Mercury CEO Says AI Is Breaking the Old Startup Model
Mercury CEO Says AI Is Breaking the Old Startup Model
Publish Date: 2026-06-09 04:07:00
Source Domain: www.pymnts.com
The distance between an idea and a functioning business has rarely been shorter. Entrepreneurs operate in a business environment where artificial intelligence (AI) is lowering the cost of starting companies. As result it is accelerating business formation and creating demand for banking experiences built around software rather than branch networks.
That shift is forcing financial institutions to reconsider how they serve entrepreneurs.
It was top of mind during a conversation with PYMNTS CEO Karen Webster and Mercury Co-Founder and CEO Immad Akhund. The shift sits behind Mercury’s recent $200 million Series D funding round, which valued the company at $5.2 billion and followed four consecutive years of profitability. The company also recently received conditional approval from the Office of the Comptroller of the Currency to establish Mercury Bank, N.A.
Akhund said the activities come as a new generation of entrepreneurs is rising.
“We saw 2.5x increase in applications in Q1 this year versus Q1 last year,” Akhund told Webster, noting that AI tools are making it possible for founders to build and launch businesses with fewer resources than were previously required.
Mercury’s customer base was initially concentrated among venture-backed startups. Today, it extends across eCommerce, professional services and a broader collection of digitally native businesses. More than 300,000 customers use its platform.
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Webster framed the change as one of the defining characteristics of the current technology cycle.
“The velocity at which these businesses are being created is really astounding,” she observed during the discussion. “I think it’s exciting.”
Building the Anti-Legacy Bank
Akhund’s view of traditional banking reflects his own experience as a founder. Before launching Mercury, he spent years building technology companies and navigating the challenges of entrepreneurship.
“Part of the reason I started Mercury is…
