Brex builds B2B financial products, including a corporate card for technology companies.
Brex was founded by Henrique Dubugras and Pedro Franceschi, two engineers who previously founded Pagar.me. Brex is backed by the co-founders of PayPal, Max Levchin and Peter Thiel, Y Combinator, Ribbit Capital, Yuri Milner, and Carl Pascarella, the former CEO of Visa.
Brex does not require companies to personally guarantee their credit cards, nor do they require proof of cash flows, a security deposit or a FICO credit score for approval. Rather, Brex uses a companies banking information to underwrite their cards. This way, cash-rich companies, or startups who have received a lot in funding, can receive a card, which they can divvy up amongst their employees and set custom limits per card per employee.
In February 2019, Brex and MasterCard announced Brex would begin issuing World Elite MasterCards for Business, and would upgrade current cards to the same program. This included an enhanced rewards structure and travel benefits. This announcement went in conjunction with Brex's launch of fraud protection technology, including "no questions asked" fraud support.
Part of their credit offering, Brex included an expense management software which analyzed spending by vendor and allowed users to text images of their receipts in reply to expense notifications.
Brex charges $5 per card, after five authorized cards, per month and makes money through transaction fees. They don't charge interest as the cards balance has to paid in full at the end of the month. And there is no annual fee.
Brex for startups
Essentially their initial product, Brex's startup focused offering includes rewards focused on the needs and spending patterns of startups. The card balance must be paid off a the end of each month, or else it is cancelled.
Brex for ecommerce
Similar to the Brex for startups card, the Brex for ecommerce is different in that it offers users 60 days to pay their balance in full, rather than the 30 offered on their traditional card.
Brex for Life Sciences
The Brex for Life Sciences offers companies operating in the theater of the Life Sciences to earn specific rewards. Otherwise the card is the same as the Brex for startups.
Launched in 2019, Brex Cash is a product designed to replace a traditional bank account. A business cash management account integrated with the Brex card, Brex cash allows customers to send payments with no transaction fees while earning rewards redeemable for cash back, travel or air miles.
Brex Cash offers a 1.6% yield on deposited money, which is achieved through Brex using the money to purchase securities in US Treasuries and low-risk commercial paper. When the customer withdraws cash, Brex then sells the shares of those securities for the requisite amount.
The account is protected by the Securities Investor Protection Corporation (SIPC) which protects brokerage accounts up to $500,000 and specializes in protecting customers from the loss of cash and securities.
Seed - Y Combinator
In March, 2017, Brex graduated from Y combinator with $120,000 in funding for its Seed round.
In April, 2017, Brex held a Series A round of financing which raised $6.5 million. Investors included Y Combinator and Ribbit Capital.
Announced in April 2018, Brex raised $50 million in their Series B funding. Y Combinator Continuity fund led the funding round, which included participation from Ribbit Capital, Peter Thiel, Max Levchin, Chase Coleman and Carl Pascarella.
Brex raised $125 million in funding in October 2018. The round was led by GreenOaks Capital and DST Global. Other investors included RIbbit Capital, Y Combinator, Peter Thiel, Mindset Ventures, Larry Summers, Justin Mateen, Jaws Ventures, IVP (Institutional Venture Partners) and Greyhound Capital. The post-money valuation of Brex was $1.1 billion.
In April of 2019, Brex announced $100 million in debt financing raised from Barclays Investment Bank.
Brex announced $100 million funding in a Series C extension round in June 2019. Kleiner Perkins Digital Growth Fund led the round with participation from Y Combinator Continuity fund, GreenOaks Capital, IVP (Insititutional Venture Partners), Ribbit Capital and DST Global. Brex's post-money valuation was $2.6 billion.
In March of 2019, Brex announced their acquisition of Elph. Elph was a San Francisco-based startup who built digital payment infrastructure on blockchain technology. They specialized in tools for developers to accept cryptocurrency payments and for consumers to store, manage and transact their cryptocurrency.
Brex Secures $150 Million in Capital from DST, Lone Pine Capital, and Others.
Brex acquires three companies to build out its bank alternative for startups.
In October 2018 Brex completed their series C round with $125 million in funding.
Brex secures a $100 million debt financing from Barclays Investment Bank.
Series B funding
In April 2018 Brex completed their series B round with $50 million in funding.
Series A funding
In April 2017 Brex completed their series A funding round with $6.5 million in funding.
Brex graduates from Y combinator.
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- CompanyA company, abbreviated 'co.', is a legal entity made up of an association of people, be they natural, legal, or a mixture of both, for carrying on a commercial or industrial enterprise.
- Cluster: Financial technologyA cluster of topics related to financial technology.
- Unicorn (finance)A privately held startup company with a valuation above $1 billion.