Mercor, an AI-powered hiring startup founded by three young Thiel Fellows, has raised $100 million in a Series B funding round, according to TechCrunch.
The round was led by Felicis, a venture capital firm based in Menlo Park, valuing Mercor at $2 billion—eight times its previous worth. Other investors include Benchmark, General Catalyst, DST Global, and Menlo Ventures.
Mercor previously raised $3.6 million in seed funding in 2023, led by General Catalyst, followed by a $32 million Series A in 2024, backed by Benchmark at a $250 million valuation.
This investment makes Mercor’s co-founders—CEO Brendan Foody, CTO Adarsh Hiremath, and COO Surya Midha—some of the youngest founders of a billion-dollar company. Mercor, which is supported by tech leaders like Peter Thiel, Jack Dorsey, and Adam D’Angelo, says the new funding will help them improve their AI-driven hiring process and connect people with the right jobs.
### How Mercor Works
Founded in 2023, Mercor uses artificial intelligence to simplify hiring. The platform automates resume screening, candidate matching, AI-powered interviews, and payroll management. Employers upload job descriptions, and Mercor suggests the best candidates.
Mercor claims its system not only speeds up hiring but also removes bias, though AI’s ability to eliminate bias is still debated. Despite this, major tech companies, including OpenAI, use Mercor’s hiring tools, which the startup says can identify better candidates than traditional methods.
Job seekers complete a 20-minute AI interview that assesses their skills and creates a profile. The system then matches them with full-time, part-time, or temporary job opportunities.
“We analyze candidates’ performance data to improve our predictions of who will succeed in the future,” said Foody.
### Expanding Talent Pools
Mercor initially focused on hiring software engineers and professionals in operations, product development, content creation, and design. Today, software engineers are still the most sought-after, but AI labs are increasingly looking for consultants, PhDs, bankers, doctors, and lawyers.
To meet growing demand, Mercor has expanded its talent pool, helping HR teams review 468,000 job applications. India remains the largest source of talent, followed by the U.S., while Europe and South America are seeing rapid growth.
### Revenue Growth & Market Impact
Mercor’s growth has led to a sharp increase in revenue, which comes from charging hourly finder’s fees to employers.
As of last September, the startup was growing at a rate of 50% per month, with an annual revenue run rate (ARR) in the “tens of millions.” At its current pace, it has reached a $75 million ARR, with most revenue coming from AI labs. The company now works with the top five AI research labs, including OpenAI.
Mercor’s valuation of $2 billion gives it a 27x ARR multiple, which is reasonable compared to some AI companies that receive valuations of up to 50 times ARR.
### AI and the Future of Work
One concern about Mercor’s technology is whether it will contribute to job displacement as AI automates more tasks. However, Foody argues that Mercor doesn’t replace workers but instead helps match people to jobs where human skills are still essential.
“If AI automates 90% of the economy, then humans become even more valuable for the remaining 10%. Every task they perform becomes 10 times more important,” he said. “Work is shifting toward a more flexible, gig-based model.”
Foody believes companies will move away from long-term hires and instead look for specialists to complete short-term projects.
“Smarter job matching makes work more efficient,” he added. “Every project should be handled by the best person for the job, not just whoever is available.”
As for its own hiring, Mercor, with an average team age of 22, recently brought in the former Head of Human Data Operations from OpenAI and the previous Head of Growth from Scale.
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