Employer.com Acquires Fintech Company MainStreet.com in Recent Acquisition

Employer.com has successfully acquired MainStreet.com for an undisclosed amount, representing the latest move by the workforce management firm in the fintech startup space.

In a statement on X, Employer.com Chairman and co-founder Jesse Tinsley emphasized that both companies are “merging efforts to enhance business back office solutions into one robust platform.” Tinsley confirmed the acquisition in comments to TechCrunch.

Founded in 2019 and located in San Jose, California, MainStreet dedicated itself to assisting startups in identifying research and development tax credits. The company generated revenue by taking a percentage of the credits. In its first year, MainStreet achieved an annual revenue run rate exceeding $1 million while helping the average client save $51,000. By 2021, its revenue had grown beyond $15 million, according to the industry newsletter Not Boring.

In 2022, troubling indicators arose when MainStreet reduced its workforce by roughly 30%, attributing this to the “extremely challenging market.” At its peak valuation of $500 million in 2021, the company later secured financing at a reduced valuation of $200 million in 2022. As reported by PitchBook, MainStreet raised $31 million in Series B funding from Alumni Ventures, Ethos Fund, and Scribble Ventures in June of that year.

It’s unclear what MainStreet’s financial health was just prior to the acquisition, although Tinsley suggested in an interview with TechCrunch that the firm was profitable. MainStreet attracted nearly $96 million in venture capital from investors, including SignalFire, Tusk Ventures, Shrug, Moxxie Ventures, Weekend Fund, Gradient Ventures, Sound, and SV Angels.

According to Tinsley, one of MainStreet’s backers facilitated the introduction to Employer.com. The 15-person team from MainStreet will be incorporated into Employer.com, which has about 500 employees across its various divisions.

This acquisition raises Employer.com’s valuation to over $700 million, according to Tinsley.

The San Francisco-based company has been actively pursuing acquisitions lately.

In late 2024, Employer.com made headlines with its acquisition of Bench, a VC-backed accounting startup that abruptly shut down, leaving numerous customers without access to their accounts. Last week, Bench carried out a significant round of layoffs. Additionally, in January, Employer.com showed interest in acquiring Level, a fintech startup that suddenly shut down after failing to find a buyer; however, that deal did not materialize.

“When we launched Employer.com and subsequently acquired Bench, our primary goal… is to create an automated, end-to-end platform for the G Suite for business back office,” he shared with TechCrunch in a recent interview. Tinsley stated that acquiring MainStreet fits seamlessly with this vision.

In late January, Tinsley and Employer.com reportedly partnered with YouTuber MrBeast and others in an effort to save TikTok by making an all-cash bid for the app, as reported by Bloomberg. The outcome of that proposed buyout remains uncertain, although Tinsley confirmed in March that he was involved in the $30 billion offer.