San Francisco-based Mercor has closed a $350 million Series C funding round at a $10 billion valuation, marking a five-fold jump from its $2 billion valuation just eight months ago.
Felicis Ventures led the round, with participation from Benchmark, General Catalyst, and new investor Robinhood Ventures.
Mercor Funding History
| Round | Amount | Valuation | Lead Investor | Year |
|---|---|---|---|---|
| Seed | $3.6M | – | General Catalyst | 2023 |
| Series A | $32M | $250M | Benchmark | 2024 |
| Series B | $100M | $2B | Felicis Ventures | Feb 2025 |
| Series C | $350M | $10B | Felicis Ventures | Oct 2025 |
👉 Total Raised: $485.6 million
From AI Recruiter to Training Powerhouse
Founded in 2023 by three 21-year-old Thiel Fellows—Brendan Foody, Adarsh Hiremath, and Surya Midha—Mercor initially launched as an AI-powered hiring platform.
The startup quickly pivoted to connecting AI labs with specialized domain experts to train foundational AI models. Mercor now provides scientists, doctors, lawyers, and other professionals to major AI companies including OpenAI and Meta, charging hourly finder's fees.
This pivot proved timely after leading AI companies cut ties with data-labeling giant Scale AI following Meta's $14.3 billion investment in the company.
Company Overview
| Parameter | Details |
|---|---|
| Valuation | $10 billion |
| Annual Revenue | ~$450M (annualized) |
| Profitability Status | Profitable (H1 2025: $6M profit) |
| Employees | 30-75 |
| Founded | 2023 |
| Headquarters | San Francisco, CA |
| AICurator Rating | 9.2/10 |
| Investment Grade | A+ (Strong fundamentals, profitable, massive TAM) |
Why This Deal Matters?
Mercor's explosive growth justified the massive valuation jump. The company is approaching $450 million in annualized revenue, up from $75 million in February 2025.
More impressively, Mercor achieved profitability in the first half of 2025, generating $6 million in profit—a rare feat for high-growth startups.
The funding will accelerate Mercor's expansion into reinforcement learning software infrastructure and development of an AI-powered recruiting marketplace. The company is scaling its platform to eventually match professionals across industries.
Quick Deal Facts
Who led the investment?
Felicis Ventures led the Series C, with Benchmark, General Catalyst, and Robinhood Ventures participating.
What will the capital fund?
Development of reinforcement learning infrastructure, expansion of the AI-powered recruiting marketplace, and international growth.
How profitable is Mercor?
The company generated $6 million in profit in H1 2025 while approaching $450 million in annualized revenue.
What's Next?
Mercor faces both opportunities and challenges ahead. The company is currently in a lawsuit with Scale AI over alleged trade secret misappropriation, while competing with rivals like Surge AI.
However, with Scale AI's diminished market position and surging demand for AI model training, Mercor is positioned to dominate this critical sector.
The company's long-term vision extends beyond AI training to building a comprehensive talent marketplace across all industries.
Connect with Mercor
| Platform | Link |
|---|---|
| Website | mercor.com |
| linkedin.com/company/mercor-ai | |
| Official Blog | mercor.com/blog |
