▼ Summary
– Employer.com acquired MainStreet.com, a fintech startup specializing in R&D tax credits for businesses, for an undisclosed amount.
– MainStreet had early success, reaching $15M revenue in 2021, but faced challenges in 2022 with layoffs and a valuation drop from $500M to $200M.
– MainStreet raised $75M in venture capital and will join Employer.com with its 15-person team, while Employer.com’s valuation exceeds $700M post-acquisition.
– Employer.com has been actively acquiring companies, including Bench, to build an automated back-office platform for businesses.
– Employer.com’s chairman, Jesse Tinsley, was involved in a reported $30B bid to acquire TikTok, though the outcome remains unclear.
Workforce management platform Employer.com has expanded its fintech portfolio with the acquisition of tax credit specialist MainStreet.com. While financial terms remain confidential, the deal brings together two companies focused on streamlining back-office operations for businesses.
Jesse Tinsley, Employer.com’s Chairman and co-founder, described the merger as combining strengths to create a unified platform for financial solutions. MainStreet, launched in 2019, carved out a niche by helping startups identify and claim research and development tax credits, taking a percentage of recovered funds as revenue. Early traction saw the company surpass $1 million in annual recurring revenue within its first year, with clients averaging $51,000 in savings. By 2021, revenue reportedly hit $15 million, though challenges emerged when MainStreet downsized 30% of its workforce in 2022 amid market turbulence.
At its peak, MainStreet’s valuation reached $500 million, though later funding rounds suggested a drop to $200 million. Despite these shifts, Tinsley confirmed the startup was profitable at the time of acquisition. Backed by $75 million in venture capital from firms like SignalFire and Gradient Ventures, MainStreet’s 15 employees will now integrate with Employer.com’s 500-person team.
This marks Employer.com’s latest strategic move following its purchase of accounting startup Bench in late 2024—a deal that followed Bench’s abrupt shutdown and customer access issues. Another attempted acquisition of fintech firm Level fell through earlier this year. Tinsley emphasized that these efforts align with building an all-in-one back-office automation platform, comparing the vision to “G Suite for business operations.”
The acquisition reportedly pushes Employer.com’s valuation above $700 million. Notably, Tinsley was also linked to a rumored $30 billion bid for TikTok alongside MrBeast, though the outcome remains unclear.
(Source: TechCrunch)
