Employer.com has acquired MainStreet.com for a private amount.
In an X post, Jesse Tinsley, chairman and co-founder of Employer.com, said the companies are “integrated to simplify business back office solutions into one Powerhouse platform.” Tinsley confirmed its acquisition of TechCrunch.
Mainstreet, a San Jose, California-based startup founded in 2019, has built a business to help startups unveil their research and development tax credits. Startups generated revenue by taking puts from the pool of credits. Main Street was successful in its first year to some extent, crossing the $1 million ARRRUN rate threshold and helping the average client save $51,000. In 2021, Mainstreet’s revenues exceeded $15 million, not boring per industry newsletter.
Signs of potential trouble came in 2022 when Main Street fired about 30% of its staff and cited “an incredibly rough market.” Main Street was valued at $500 million in Prime in 2021. The company is said to have ended its funding in 2022 at a $200 million valuation.
Tinsley is unclear what Mainstreet’s balance sheet looked like shortly before the acquisition, but in an interview with TechCrunch, Tinsley said the company was profitable. In total, Mainstreet raised approximately $75 million from known venture capital from investors such as Signalfire, Tusk Ventures, Shrug, Moxxie Ventures, Weekend Fund, Gradient Ventures, Sound and SV Angels.
According to Tinsley, one Mainstreet investor introduced the company to Employer.com. Mainstreet’s 15-person team will join Employer.com as part of a deal with around 500 employees in every company.
The acquisition values Employer.com as north of $700 million, Tinsley said.
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The San Francisco-based company has been shopping recently.
In late 2024, Employer.com announced it was acquiring Bench, a VC-backed accounting startup. Last week, the bench conducted a considerable round of layoffs. Also, in January, employee.com offered to get the level. This is a fintech startup that suddenly shuts down after failing to find a buyer, but that deal was not made.
“When I originally started employee.com and then bought the bench, the overarching theme is essentially automating the end-to-end platform for the G-suite in the business back office,” he told TechCrunch in an interview. The main street purchase is consistent with that goal, Tinsley said.
According to a Bloomberg report, in late January, Tinsley and Employer.com reportedly worked with YouTuber Mrbeast and others to save Tiktok by saving Tiktok. Tinsley publicly confirmed in March that he was part of that $30 billion bid, but it is unclear what happened to that alleged acquisition attempt.
This story was updated after publication to reflect the exact amount of funds on Main Street
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