Startups are learning to thrive in uncertainty—and for many, the answer is AI. A new report from fintech platform Mercury finds that early-stage founders across industries are not just weathering 2025’s choppy economy, but in some cases gaining confidence, thanks to flexible funding strategies and aggressive AI adoption.
The report, “The New Economics of Starting Up,” is based on a survey of 1,500 U.S. founders and executives spanning tech, ecommerce, financial services, professional services, and more.
AI: Growth Engine, Not Job Killer
Despite 89% of respondents citing economic uncertainty as a top concern, 87% said they’re more confident about financial prospects than in 2024. That optimism spikes among startups embracing AI:
-
60% of AI adopters said confidence had “significantly improved” vs. just 28% of non-adopters.
-
AI-forward companies were 3x more likely to be scaling teams and 2x more likely to be chasing larger funding rounds.
-
79% of AI adopters said they’re hiring more because of AI, particularly in sales, marketing, business development, and customer service.
So much for the “AI kills jobs” narrative—at least in the startup trenches, AI appears to be fueling headcount growth.
Funding: VC Isn’t the Default
Mercury’s survey also highlights a shift in how founders think about capital. While bootstrapping remains common (61%), startups are increasingly stacking funding types:
-
47% tapped business loans
-
41% used revenue-based financing
-
22% turned to angels
-
25% raised venture capital
VC isn’t disappearing—especially in tech, where 10% of companies raised $20M+ in their last round—but it’s far from the only playbook. Startups using four or more funding sources were 40% more likely to have closed a $5M+ round than those sticking to one.
Growth: Leaner, But Sector-Driven
The report paints a picture of startups scaling differently depending on sector:
-
Retail: a “scale fast or fail fast” model, with only the survivors making it past year five.
-
Professional services: slower burn, with growth tied to client relationships.
-
Ecommerce: high-velocity growth, but higher burnout before maturity.
-
Financial services: steadier scaling once product-market fit hits.
Rising Costs, Rising Spend
Costs are up almost everywhere—customer acquisition (71%), infrastructure (69%), and talent retention (65%) led the pack. Yet 79% of founders still expect to spend more in the next year, with AI tools the biggest target for increased investment (73%).
Contractors as a Scaling Strategy
Contract talent is no longer just a stopgap—it’s strategic. 61% of startups said they’re reliant on contractors, and that number jumps dramatically among AI adopters. Founders are using freelancers not just for speed, but to tap global talent pools while keeping operations lean.
Why It Matters
Mercury’s findings reinforce a broader trend: the startup playbook is shifting from single-track growth to multi-pronged adaptability. AI isn’t slowing hiring—it’s accelerating it. VC isn’t the kingmaker—it’s one piece of a larger capital stack. And contractors aren’t a cost-control lever—they’re critical to agility.
In a year defined by volatility, startup leaders appear to be rewriting the rules of scaling—and writing them with a lot more confidence than they had in 2024.
Join thousands of HR leaders who rely on HRTechEdge for the latest in workforce technology, AI-driven HR solutions, and strategic insights
Business Wire, a Berkshire Hathaway company, is the global leader in press release distribution and regulatory disclosure. Public relations, investor relations, public policy and marketing professionals rely on Business Wire for secure and accurate distribution of market-moving news and multimedia. Founded in 1961, Business Wire is a trusted source for news organizations, journalists, investment professionals and regulatory authorities, delivering news directly into editorial systems and leading online news sources via its multi-patented NX network. Business Wire’s global newsrooms are available to meet the needs of communications professionals and news media worldwide.
