Mercor, a San Francisco-based AI hiring startup founded by 21-year-old Brendan Foody, has achieved a remarkable $2 billion valuation in its latest funding round. The company raised $100 million, with contributions from prominent investors such as Felicis, General Catalyst, DST Global, Benchmark, and Menlo Ventures. Despite its young age, Mercor is already profitable, expecting to generate $1 million in profit and $7 million in revenue this month.
Foody, who won a prestigious fellowship last year, plans to increase the company’s workforce from 75 to 100 employees by the end of the year.
Mercor secures $2 billion valuation
Mercor operates in a competitive landscape, seeking to revolutionize the hiring process through AI technology alongside companies like Rippling, HireVue Inc., and ZipRecruiter Inc.
The startup’s rapid growth and profitability set it apart in the crowded field of AI hiring solutions. Foody credits the fellowship with accelerating Mercor’s growth, providing crucial networking opportunities and a prestigious platform. Interestingly, he did not actively seek out investors for this latest round; instead, investors approached him, and the funding deal was finalized within just two weeks.
As AI startups continue to attract record levels of investment, with US startups securing nearly $100 billion in funding last year, Mercor’s success story highlights the sustained enthusiasm for AI technology and its potential to transform various industries, including the hiring process.
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