Employer.com has acquired MainStreet.com, a fintech startup known for helping companies claim R&D tax credits. The deal’s financial terms remain undisclosed, but the acquisition is another strategic move for Employer.com as it grows into a full-stack back office solution.
Chairman and co-founder Jesse Tinsley announced the acquisition in a post on X (formerly Twitter), saying the companies are “merging forces to simplify business back office solutions into one powerhouse platform.” Tinsley confirmed the news in an interview.
MainStreet’s Rise and Challenges
Founded in 2019, San Jose-based MainStreet built tools to help startups uncover research and development tax credits. The company earned revenue by taking a share of the recovered funds. In its first year, MainStreet crossed $1 million in ARR and claimed it helped the average client save around $51,000. By 2021, revenue soared past $15 million, and the startup hit a peak valuation of $500 million.
However, cracks appeared in 2022. MainStreet laid off 30% of its team, citing “an incredibly rough market.” It reportedly closed a financing round that year at a lower $200 million valuation. Despite the downsizing, Tinsley said the company was profitable at the time of the acquisition.
MainStreet raised around $75 million from top investors like SignalFire, Tusk Ventures, Shrug, Moxxie Ventures, Weekend Fund, Gradient Ventures, Sound, and SV Angels.
The introduction to Employer.com came through one of MainStreet’s investors. As part of the acquisition, MainStreet’s 15-person team will join Employer.com, which now has about 500 employees across its growing portfolio.
Employer.com’s Fintech Roll-Up Strategy
San Francisco-based Employer.com is on a mission to automate and consolidate back office services for businesses. With the MainStreet acquisition, Tinsley says the company is valued at just over $700 million.
This move follows a string of deals. In late 2024, Employer.com acquired Bench, a VC-backed accounting startup that had abruptly shut down, locking customers out of their accounts. Bench also laid off more staff just last week. Earlier this year, Employer.com attempted to acquire Level, another fintech startup that shuttered after failing to find a buyer. That deal, however, did not go through.
“When we started Employer.com and bought Bench, our vision was to automate the G Suite for the business back office,” Tinsley explained. Acquiring MainStreet, which streamlines tax credit claims, fits that broader mission.
Outside fintech, Tinsley also made headlines earlier this year for reportedly participating in a $30 billion all-cash bid to acquire TikTok, teaming up with YouTuber MrBeast and other investors. While the bid’s outcome remains unclear, Tinsley publicly confirmed his involvement in March.
With MainStreet now under its wing, Employer.com continues its aggressive push to consolidate back office tools into one integrated platform. By combining tax credit automation, accounting services, and workforce management, the company aims to offer an all-in-one solution for modern startups.
