Employer.com announced the acquisition of fintech startup MainStreet.com for an undisclosed sum, further expanding its portfolio in workforce management technologies. Employer.com’s chairman and co-founder, Jesse Tinsley, described the deal as combining strengths of both entities to establish a comprehensive, unified platform for simplified business back-office operations.
Founded in 2019 and headquartered in San Jose, California, MainStreet specialized in assisting startups with identifying and acquiring research and development tax credits, taking a percentage share of the credits secured. Initially, MainStreet quickly gained traction in its market, surpassing a $1 million annual revenue run-rate within its first year, while also helping clients save an average of $51,000. Its growth peaked in 2021 when, according to industry sources, revenue climbed above $15 million annually and the company attained a valuation of approximately $500 million.
However, MainStreet encountered difficulties by mid-2022, forcing the firm to lay off around 30% of its workforce amid adverse market conditions. During this period, MainStreet underwent a recapitalization round at a significantly reduced valuation, which reportedly stood at $200 million. According to venture databases, MainStreet raised a cumulative total nearing $96 million from investors including SignalFire, Tusk Ventures, Shrug, Moxxie Ventures, and Gradient Ventures. Prior to its takeover, the company’s financials were unclear, though Tinsley confirmed its profitability at the time of acquisition.
The 15-member team from MainStreet will integrate with Employer.com’s existing workforce, which now totals roughly 500 employees across its businesses. The deal values Employer.com slightly above $700 million, according to Tinsley’s announcement.
This acquisition aligns with Employer.com’s strategy of consolidating and automating back-office functionalities, following recent moves such as its purchase late last year of Bench, a venture-backed accounting startup, in a distressed asset sale after Bench unexpectedly ceased operations. Employer.com also previously attempted—but ultimately failed—to purchase the defunct fintech Level, which had shuttered after failing to secure a purchaser.
The consolidation wave at Employer.com underscores the company’s broader ambition to streamline foundational administrative functions for businesses. Notably, earlier this year, Tinsley and Employer.com made headlines when they joined a high-profile $30 billion bid group aiming to acquire TikTok led by prominent YouTuber MrBeast. Although details regarding this bid remain unclear, Tinsley publicly acknowledged participation in the attempted purchase.
