Employer of work.com has acquired mainstreet.com for an unmealing amount, the last Fintech startup to be taken by the workforce management company.
In an X post, the president and co-founder of employer of work.com Jesse Tinsley said that the two companies were “combining forces to simplify the company back office solutions in a single electrical platform”. Tinsley confirmed the acquisition to Techcrunch.
Mainstreet, a startup based in San Jose, California, founded in 2019, built a company to help startups to discover research and development tax credits. The startup generated entry by taking a pool of credits. Mainstreet was a certain success in his first year, crossing the threshold of the racing rate ARRA DA $ 1 million and helping the average customer to save $ 51,000. In 2021, the Mainstreet revenues went through $ 15 million, for newsletters in the sector not boring.
Signs of potential problems appeared in 2022 when Mainstreet fired about 30% of his staff, citing “an incredibly difficult market”. At his peak in 2021, Mainstreet was evaluated at $ 500 million. The company was said to have closed a loan in 2022 to an evaluation of $ 200 million. (According to PitchBook, the company has collected $ 31 million risk funding from Serie B from Alumni Ventures, Ethos Fund and Scribble Ventures in June).
It is not clear how the Mainstreet budget immediately had seemed immediately before this acquisition, even if Tinsley told Techcrunch in an interview that the company was profitable. In total, Mainstreet has collected almost 96 million dollars in risk capital known by investors such as Signalfire, Tusk Ventures, Shrug, Moxxie Ventures, Weekend Fund, Gradient Ventures, Sound and Sv Angels.
One of the Mainstreet investors introduced the company to employer..com, according to Tinsley. The team of 15 people from Mainstreet will join Datore di Lavore.com as part of the transaction, which has about 500 employees in all its companies.
With the acquisition, employer of work.com is evaluated north of $ 700 million, said Tinsley.
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The company based in San Francisco was recently in a madness of shopping.
At the end of 2024, employer of work.com announced that he was acquiring a bench, a accounting startup supported by the VC that left thousands of customers blocked by their accounts after he suddenly closed himself, in a fire of fires. Last week, Bench conducted a tour of significant layoffs. And in January, employer of Work.com had offered to acquire the level, a Fintech startup that abruptly closed after not having found a buyer but that agreement did not pass.
“When we initially started employer.com and then we purchased the bench, the general theme … It is basically automating an end-to-end platform for the G-Back Office G Suite,” he told Techcrunch in an interview. The purchase of Mainstreet is in line with this goal, Tinsley said.
At the end of January, Tinsley and Da Labor.com collaborated with YouTuber Mrbeast and others to save Tiktok by sending an offer for all coins for the app, according to a Bloomberg relationship. It is not clear what happened to that alleged attempt to acquire, although Tinsley has publicly confirmed in March which was part of that offer of $ 30 billion.
