Mercor Raises $100M to Scale AI Recruiting Platform

Deal News | Feb 20, 2025 | Felicis Ventures LLC

Mercor Raises $100M to Scale AI Recruiting Platform

Mercor, an AI recruiting startup founded by three 21-year-old Thiel Fellows, has secured $100 million in a Series B funding round led by Felicis Ventures, bringing its valuation to $2 billion. The platform, which uses AI to automate resume screening, candidate matching, and payroll management, aims to optimize human talent. Major investors include Benchmark, General Catalyst, DST Global, and Menlo Ventures, with previous rounds led by General Catalyst and Benchmark in 2023 and 2024, respectively. Mercor claims to improve hiring processes by removing human bias, despite ongoing debates about the reliability of AI in unbiased hiring and job displacement. The startup, experiencing rapid growth with significant ARR, serves top AI labs such as OpenAI. CEO Brendan Foody argues that in a predominantly automated economy, human roles will focus on areas outside AI's capabilities, promoting a gig-like work model.

Sectors

  • Technology
  • Human Resources

Geography

  • United States – The primary location for Mercor and Felicis Ventures, with the company headquartered in Menlo Park and engaging major U.S.-based investors.
  • India – India is noted as the largest source of talent for Mercor, emphasizing its global reach in recruitment.

Industry

  • Technology – This industry is relevant as Mercor leverages artificial intelligence to revolutionize the recruiting process, automating tasks such as resume screening and candidate matching.
  • Human Resources – Human Resources is a core area for Mercor, as they provide an AI-powered platform specifically designed to enhance recruitment processes and match talent effectively.

Financials

  • $100 million – The amount raised by Mercor in its Series B funding round.
  • $2 billion – The valuation of Mercor following the Series B funding round.
  • $75 million – Mercor's current annual revenue run rate (ARR).
  • 27x – The ARR multiple corresponding to Mercor's $2 billion valuation.
  • 50x – A noted potential ARR multiple for the fastest-growing generative AI companies.

Participants

NameRoleTypeDescription
MercorTarget CompanyCompanyAn AI recruiting startup founded by three Thiel Fellows with the aim to optimize the hiring process using advanced technologies.
Felicis VenturesPrivate Equity FirmCompanyA Menlo Park-based private equity firm that led the Series B funding round for Mercor.
BenchmarkInvestorCompanyA venture capital investor that participated in Mercor's Series B and previously led its Series A round.
General CatalystInvestorCompanyAn investment firm that participated in Mercor's Series B and led its seed round.
DST GlobalInvestorCompanyA global investment company participating in Mercor's funding round.
Menlo VenturesInvestorCompanyA participant in Mercor's Series B round.
Brendan FoodyCEO and Co-founderPersonCEO of Mercor and one of its young founders aiming to revolutionize recruiting through AI.
Adarsh HiremathCTO and Co-founderPersonCTO of Mercor and one of the startup's young co-founders.
Surya MidhaCOO and Co-founderPersonCOO of Mercor and part of the founding team.