Employer.com acquires MainStreet.com for an undisclosed sum, marking the latest fintech startup to be absorbed by the workforce management firm.
Announcing the deal on X, Employer.com Chairman and co-founder, Jesse Tinsley stated that the two companies were “merging forces to simplify business back office solutions into one powerhouse platform.”
MainStreet.com, a San Jose, California-based startup founded in 2019, helps startups identify research and development tax credits. It generates revenue by taking a share of the credits it uncovers for clients.
The company gained early momentum, surpassing a $1 million annual recurring revenue (ARR) run rate in its first year and helping the average client save $51,000. By 2021, it had grown its revenue to over $15 million.
Warning signs emerged in 2022 when MainStreet laid off approximately 30% of its workforce, citing “an incredibly rough market.” At its peak in 2021, investors valued the company at $500 million. Reports said it raised funding in 2022 at a reduced valuation of $200 million.
MainStreet’s exact financial position leading up to the acquisition remains unclear, though Tinsley stated that the company remained profitable. Over time, MainStreet raised roughly $75 million in known venture funding from backers such as SignalFire, Tusk Ventures, Shrug, Moxxie Ventures, Weekend Fund, Gradient Ventures, Sound, and SV Angels.
According to Tinsley, one of the MainStreet’s investors facilitated the introduction to Employer.com.
The acquisition, Tinsley added, has pushed Employer.com’s valuation to just over $700 million.
The San Francisco-based company has been actively acquiring startups in recent months.
In late 2024, Employer.com revealed that it was purchasing Bench, a VC-backed accounting startup that had abruptly shut down, leaving thousands of customers locked out of their accounts in what was described as a fire sale. Just a week before the acquisition, Bench carried out major layoffs.
Earlier, in January, Employer.com made an offer to acquire Level, a fintech startup that also shut down suddenly after failing to secure a buyer, though the deal ultimately fell through.
“When we originally started Employer.com and then bought Bench, the overarching theme… is basically automating an end-to-end platform for the G Suite for the business back office,” Tinsley said.
In late January, Tinsley and Employer.com reportedly teamed up with YouTuber MrBeast and others to try to save TikTok by submitting an all-cash bid for the app. It’s unclear what happened to that alleged buyout attempt, but Tinsley publicly confirmed in March that he participated in the $30 billion bid.
