Employer.com has acquired MainStreet.com for an undisclosed quantity, the most recent fintech startup to get snapped up by the workforce management company.
In a post on X, Employer.com Chairman and co-founder Jesse Tinsley mentioned the 2 firms have been “merging forces to simplify enterprise again workplace options into one powerhouse platform.” Tinsley confirmed the acquisition to TechCrunch.
MainStreet, a San Jose, California-based startup based in 2019, constructed a enterprise round serving to startups uncover analysis and improvement tax credit. The startup generated income by taking a put from the pool of credit. MainStreet had some success in its first year, crossing the $1 million ARR run fee threshold and serving to the common shopper save $51,000. In 2021, MainStreet’s income crossed $15 million, per industry newsletter Not Boring.
Indicators of potential bother appeared in 2022 when MainStreet laid off about 30% of its staff, citing “an extremely tough market.” At its prime in 2021, MainStreet was valued at $500 million. The corporate was mentioned to have closed on a financing in 2022 at a $200 million valuation.
It’s unclear what MainStreet’s stability sheet appeared like instantly previous to this acquisition, though Tinsley advised TechCrunch in an interview the corporate was worthwhile. In whole, MainStreet raised about $75 million in identified enterprise capital from traders similar to SignalFire, Tusk Ventures, Shrug, Moxxie Ventures, Weekend Fund, Gradient Ventures, Sound and SV Angels.
Certainly one of MainStreet’s traders launched the corporate to Employer.com, in keeping with Tinsley. MainStreet’s 15-person group can be becoming a member of Employer.com as a part of the transaction, which has about 500 staff throughout all its firms.
With the acquisition, Employer.com is valued at simply north of $700 million, Tinsley mentioned.
Techcrunch occasion
Berkeley, CA
|
June 5
The San Francisco-based firm has been on a buying spree not too long ago.
In late 2024, Employer.com introduced it was acquiring Bench, a VC-backed accounting startup that left 1000’s of consumers locked out of their accounts after it suddenly shut down, in a fireplace sale. Final week, Bench performed a round of significant layoffs. And in January, Employer.com had offered to acquire Level, a fintech startup that abruptly shut down after failing to discover a purchaser however that deal didn’t undergo.
“After we initially began Employer.com after which purchased Bench, the overarching theme… is principally automating an end-to-end platform for the G Suite for the enterprise again workplace,” he advised TechCrunch in an interview. Shopping for MainStreet is consistent with that objective, Tinsley mentioned.
In late January, Tinsley and Employer.com was reportedly teaming up with YouTuber MrBeast and others to avoid wasting TikTok by submitting an all-cash bid for the app, in keeping with a report in Bloomberg. It’s unclear what occurred to that alleged buyout try though Tinsley publicly confirmed in March that he was a part of that $30 billion bid.
This story was up to date post-publication to mirror MainStreet’s correct funding quantity
Source link
