Employer.com announces the acquisition of MainStreet. This San Jose, California-based fintech startup will further diversify Employer.com’s growing portfolio while improving services available to the booming world of startups. MainStreet Acadiana, which was founded in 2019, focuses on finding businesses research and development tax credits, an essential financial lifeline for forward-thinking firms.
In its first year, MainStreet hit some impressive milestones, including the $1 million annual recurring revenue (ARR) run rate mark. By 2021, the company’s revenue grew over $15 million annually, and it achieved a lofty valuation of $500 million at its peak. This phenomenal growth showed how much clients wanted and needed its services, which saved the average client about $51,000.
MainStreet was hurt by economic downturns caused by inflation and rising interest rates. In 2022, it secured financing at a reduced valuation of $200 million and laid off about 30% of its staff, citing “an incredibly rough market.” MainStreet pushed through these obstacles and eventually went on to raise nearly $75 million in venture capital. This amazing funding was led by notable investors like SignalFire, Tusk Ventures, Shrug, Moxxie Ventures, Weekend Fund, Gradient Ventures, Sound and SV Angels.
As a part of the acquisition, MainStreet’s 15-person workforce will flow into Employer.com, which is currently staffed by around 500 employees across its many subsidiaries. One of MainStreet’s investors then connected MainStreet with Employer.com. Far beyond the scope of the trademark case, this move further amplifies the interconnectedness of the startup ecosystem.
Employer.com CEO Tinsley reassured the acquisition, stating that the strategic acquisition is in line with Employer.com’s mission of helping fund and nurture startups with creative financial solutions. The deal has received a significant amount of press, including from TechCrunch, Forbes, and the Silicon Valley Business Journal. Bizjournal’s tech reporter maryaazevedo has you covered. An accomplished business reporter, editor and executive for more than 20 years, her passion for empowering female storytellers shines through in its industry impact.
