Skip to content
The Twenty Minute VCThe Twenty Minute VC

20VC Exclusive: Mercury Founder Launches First $26M Fund with Immad Akhund

Immad Akhund is the CEO of Mercury. Launched in 2019, Mercury has raised $500M in funding from Sequoia, Coatue, CRV, Andreessen Horowitz and others. He is a former part-time partner at Y Combinator and is an active angel investor, with more than 350 investments in startups including Rippling, AirTable, Rappi, Applied Intuition, and Substack. ---------------------------------------------- In Today’s Episode We Discuss: 00:00 Intro 00:53 Exclusive News: New Fund Announcement 01:49 Lessons from 350 Angel Investments 07:26 How Sequoia Came to Lead the Series C for Mercury 12:51 Biggest Wins and Misses in Angel Investing 33:09 Why Move From Angel to VC 38:52 AI Investments: Overhyped or Worthwhile? 48:52 Is It Wrong For Founders to Also Have Funds with LP Capital? 51:54 Raising a First Time Fund: Challenges & Surprises 53:56 The Future of Venture Capital 59:31 Quick-Fire Questions & Reflections ----------------------------------------------- Subscribe on Spotify: https://open.spotify.com/show/3j2KMcZTtgTNBKwtZBMHvl?si=85bc9196860e4466 Subscribe on Apple Podcasts: https://podcasts.apple.com/us/podcast/the-twenty-minute-vc-20vc-venture-capital-startup/id958230465 Follow Harry Stebbings on X: https://twitter.com/HarryStebbings Follow Immad Akhund on X: https://twitter.com/immad Follow 20VC on Instagram: https://www.instagram.com/20vchq Follow 20VC on TikTok: https://www.tiktok.com/@20vc_tok Visit our Website: https://www.20vc.com Subscribe to our Newsletter: https://www.thetwentyminutevc.com/contact ----------------------------------------------- #20vc #harrystebbings #immadakhund #ceo #mercury #banking #founder #ai #vc #sequoia #investing #startup

Immad AkhundguestHarry Stebbingshost
May 11, 20251h 4mWatch on YouTube ↗

At a glance

WHAT IT’S REALLY ABOUT

Mercury’s Immad Akhund Launches $26M Fund, Redefines Founder-Led Investing

  1. Immad Akhund, founder and CEO of Mercury, has raised a $26M institutional fund with partner Yash Doshi after making 350+ angel investments since 2016.
  2. He explains how his approach to angel investing evolved, why he strongly prefers repeat founders, and how he thinks about valuation, dilution, and timing exits.
  3. Akhund details his thesis for non‑lead, small checks into ~60 companies, his skepticism of overheated AI seed valuations, and why he’s increasingly drawn to less crowded areas like space and hard tech.
  4. He also discusses Mercury’s journey, competition with Brex and Ramp, building culture early, and why he believes Mercury can become a $100B+ financial platform.

IDEAS WORTH REMEMBERING

5 ideas

Founder‑investors must suppress their ego and back the founder’s vision, not their own.

Akhund learned early that trying to steer founders toward his ideas didn’t work; the best outcomes (like Rappi) came from founders who barely needed him and just executed their own plan.

High valuations can be acceptable if you raise enough and don’t overspend.

He’d repeat Mercury’s 120x revenue Series B because they raised sufficient capital and were disciplined with burn, arguing the real mistake is taking a huge valuation on too little money and then being forced back to market.

Serial founders with a chip on their shoulder are disproportionately powerful bets.

His biggest wins (Truebill, Rippling, etc.) came from repeat founders tackling hard, competitive markets and still out‑executing incumbents; he heavily biases toward experienced founders who still feel they have something to prove.

Youth and naivety are under‑appreciated; don’t over‑penalize inexperience.

He cites passing on Scale AI because the founders seemed too young, now recognizing that underestimating ambitious young teams can be a major blind spot and that youthful ‘unreasonable’ belief can be an asset.

Seed investing only makes sense with a portfolio; do 20–30+ checks or don’t start.

Because returns are driven by a small number of decacorns, he argues angels need enough shots to learn, iterate, and diversify—dabbling in 3–5 deals rarely moves the needle.

WORDS WORTH SAVING

5 quotes

You really have to remove your ego and your ideas and really listen to what they want to do.

Immad Akhund

The mistake is to not raise enough money at a high valuation. And then number two, don’t spend the money.

Immad Akhund

Being an entrepreneur is irrational, but being a serial entrepreneur is especially irrational.

Immad Akhund

We’re in the flashlight and fart apps era of AI.

Immad Akhund

These two markets—banking and financial software—should be the same market. The only reason they’re separate is because banks don’t know how to build software.

Immad Akhund

Immad Akhund’s transition from prolific angel investor to managing a $26M fundLessons from 350+ angel investments and how founders should interact with investorsValuation, dilution, and fundraising strategy across market cyclesFounder archetypes: serial vs. first‑time, naivety vs. domain expertiseCurrent venture dynamics in AI, defensibility, and revenue qualitySector theses: fintech, space tech, and avoiding peak‑hype marketsBuilding Mercury: competition, culture, product focus, and long‑term vision

High quality AI-generated summary created from speaker-labeled transcript.

Get more out of YouTube videos.

High quality summaries for YouTube videos. Accurate transcripts to search & find moments. Powered by ChatGPT & Claude AI.

Add to Chrome