Employer.com has recently made headlines with its acquisition of MainStreet.com, a San Jose-based fintech startup. The exact amount of the acquisition remains undisclosed, but it marks the latest move by Employer.com to expand its workforce management capabilities.
According to a post on X by Employer.com Chairman and co-founder Jesse Tinsley, the acquisition of MainStreet.com is aimed at integrating business back office solutions into a single, powerful platform. Tinsley confirmed the acquisition in an interview with JS, emphasizing the synergies between the two companies.
MainStreet.com, founded in 2019, specialized in helping startups uncover research and development tax credits. The startup saw early success, reaching a $1 million ARR run rate in its first year and saving an average of $51,000 for each client. By 2021, MainStreet.com’s revenue had surpassed $15 million, as reported by industry newsletter Not Boring.
However, signs of trouble arose in 2022 when MainStreet.com had to lay off around 30% of its staff due to challenging market conditions. Despite being valued at $500 million at its peak in 2021, the company faced financial difficulties and eventually accepted a $200 million valuation in a financing round. MainStreet.com had raised a total of $96 million in venture capital funding from investors like SignalFire, Tusk Ventures, and Gradient Ventures.
Employer.com’s acquisition of MainStreet.com adds a 15-person team to its workforce, bringing the total number of employees across all its companies to 500. With this acquisition, Employer.com’s valuation now stands at over $700 million, solidifying its position in the market.
This acquisition is part of Employer.com’s recent shopping spree, which included the acquisition of Bench, an accounting startup, and an unsuccessful attempt to acquire Level, a fintech startup. According to Tinsley, the overarching goal of these acquisitions is to automate and streamline business back-office operations through a comprehensive platform.
In a bold move, Tinsley and Employer.com were reportedly involved in a bid to save TikTok in partnership with YouTuber MrBeast and others. While the outcome of this bid remains unclear, Tinsley confirmed his participation in the $30 billion bid in March.
Overall, Employer.com’s acquisition of MainStreet.com signals its commitment to innovation and growth in the fintech industry. The integration of MainStreet.com’s expertise and team members will further strengthen Employer.com’s position as a leading workforce management company.
