Employer.com has acquired MainStreet.com for an undisclosed amount, marking the latest fintech startup acquisition by the workforce management company.
In a post on X, Employer.com Chairman and co-founder Jesse Tinsley stated that the two companies are merging to streamline business back-office solutions into a single powerful platform. Tinsley confirmed the acquisition to TechCrunch.
MainStreet, a San Jose, California-based startup established in 2019, specialized in assisting startups with uncovering research and development tax credits, generating revenue by taking a cut from the credits pool. In its first year, the startup achieved over $1 million in annual recurring revenue and helped clients save an average of $51,000. By 2021, MainStreet’s revenue surpassed $15 million, according to the industry newsletter Not Boring.
Signs of potential difficulties emerged in 2022 when MainStreet laid off about 30% of its staff due to a challenging market. In 2021, the company was valued at $500 million but reportedly closed a financing round in 2022 at a $200 million valuation.
The financial condition of MainStreet immediately before the acquisition remains unclear, though Tinsley told TechCrunch that the company was profitable. MainStreet raised approximately $75 million in venture capital from investors including SignalFire, Tusk Ventures, Shrug, Moxxie Ventures, Weekend Fund, Gradient Ventures, Sound, and SV Angels.
Tinsley noted that one of MainStreet’s investors introduced the company to Employer.com. MainStreet’s 15-person team will join Employer.com, which has about 500 employees across its entities.
With this acquisition, Employer.com is valued at just over $700 million, according to Tinsley.
Based in San Francisco, Employer.com has been actively acquiring other companies recently. In late 2024, it announced the acquisition of Bench, an accounting startup, after it suddenly shut down, leaving many customers without access to their records. Bench had recently undergone significant layoffs. In January, Employer.com offered to acquire Level, a fintech startup that failed to find a buyer, though that deal did not proceed.
In an interview with TechCrunch, Tinsley mentioned that the overarching aim for Employer.com, starting with the acquisition of Bench, is to automate a complete platform for business back-office operations. Acquiring MainStreet aligns with this objective.
In late January, reports surfaced that Tinsley and Employer.com were collaborating with YouTuber MrBeast and others on an all-cash bid to acquire TikTok. It remains unclear what became of this buyout attempt, but Tinsley confirmed in March that he was part of the $30 billion bid.
This article was updated post-publication to reflect MainStreet’s accurate funding amount.
