Mercor, an AI recruiting startup founded by three 21-year-old Thiel Fellows, has raised $100 million in its latest funding round, bringing its valuation to $2 billion. The round was led by Felicis, based in Menlo Park, with participation from existing investors like Benchmark and General Catalyst, as well as DST Global and Menlo Ventures.
Founded in 2023, Mercor helps automate the hiring process using AI. The platform offers employers who upload job descriptions the best-matching candidates, as well as services like resume screening, candidate suitability matching, AI-powered interviews, and payroll management. The company claims that this automated system not only accelerates the hiring process but also helps remove bias from it.
Mercor conducts a 20-minute AI interview for job seekers that evaluates their skills and matches them with relevant full-time, part-time, or hourly positions. The company collects this data to refine its predictions on which candidates will perform best in the future.
Mercor is primarily focused on hiring software engineers and technology professionals, but as demand grows, it is also attracting professionals like consultants, PhD students, bankers, doctors, and lawyers.
With an annual revenue of $75 million, Mercor is experiencing rapid growth, with a significant portion of its revenue coming from AI labs. The company now works with the world's top 5 AI labs, including OpenAI.
Mercor also addresses concerns about AI replacing jobs, with CEO Brendan Foody stating that AI does not replace the workforce but rather makes work more valuable, increasing the demand for human resources.
The company aims to continue growing with more efficient hiring processes and help more companies find the right fit for projects, leveraging expertise over tenure.
