Fintech MainStreet cuts around 30% of staff, citing ‘incredibly tough market’ – TechCrunch

MainStreet, a startup that helps other startups discover $500 million worth of tax credits last year, has laid off around 30% of its staff, according to a cheep from CEO Doug Ludlow.

In that tweet, Ludlow said MainStreet “took the difficult step of reorganizing and restructuring the company” this week. He did not say if these cuts affected all teams in the company or if any executives were laid off. He also did not say exactly how many employees will be affected by the measure.

Ludlow added:

We do not take this decision lightly, and we are doing everything in our power to provide as much transition assistance as possible (compensation, health care, recruitment and job placement)… We are taking this action because we believe there is a There is a very strong possibility that today’s incredibly tough market will only get worse, and potentially stay that way for months, if not years.

TechCrunch has reached out to the San Jose, California-based company for more details.

The startup built a business around helping startups discover research and development tax credits, from a pool of which it gets a 20% cut. In 2020, MainStreet crossed the $1 million ARR run rate threshold and helped the average MainStreet customer save $51,000, according to TechCrunch’s previous report. In 2021, MainStreet’s revenue exceeded $15 million, according to industry newsletter Not Boring. It’s unclear what these numbers look like today, but Ludlow’s tone suggests that growing challenges lie ahead.

“We think there is a strong chance that today’s incredibly tough market will only get worse, and potentially stay that way for months, if not years,” Ludlow continued in his Twitter thread. There have been a number of layoffs recently, including Cameo firing 87 of his team members and Amazon aggregator Thrasio confirming that he has begun laying off a portion of the company. Robinhood, a consumer savings and investment company, also announced it will cut 9% of staff, roughly 300 people.

MainStreet is backed by investors like SignalFire, Tusk Ventures, Shrug, Moxxie Ventures, Weekend Fund, Gradient Ventures, Sound, and SV Angels. According to Crunchbase, the company has raised $64.7 million in known venture capital to date.

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