sound and SV Angels.<\/p>\n One of MainStreet\u2019s investors introduced the company to Employer.com, according to Tinsley. MainStreet\u2019s 15-person team will be joining Employer.com as part of the transaction, which has about 500 employees across all its companies.<\/p>\n With the acquisition, Employer.com is valued at just north of $700 million, Tinsley said.<\/p>\n Techcrunch event<\/p>\n \n\t\t\t\t\t\t\t\t\tBerkeley, CA<\/span> \t\t\t\t\t\t\t The San Francisco-based company has been on a shopping spree recently.<\/p>\n In late 2024, Employer.com announced it was acquiring Bench<\/a>, a VC-backed accounting startup that left thousands of customers locked out of their accounts after it suddenly shut down<\/a>, in a fire sale. Last week, Bench conducted a round of significant layoffs<\/a>. And in January, Employer.com had offered to acquire<\/a> Level<\/a>, a fintech startup that abruptly shut down after failing to find a buyer but that deal didn\u2019t go through.<\/p>\n \u201cWhen we originally started Employer.com and then bought Bench, the overarching theme\u2026 is basically automating an end-to-end platform for the G Suite for the business back office,\u201d he told TechCrunch in an interview. Buying MainStreet is in line with that goal, Tinsley said.<\/p>\n In late January, Tinsley and Employer.com was reportedly teaming up with YouTuber MrBeast and others to save TikTok by submitting an all-cash bid for the app<\/a>, according to a report<\/a> in Bloomberg. It\u2019s unclear what happened to that alleged buyout attempt although Tinsley publicly confirmed<\/a> in March that he was part of that $30 billion bid.<\/p>\n
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