Employer.com Expands Its Empire: MainStreet.com Acquisition Unveiled!

Employer.com Acquires MainStreet.com

Employer.com has made headlines by acquiring MainStreet.com for an undisclosed amount, marking another significant move in the fintech sector. According to Employer.com Chairman and co-founder Jesse Tinsley, this merger aims to simplify business back-office solutions into a single, powerful platform.

MainStreet, based in San Jose, California, was founded in 2019 and specialized in helping startups uncover research and development tax credits. The startup achieved notable success, crossing the $1 million ARR threshold and helping clients save an average of $51,000. By 2021, MainStreet's revenue surged past $15 million. However, signs of trouble emerged in 2022 when the company laid off 30% of its staff due to a challenging market. At its peak, MainStreet was valued at $500 million, but faced a downturn in valuation to $200 million in 2022.

While Tinsley confirmed that MainStreet was profitable prior to the acquisition, the exact details of its financial status remain unclear. MainStreet raised approximately $75 million in venture capital from notable investors including SignalFire and Tusk Ventures. As part of the acquisition, MainStreet's 15-person team will join the ranks of Employer.com, which currently employs around 500 individuals.

With this acquisition, Employer.com is now valued at just over $700 million. The company has been on a buying spree, having previously announced the acquisition of Bench, an accounting startup that faced significant operational challenges.

Tinsley emphasized that the overarching goal of these acquisitions is to automate an end-to-end platform for business back-office operations. Additionally, there have been reports of Tinsley collaborating with YouTuber MrBeast on a bid to acquire TikTok, although the outcome of that attempt remains uncertain.

This story was updated post-publication to reflect MainStreet’s accurate funding amount.