MainStreet, a startup that helps different startups uncover tax credit that was valued at $500 million final yr, has laid off about 30% of its workers, in accordance with a tweet from CEO Doug Ludlow.
In that tweet, Ludlow stated MainStreet “took the troublesome step of reorganizing and restructuring the corporate” this week. He didn’t say if these cuts impacted all groups throughout the corporate or if any executives have been laid off. He additionally didn’t state precisely what number of workers are impacted by the transfer.
Ludlow added: “We didn’t take this determination flippantly, and we’re doing the whole lot inside our energy to offer as a lot transition help (severance, well being care, recruiter and job placement help) as is feasible…We took this motion as a result of we imagine that there’s a very sturdy likelihood that right this moment’s extremely tough market is just going to worsen, and doubtlessly stay so for months, if not years.”
TechCrunch has reached out to the San Jose, California-based firm for additional particulars.
The startup constructed a enterprise round serving to startups uncover analysis and growth tax credit, a pool of which it takes a 20% minimize from. In 2020, MainStreet crossed the $1 million ARR run fee threshold and helped the typical MainStreet consumer save $51,000, per earlier TechCrunch reporting. In 2021, MainStreet’s income crossed $15 million, per business e-newsletter Not Boring. It’s unclear what these figures appear to be right this moment – however Ludlow’s tone means that rising challenges await.
“We imagine that there’s a very sturdy likelihood that right this moment’s extremely tough market is just going to worsen, and doubtlessly stay so for months, if not years,” Ludlow continued in his Twitter thread. There’s been a string of layoffs lately, together with Cameo reducing 87 members of its staff and Amazon aggregator Thrasio confirming that it has begun shedding portion of the corporate. Robinhood, a client investing and financial savings firm, additionally introduced that it’s reducing 9% of workers, roughly 300 folks.
MainStreet is backed by buyers together with SignalFire, Tusk Ventures, Shrug, Moxxie Ventures, Weekend Fund, Gradient Ventures, Sound and SV Angels. In line with Crunchbase, the corporate has raised $64.7 million in recognized enterprise capital up to now.
Mary Ann’s weekly fintech e-newsletter, The Interchange, lately launched so click on right here to get it in your inbox.
