May 20 (Reuters) – Mercury said on Wednesday it had raised $200 million at a $5.2 billion valuation in its latest funding round, led by investment \u200cfirm TCV, as it seeks to attract AI-native founders and businesses \u200cas banking clients.<\/p>\n
Global venture funding has remained strong in recent quarters, with a sizable portion directed \u200btoward companies integrating AI with their operations, as investors anticipate solid exit opportunities.<\/p>\n
Existing investors including Andreessen Horowitz, Coatue, CRV, Sapphire Ventures, Sequoia Capital and Spark Capital participated in Mercury’s latest round.<\/p>\n
The company’s co-founder and CEO Immad Akhund said AI was helping \u200ccompanies narrow the gap \u2060between ideas and viable businesses, creating opportunities for Mercury to compete in a market dominated by legacy banks.<\/p>\n
It operates through partner \u2060banks and does not have its own charter, the introduction of which would allow it to integrate Zelle, a digital payments network, enabling Mercury to offer a comprehensive \u200bbanking \u200bsolution for its core user base of \u200bfounders and startups.<\/p>\n
The company received conditional \u200capproval in April from the Office of the Comptroller of the Currency to establish Mercury Bank, a fully chartered national lender that would enable it to offer services directly to customers under full federal oversight.<\/p>\n
Mercury, which was set up to serve technology startups, also said it had achieved four consecutive years of \u200cprofitability on a GAAP net income as well \u200bas EBITDA basis. It has reached $650 million in \u200bannualized revenue.<\/p>\n
It said it has \u200bmore than 300,000 customers, including one in three U.S. startups, \u200cwith clients such as backend-as-a-service provider \u200bSupabase, voice AI platform \u200bElevenLabs and coding platform Lovable.<\/p>\n
“We believe the next generation of entrepreneurs will be AI native and will need a banking partner that helps them \u200brun their finances and \u200cbuild at the pace AI itself is setting,” said Neil Tolaney, \u200bGeneral Partner at TCV. “We see Mercury as that partner.”<\/p>\n
(Reporting by Pritam \u200bBiswas in Bengaluru; Editing by Pooja Desai)<\/p>\n","protected":false},"excerpt":{"rendered":"May 20 (Reuters) – Mercury said on Wednesday it had raised $200 million at a $5.2 billion valuation…\n","protected":false},"author":2,"featured_media":451717,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[345,27955,343,344,85,211085,46,15096,211084,211086,8475,303,125],"class_list":["post-451716","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-ai","tag-andreessen-horowitz","tag-artificial-intelligence","tag-artificialintelligence","tag-il","tag-investment-firm","tag-israel","tag-mercury","tag-mercury-bank","tag-sapphire-ventures","tag-sequoia-capital","tag-startups","tag-technology"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/451716","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=451716"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/451716\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/451717"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=451716"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=451716"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=451716"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}