Mercor , an AI-driven recruiting startup founded by three 21-year-old Thiel Fellows, has raised $100 million in a Series B funding round, valuing the company at $2 billion. Led by Felicis, with participation from Benchmark, General Catalyst, and DST Global, the funding marks an eightfold increase from its previous valuation of $250 million in 2024. Mercor automates resume screening, candidate matching, AI-powered interviews, and payroll management, claiming to reduce hiring bias while enhancing efficiency. The startup has expanded its talent pool, primarily sourcing candidates from India, the U.S., Europe, and South America. With a $75 million ARR and partnerships with top AI labs, Mercor aims to redefine hiring by shifting toward a project-based, gig-like workforce model in an AI-dominated economy.

Menlo Park, CA – February 20, 2025 – AI-driven recruitment startup Mercor has announced the successful completion of a $100 million Series B funding round, bringing its valuation to $2 billion. The round was led by Felicis, with participation from Benchmark, General Catalyst, and DST Global. Founded in 2023 by three Thiel Fellows, Mercor has rapidly gained traction as a technology-driven solution for streamlining talent acquisition, leveraging AI-powered candidate screening, automated interviews, and payroll management.

From Niche to Broad Talent Sourcing

Initially focused on software engineering roles, Mercor has since expanded its reach to include professionals in consulting, research, finance, healthcare, and legal sectors. The platform employs automated skills assessments through a 20-minute AI interview, creating a comprehensive candidate profile to facilitate job matching.

CEO Brendan Foody emphasized that Mercor’s approach is not merely about automation but about enhancing efficiency in identifying top-performing candidates.

“Our goal is to make hiring more predictive and data-driven rather than relying on traditional résumé reviews and subjective decision-making.”

While Mercor claims that its AI-driven approach reduces human biases, concerns remain about the extent to which AI can make fair and objective hiring decisions. Nonetheless, leading AI companies such as OpenAI have already adopted Mercor’s platform, suggesting that AI-assisted hiring is gaining acceptance in the industry.

Rapid Growth and Business Model

Mercor has experienced significant revenue growth, with its annual recurring revenue (ARR) reaching $75 million, primarily driven by hourly finder’s fees charged to employers.

• As of September 2024, Mercor was growing 50% month-over-month, with ARR in the tens of millions.


• AI labs account for the majority of its client base, as companies increasingly seek specialized and flexible talent pools.


• Mercor’s valuation multiple of 27x ARR is in line with other fast-growing AI-driven companies, though some AI startups command valuations up to 50x ARR.

With a strong foothold in India and the U.S., Mercor is also seeing rapid expansion in Europe and South America, capitalizing on the growing demand for remote and project-based employment models.

Challenges and the Future of AI Hiring

While AI-driven recruitment presents opportunities for efficiency and scalability, it also raises concerns about job displacement and fairness in hiring.

• Bias and Fairness: While AI can standardize hiring criteria, its ability to eliminate bias remains an open question.


• Impact on HR Professionals: Some worry that AI will reduce the need for traditional HR functions, while others argue it will augment human decision-making rather than replace it.

According to Foody, AI-driven hiring is not about replacing human workers but rather optimizing where human talent is most needed.

“If AI automates 90% of the economy, then the remaining 10% of human-led work becomes exponentially more valuable. The challenge is ensuring that every position is filled by the best possible person for the role.”

As businesses continue to prioritize expertise over tenure, the shift toward project-based, on-demand hiring could reshape traditional workforce structures. Mercor’s latest funding round indicates strong investor confidence in AI-powered talent acquisition, even as the industry navigates the balance between automation and human expertise.