Employer.com has acquired MainStreet.com for an undisclosed amount, marking another acquisition in the fintech space by the workforce management company. Jesse Tinsley, Chairman and co-founder of Employer.com, announced on X that the two companies are “merging forces to simplify business back office solutions into one powerhouse platform.” He also confirmed the acquisition to TechCrunch.
Founded in 2019 and based in San Jose, California, MainStreet focused on helping startups identify research and development tax credits. The company generated revenue by taking a percentage of the credits it helped clients secure. In its first year, MainStreet surpassed a $1 million annual recurring revenue (ARR) run rate, with clients saving an average of $51,000. By 2021, MainStreet’s revenue had exceeded $15 million, according to the industry newsletter Not Boring.
However, the company faced challenges in 2022, laying off approximately 30% of its staff due to a “rough market.” At its peak in 2021, MainStreet was valued at $500 million but closed a financing round in 2022 at a reduced valuation of $200 million.
While the specifics of MainStreet’s financial status before the acquisition remain unclear, Tinsley mentioned in an interview that the company was profitable. MainStreet had raised around $75 million in venture capital from various investors, including SignalFire, Tusk Ventures, Shrug, Moxxie Ventures, Weekend Fund, Gradient Ventures, Sound, and SV Angels.
According to Tinsley, one of MainStreet’s investors facilitated the introduction to Employer.com. As part of the acquisition, MainStreet’s 15-person team will join the approximately 500 employees at Employer.com.
Following the acquisition, Employer.com is now valued at just over $700 million. The San Francisco-based company has been actively expanding its portfolio; in late 2024, it announced the acquisition of Bench, a VC-backed accounting startup that had left many customers locked out of their accounts during a fire sale. Bench recently underwent significant layoffs. Earlier in January, Employer.com had also attempted to acquire Level, a fintech startup that abruptly shut down but that deal ultimately fell through.
Tinsley explained that the overarching aim of Employer.com, especially with the acquisition of Bench and now MainStreet, is to automate an end-to-end platform for business back office solutions.
In late January, Tinsley and Employer.com were reportedly collaborating with YouTuber MrBeast and others to submit an all-cash bid for TikTok, as reported by Bloomberg. However, it remains unclear what happened with that proposed buyout, although Tinsley confirmed in March that he was part of the $30 billion bid.
