Brex Explained

Brex Inc.
Type:Private
Industry:Fintech
Key People:[1]
Hq Location:No headquarters[2]
Num Employees:Approximately 1,200 (2024)[3]

Brex Inc. is an American financial service and technology company that offers business credit cards and cash management accounts to technology companies.[4] Brex cards are business charge cards, which require at least $50,000 in a bank account if professionally invested, if not with $100,000 to open, and cardholders who default won't damage their personal credit or assets.[5] Emigrant Bank issues the Brex cards.

History

Brex was founded by Brazilian entrepreneurs Henrique Dubugras and Pedro Franceschi on January 3, 2017. They had previously founded an online payments company, Pagar.me, before selling it to Stone.[6] [7] [8]

Brex did not start as a fintech startup but rather as a VR startup, however the founders pivoted the company three weeks into Y Combinator's 12-week accelerator program.[9]

In February 2021, the company announced a submission application with the Federal Deposit Insurance Corporation (FDIC) and the Utah Department of Financial Institutions (UDFI) to establish an industrial bank named Brex Bank, a wholly-owned subsidiary of Brex. According to TechCrunch, the subsidiary appointed a former Silicon Valley Bank (SVB) executive as CEO.[10]

In April 2022, Brex launched Brex Empower, a financial software platform to help people comply with their employers' expense policies.[11] In June 2022, Brex exited the small and midsize businesses (SMB) market, shifting the company's focus to serving enterprise customers.[12] In August 2022, Brex named Doug Adamic as the company's new Chief Revenue Officer.[13]

According to CNBC, Brex received billions of dollars in deposits from SVB customers on March 9, 2023—a day prior to SVB's collapse.[14]

In January 2024, Brex announced that it was laying off 300 of its employees, or roughly 20% of its workforce. The company cited slowing growth as a reason for the decision.

Growth

Brex Inc. is backed by Peter Thiel, Ribbit Capital, Y Combinator, DST Global, Kleiner Perkins, Lone Pine Capital, and Greenoaks.[15] [16] [17] [18] [19]

Notes and References

  1. Web site: Fintech Brex abandons co-CEO model, talks IPO, cash burn and plans for a secondary sale . 12 June 2024 .
  2. Web site: Calvey . Mark . 19 August 2021 . Exclusive: Brex joins Coinbase in embracing no-headquarters model . American City Business Journals.
  3. Web site: Tech finance co Brex downsizes . 31 January 2024 .
  4. Web site: Brex Small Business Card: If Square Could Work, Is There Potential Here?. 2018-06-19. PaymentsJournal. en-US. 2019-11-19.
  5. Web site: Home . upgradepoints.com . 19 December 2019.
  6. Web site: Schoenberg . Gregg . 8 November 2018 . Charge card startup Brex aims for decacorn success . TechCrunch . subscription.
  7. Web site: StoneCo. Ltd. Form F-1. 2019-11-19. www.sec.gov.
  8. Web site: StoneCo. Ltd. Form 6-K/A. 2019-11-19. www.sec.gov.
  9. News: Rudgeair . Peter . 5 October 2018 . The College Dropouts Who Rode Credit Cards Into The Billion-Dollar Startup Club . The Wall Street Journal . subscription.
  10. News: Brex applies for bank charter, taps former Silicon Valley Bank exec as CEO of Brex Bank. TechCrunch. Azevedo. Mary Ann.
  11. Web site: Azevedo . Mary Ann . 2022-04-13 . Fintech Brex bets big on software, lands DoorDash as a customer . 2022-09-22 . TechCrunch . en-US.
  12. Web site: Lawler . Ryan . 2022-06-17 . Scoop: Brex exiting SMB market to focus on enterprise customers . 2022-09-22 . Axios . en.
  13. Web site: Brex . Brex Names Doug Adamic as Chief Revenue Officer . 2022-09-22 . www.prnewswire.com . en.
  14. Web site: Son . Hugh . March 10, 2023 . Fintech startup Brex got billions of dollars in Silicon Valley Bank deposits Thursday, source says . CNBC . en.
  15. Web site: About Us - Brex . 2023-03-12 . brex.com . Brex is backed by Y Combinator, Kleiner Perkins, DST Global, PayPal co-founders Max Levchin and Peter Thiel, Lone Pine Capital, and fintech specialist Ribbit Capital. . 2023-03-07 . https://web.archive.org/web/20230307231920/https://www.brex.com/about . bot: unknown .
  16. News: 2023-03-07 . CFOs Will Get Their Own AI Chatbot as Part of Brex Project . en . Bloomberg.com . 2023-03-12 . Brex, a six-year-old startup backed by Tiger Global and PayPal Holdings Inc. co-founders Max Levchin and Peter Thiel, is valued at more than $12 billion and counts companies such as DoorDash Inc. and Airbnb Inc. among its clients..
  17. News: Kruppa. Miles. 2021-04-02. Publicity-shy VC firm Greenoaks has bumper year. Financial Times. 2021-10-26.
  18. Web site: Insider . Brex's $57 Million Pitch Deck Insider . 2023-03-12 . www.businessinsider.com . Brex already has more than 1,000 customers signed up with the help of backing from investors including PayPal co-founders Peter Thiel and Max Levchin, early Facebook investor Yuri Milner, former Visa CEO Carl Pascarella, and esteemed startup incubator Y Combinator..
  19. Web site: Fintech Startup Brex Collects $50 Million Series B . 2023-03-12 . WSJ . en-US.

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