Sequoia Capital in Talks to Lead $3 Billion+ Funding Round for Mercury Technologies

Sequoia Capital is reportedly in discussions to lead a major investment round for Mercury Technologies Inc., a San Francisco-based digital banking startup, Bloomberg reports. The deal, which could value the company at over $3 billion, comes amid a renewed wave of investment in the financial technology sector.

The news follows a period of relative inactivity in fintech dealmaking, attributed to rising interest rates and inflated valuations. Mercury is seeking to raise hundreds of millions of dollars in the funding round, according to a source familiar with the matter.

Mercury, founded in 2017 by Immad Akhund, caters specifically to startups, offering a unique combination of physical credit cards and online banking tools, including expense management software. The company's growth has been fueled in part by the collapse of Silicon Valley Bank in 2023, which forced many startups to seek alternative banking solutions.

The Information, which previously reported some funding details, noted that Mercury recently achieved $500 million in annualized revenue. The current deal is expected to double the company's valuation from its previous $1.6 billion valuation in 2021, following a $120 million funding round.

Mercury's existing investors include prominent venture capital firms such as Andreessen Horowitz, Coatue Management, and CRV. The company is not alone in attracting significant VC investment in recent weeks, as other prominent fintech companies, including Stripe Inc. and Plaid Inc., are also reportedly in talks for secondary share sales, according to Bloomberg. However, representatives for Mercury and Sequoia have declined to comment on the funding discussions.