San Francisco-based bank for startups raised $20m in Series A funding led by Charles River Ventures with participation from A16z. The post-money valuation is estimated to be $100m.
This latest funding comes on the heels of Mercury having launched only in April 2019, and is a result of what appears to be very strong demand for what it has to offer. In the first week of its launch it had 1,500 signups, and it has been growing at 40% each month since. To be sure, there are already a number of options on the market for a startup looking for a bank. Aside from traditional institutions that all offer special accounts for small businesses (which essentially is what a startup is), there is Silicon Valley Bank), and other challengers like Revolut and N26 that started first with consumers but are now increasingly also targeting smaller SMBs.