Earlier this week, a new AI recruitment company raised $30 million to challenge the traditional agency recruitment model.
Is this the beginning of AI's disruption on the recruitment agency model?
Mercor is an AI-powered platform that sources, vets, and pays your next employees.
They use AI to conduct interviews and vet job candidates, boosting their candidate reach and reducing their need to hire a large number of recruitment consultants.
A couple of days ago, they raised $30 million from a funding round led by Benchmark, including Peter Thiel, Larry Summers and Jack Dorsey as notable investors.
We’re an AI-powered platform that sources, vets, and pays your next employees.
💹 Mercor was valued at $250 million.
Other notable investors included Peter Thiel, Jack Dorsey, Adam D'Angelo, Larry Summers, and Chris Re.
📰 What’s their business model?
The platform aims to streamline hiring, allowing companies to browse, select, and hire candidates quickly.
Mercor never charges candidates themselves.
They make money by successfully placing candidates and charging companies a recruiting fee, making them one of the first AI recruitment agencies.
Rather than having Agency consultants screen candidates, they use AI interviews which helps them scale up and reduce their overhead.
In a recent case study, they were only able to hire 500 software engineers for a leading AI unicorn.
Considering they were only founded in January last year, that’s a significant valuation for a company with only 300,000 people in their candidate pool.
What do you think about the business model?
Is this the start of companies offering AI interviews, matching and placements in the agency sector?
