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Brex

Brex

Brex is a credit card company that issues corporate credit cards with no security deposit.

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.

Products
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.

Brex Cash

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.

Brex Crypto Rewards

In May 2021, Brex announced the launch of the first crypto rewards programs for corporates.

The offering allows Brex’s customers, notables include Airbnb, Classpass, and startup accelerator Y Combinator, will be able to exchange Brex reward points for bitcoin and ether the same way they’d redeem them for miles, gift cards, cash, or travel.

Brex’s rewards partner, TravelBank, will power the zero-fee rewards redemption program, allowing users to input the amount of points they want to redeem for crypto that can then be transferred to a cryptocurrency wallet

Funding
Seed - Y Combinator

In March, 2017, Brex graduated from Y combinator with $120,000 in funding for its Seed round.

Series A

In April, 2017, Brex held a Series A round of financing which raised $6.5 million. Investors included Y Combinator and Ribbit Capital.

Series B

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.

Series C

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.

Debt Financing

In April of 2019, Brex announced $100 million in debt financing raised from Barclays Investment Bank.

Series C-2

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.

Acquisitions
Elph

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.

Timeline

August 17, 2021
Brex acquires Weav, an Israel-based API platform for commerce sites.
April 28, 2021
Brex raises mega-round and announces a new feature for finance management
April 26, 2021
Brex raises a $425,000,000 series D round from Tiger Global Management.
April 20, 2021
Brex notes that its customers using Instant Payouts also have access to built-in expense management, rewards of up to 8x on every purchase, which can be used to offset the instant payouts fee, and free wire and ACH transfers.

Brex has raised over $400 million in funding and is backed by partners including Y Combinator Continuity, Kleiner Perkins, and the founders of PayPal.

April 2021
The round gives Brex a $7.4 billion valuation--up from $3 billion in 2020 when it raised a $150 million Series C round.
May 20, 2020
Brex Secures $150 Million in Capital from DST, Lone Pine Capital, and Others.

March 24, 2020
Brex acquires three companies to build out its bank alternative for startups.
June 20, 2019
Series C

In October 2018 Brex completed their series C round with $125 million in funding.

June 10, 2019
Brex raises a $100,000,000 series C round from Greenoaks Capital, Kleiner Perkins Caufield & Byers and Y Combinator.
April 2019
Debt financing

Brex secures a $100 million debt financing from Barclays Investment Bank.

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Funding rounds

People

Name
Role
LinkedIn

Abiel Gutierrez

Employee

Andrew Rising

Employee

Brandon Miles

Employee

Elad Gil

Investor

Felipe Rocha

Employee

Fernanda Scheibner

Employee

Henrique Dubugras

Founder

Ignacio Corderi

Employee

Jake Seid

Investor

Justin Mateen

Investor

Michael Corry

Employee

Orion Despo

Employee

Pedro Franceschi

Founder

Sophia Han

Employee

Vince Cogan

Employee

Further reading

Title
Author
Link
Type
Date

Documentaries, videos and podcasts

Title
Date
Link

Companies

Company
CEO
Location
Products/Services

News

Title
Author
Date
Publisher
Description
Natasha Mascarenhas
August 31, 2021
TechCrunch
Today Y Combinator kicked off the Demo Day cycle for its Summer 2021 cohort. The collection of early-stage startups on day one-of-two alone numbered in the hundreds, meaning that we had to assemble a team here at TechCrunch just to cover it all. But before we get into notes on each company that presented, a [...]
JD Alois
August 17, 2021
Crowdfund Insider
Click HERE to find out ⭐ Fintech Brex Purchases Israeli API Platfrom Weav. | Crowdfund Insider: Global Fintech News, including Crowdfunding, Blockchain and more.
Samantha Hurst
May 28, 2021
Crowdfund Insider
Click HERE to find out ⭐ Brex Unveils Integrated Marketing Campaign For Local Business Outreach. | Crowdfund Insider: Global Fintech News, including Crowdfunding, Blockchain and more.
Richard Dal Porto
May 22, 2021
TechCrunch
Welcome back to The TechCrunch Exchange, a weekly startups-and-markets newsletter for your weekend enjoyment.
Melia Russell
May 18, 2021
Business Insider
Brex is looking to expand its customer-base beyond startups, and it's bringing its famed billboards to three new cities to raise brand awareness.
David McMillin
May 12, 2021
Business Insider
Brex customers can now redeem their points for crypto, in addition to using them for travel and gift cards or transferring them to airline partners.
Ryan Weeks
May 12, 2021
The Block
Brex has made its first move into the cryptocurrency sector through the launch of a crypto rewards program.
Alex Wilhelm
May 4, 2021
TechCrunch
Earlier today recent dog-parent Alex Konrad and fellow Forbes staffer Eliza Haverstock broke the news that Divvy, a Utah-based corporate spend unicorn, is considering selling itself to Bill.com for a price that could top $2 billion. For the fintech sector, it's big news. Corporate spend startups including Ramp and Brex are raising rapid-fired rounds at [...]
Annie Siebert
April 30, 2021
TechCrunch
Tech companies in Silicon Valley, the geography, have had an incredible year. But one indicator points to longer-term changes. The internal rate of return (IRR) for companies in other startup hub cities has been even better. A big new analysis by AngelList showed aggregate IRR of 19.4% per year on syndicated deals elsewhere versus 17.5% [...]
Lea Nonninger
April 28, 2021
Business Insider
Brex's premium offering is a one-stop shop for small businesses' financial needs--boosting its value proposition and diversifying its revenue streams.
Anthony Ha
April 26, 2021
TechCrunch
Apple's latest software upgrade brings a big change, Roku accuses Google of anti-competitive behavior and Brex raises a big funding round. This is your Daily Crunch for April 26, 2021. The big story: iOS 14.5 brings privacy changes and more Apple released the latest version of its mobile operating system today, which includes the much-discussed [...]
Alex Wilhelm
April 26, 2021
TechCrunch
Brex, a fintech company that provides corporate cards and spend-management software to businesses, announced earlier today that it closed a $425 million Series D round of capital at a valuation of around $7.4 billion. The new capital came less than a year after Brex raised $150 million at a $2.9 billion pre-money valuation. So, how [...]
Alex Wilhelm
April 26, 2021
TechCrunch
Mere weeks after rival corporate spend startup Ramp announced that it raised a two-part round worth $115 million at a $1.6 billion valuation, this morning Brex disclosed a $425 million Series D led by Tiger Global. The new capital marks Brex's largest fundraise to date, and was compiled at a valuation that is more than [...]
Mary Ann Azevedo
April 26, 2021
TechCrunch
Weav, which is building a universal API for commerce platforms, is emerging from stealth today with $4.3 million in funding from a bevy of investors, and a partnership with Brex. Founded last year by engineers Ambika Acharya, Avikam Agur and Nadav Lidor after participating in the W20 YC batch, Weav joins the wave of fintech [...]
JD Alois
April 26, 2021
Crowdfund Insider
Click HERE to find out ⭐ Fintech Brex Raises $425 Million Series D, Now Valued at Over $7.4 Billion. | Crowdfund Insider: Global Fintech News, including Crowdfunding, Blockchain and more.
JD Alois
April 20, 2021
Crowdfund Insider
Click HERE to find out ⭐ Brex Now Offers Instant Payouts for Firms Using Stripe, PayPal and Square. | Crowdfund Insider: Global Fintech News, including Crowdfunding, Blockchain and more.
Business Insider
February 4, 2021
www.businessinsider.com
A buzzy startup raised $57 million from Peter Thiel and Y Combinator using these 19 slides. Get started by reading the full pitch deck.
CoSell Inc.
December 22, 2020
www.prnewswire.com:443
/PRNewswire/ -- CoSell, a SaaS platform for B2B companies to find customer overlaps with partners to facilitate warms introductions, announced today it has...
Alex Wilhelm
December 19, 2020
TechCrunch
Welcome back to The TechCrunch Exchange, a weekly startups-and-markets newsletter. It's broadly based on the daily column that appears on Extra Crunch, but free, and made for your weekend reading. Want it in your inbox every Saturday? Subscribe here. Ready? Let's talk money, startups and spicy IPO rumors. Sweet dreams are made of IPOs, so merry f****** Christmas We're [...]
Omar Faridi
November 22, 2020
Crowdfund Insider
Silicon Valley Fintech Unicorn Brex's Co-Founder says startup space is booming again in post COVID environment.
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References

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