Banking Startup Mercury In Financing Talks As Investors Warm to Fintechs

Investors are warming to fintech startups after a spike in interest rates made these once-hot companies look overvalued.

Mercury, a business banking startup whose profile soared after the collapse of Silicon Valley Bank nearly two years ago, is in talks to raise more capital, targeting about $250 million, according to a person with direct knowledge of the funding discussions.

It has engaged in financing talks since reaching $500 million in annualized revenue recently, according to a person who spoke to the company. The eight-year-old startup was valued at $1.6 billion in 2021.