Employer.com scoops up yet another fintech in acquisition of MainStreet.com

Employer. com has truly obtained MainStreet.com for a hid amount, the present fintech start-up to acquire bought by the workforce management company.

In a post on X, Employer.com Chairman and founder Jesse Tinsley claimed each companies had been “merging pressures to streamline group again office providers proper into one large system.” Tinsley validated the acquisition to TechCrunch.

MainStreet, a San Jose, California-based start-up established in 2019, constructed a company round aiding start-ups uncover r & d tax obligation credit score scores. The beginning-up created earnings by taking a positioned from the swimming pool of credit score scores. MainStreet had some success in its first year, going throughout the $1 million ARR run value restrict and aiding the standard buyer preserve $51,000. In 2021, MainStreet’s earnings went throughout $15 million, per industry newsletter Not Boring.

Indicators of potential problem confirmed up in 2022 when MainStreet laid off about 30% of its staff, stating “an unbelievably harsh market.” At its prime in 2021, MainStreet was valued at $500 million. The enterprise was claimed to have truly shut on a funding in 2022 at a $200 million valuation. (In keeping with PitchBook, the enterprise elevated $31 quite a few Assortment B endeavor financing from Alumni Ventures, Rules Fund and Scribble Ventures that June).

It is imprecise what MainStreet’s annual report appeared like promptly earlier to this buy, though Tinsley knowledgeable TechCrunch in a gathering the enterprise paid. In complete quantity, MainStreet elevated nearly $96 million in well-known monetary backing from financiers reminiscent of SignalFire, Tusk Ventures, Shrug, Moxxie Ventures, Weekend Break Fund, Slope Ventures, Noise and SV Angels.

Amongst MainStreet’s financiers offered the enterprise to Employer.com, in keeping with Tinsley. MainStreet’s 15-person group will definitely be signing up with Employer.com as part of the deal, which has round 500 employees members all through all its companies.

With the acquisition, Employer.com is valued at merely north of $700 million, Tinsley claimed.

The San Francisco-based enterprise has truly gotten on a buying spree these days.

In late 2024, Employer.com launched it was acquiring Bench, a VC-backed audit start-up that left tons of of customers shut out of their accounts after it suddenly shut down, in a fireplace sale. Lately, Bench carried out a round of significant layoffs. And in January, Employer.com had offered to acquire Level, a fintech start-up that shortly closed down after stopping working to find a buyer but that cut price actually didn’t expertise.

” After we initially started Employer.com and after that acquired Bench, the overarching motif … is primarily automating an end-to-end system for the G Assortment for enterprise again office,” he knowledgeable TechCrunch in a gathering. Buying MainStreet stays in line conserving that goal, Tinsley claimed.

In late January, Tinsley and Employer.com was supposedly becoming a member of YouTuber MrBeast and others to preserve TikTok by sending an all-cash bid for the app, in keeping with a report in Bloomberg. It is imprecise what occurred to that declared acquistion effort though Tinsley overtly confirmed in March that he belonged to that $30 billion quote.