Fintch unicorn Mercury valued at $1.6 billion

San Francisco-based Mercury closed a $120 million funding round at a $1.6 billion valuation. The round was led by Coatue, with participation from Andreessen Horowitz, CRV, and Sapphire Ventures.

Founded in 2017 and launched in 2019, the company provides banking services to startups; currently reaching over 40,000 businesses . “Our focus is as singular as ever: we still want to turn banking into something like magic. We’ll use this new funding to expand our team and continue building products that help you scale. We want to build something truly great together, for startups, ecommerce, investors, creators, nonprofits, and beyond.”

To apply for a Mercury account,  a customer will need a US company with a federal EIN, a company’s official formation documents, and a government ID. Mercury makes money when its debit cards are used (known in the industry as “interchange fees”, paid by merchants that accept the cards), and as a percentage of return on Treasury deposits. “We can accept most U.S. companies that aren’t money services businesses or involved with adult entertainment, marijuana or internet gambling. Our product is geared towards tech companies, so it might not be the best fit for some other businesses, especially ones that frequently deal with physical cash. We can’t open accounts for sole proprietors or trusts.”

Mercury uses Plaid Technologies  to allow users to connect their other business bank accounts with Mercury. “This enables us to facilitate quick transfers between accounts and centralize your financial data on one dashboard.”