(Bloomberg) — Sequoia Capital is in talks to lead an investment in digital banking startup Mercury Technologies Inc. at a valuation of more than $3 billion, according to a person familiar with the matter.
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The deal comes amid a renewed surge in financial technology investment, following a long period in which rising interest rates and inflated valuations led to a downturn in fintech dealmaking.
San Francisco-based Mercury is raising hundreds of millions as part of the deal, said the person, who asked not to be identified discussing private information. Representatives for Mercury and Sequoia declined to comment.
The company, founded in 2017 by Immad Akhund, provides a physical credit card and online banking tools tailored to startups, including expense management software. Its business was boosted by the sudden fall of Silicon Valley Bank in 2023, which sent startups scrambling to find new banking partners.
The company recently reached $500 million in annualized revenue, according to the Information, which earlier reported some of the funding details. The deal is expected to double Mercury’s valuation from $1.6 billion in 2021, after it raised $120 million.
Mercury’s existing investors include Andreessen Horowitz, Coatue Management and CRV.
The company is not the only financial technology startup that’s brought in cash from VCs in recent weeks. Companies including Stripe Inc. and Plaid Inc. are both in talks with investors for secondary share sales, Bloomberg reported.
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