Brex

Brex

Brex is a credit card company that issues corporate credit cards.

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.

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

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.

April 2019

Debt financing

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

April 2018

Series B funding

In April 2018 Brex completed their series B round with $50 million in funding.

April 2017

Series A funding

In April 2017 Brex completed their series A funding round with $6.5 million in funding.

March 2017

Brex graduates from Y combinator.

Funding rounds

Funding round
Funding type
Funding round amount (USD)
Funding round date
Investment
Brex Series C-2
100,000,000
June 10, 2019
50,000,000
April 2018
8 Results
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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

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Author
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Type
Date

Documentaries, videos and podcasts

Title
Date
Link

Companies

Company
CEO
Location
Products/Services

News

Title
Author
Date
Publisher
Description
Omar Faridi
May 30, 2020
Crowdfund Insider
Silicon Valley Fintech Unicorn Brex lays off 62 workers, will "restructure" operations after recently raising $150 million.
Sophia Kunthara
May 29, 2020
Crunchbase News
A little over a week after announcing $150 million in new funding, fintech startup Brex is laying off 62 people.
Natasha Mascarenhas
May 29, 2020
TechCrunch
Brex, last valued at $2.6 billion, is restructuring its credit card for startups business and cut 62 staff members, the co-founders Pedro Franceschi and Henrique Dubugras said in a blog post. "Today we're restructuring the company to better align our priorities with this new reality, while simultaneously accelerating our product vision. With that, I have [...]
Sophia Kunthara
May 28, 2020
Crunchbase News
With the COVID-19 pandemic changing consumer's spending habits, many credit card owners have changed which behaviors they want rewarded.
Omar Faridi
May 20, 2020
Crowdfund Insider
San Francisco based B2B financial products developer Brex secures $150 million in capital from DST, Lone Pine Capital, others.
FinSMEs
May 19, 2020
FinSMEs
About | Advertise | Contact | Disclaimer | News | The Daily Deal Newsletter FinSMEs.com by FinSMEs is licensed under a Creative Commons Attribution-NonCommercial-NoDerivs 3.0 Unported License.
Natasha Mascarenhas
May 19, 2020
TechCrunch
Fast-growing fintech behemoth Brex is raising big money as its customer base itself -- high-growth and spendy startups -- is struggling. The company, which sells a credit card tailored for startups, today announced that it has raised $150 million in a Series C extension from a group of existing investors, including DST Global and Lone [...]
Natasha Mascarenhas
March 24, 2020
TechCrunch
Brex wants to help startups get the money that traditional big banks won't lend them, and it just acquired three companies to help it do so: Neji, Compose Labs and Landria. Per Brex, 12 new people will be joining Brex in total from the three companies. While the San Francisco fintech startup declined to share [...]
Isabelle Kirkwood
March 3, 2020
BetaKit
San Francisco-based Brex, which offers credit cards and cash management accounts to tech companies, has opened its first international office in Vancouver.
Romain Dillet
February 12, 2020
TechCrunch
Meet Ramp, a new startup that offers corporate credit cards with 1.5% cashback on everything. The company thinks that a cashback program combined with an analysis of your payments to help you spend less is more valuable than alternative corporate card offerings Ramp is launching publicly today and has raised $25 million in funding from [...]
Melia Russell
December 17, 2019
Business Insider
A coworking space offers some advantages to young startups, but its drawbacks may outweigh them, said several tech investors.
October 25, 2019
WebWire
Mastercard announced that Brex, the financial technology company that helps ambitious companies scale, has partnered with Mastercard as its preferred network to bring cutting-edge technology and top-tier benefits to its corporate card portfolio in the United States. This is a further investment in a partnership that began earlier this year when Brex started issuing World Elite Mastercard for Business®. Under the program, Brex Mastercard cardholders will receive segment-specific benefits...
Travis Bernard
September 24, 2019
TechCrunch
The community perks for Extra Crunch members just got better with an upgrade to our offer from Brex. Earlier this month we announced that annual Extra Crunch members can get 100,000 Brex Rewards points after signing up for a Brex corporate credit card. Now the offer includes an airline miles transfer program headlined by JetBlue TrueBlue [...]
Business Insider
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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.
Kate Clark
August 8, 2019
TechCrunch
Ramp Financial, led by Capital One-acquired Paribus founders Eric Glyman and Karim Atiyeh, has raised $7 million.
Arman Tabatabai
July 30, 2019
TechCrunch
Welcome to this transcribed edition of The Operators. TechCrunch is beginning to publish podcasts from industry experts, with transcriptions available for Extra Crunch members so you can read the conversation wherever you are.
Emma Comeau
July 2, 2019
TechCrunch
Here comes the 4th of July -- the traditional time for fireworks, picnics and...low, low prices! But seriously folks, our kind of fireworks involves discounts to Disrupt San Francisco 2019 to the tune of an additional $300 off select passes. Founder passes start at $795 and, depending on which pass you purchase, you can save [...]
Romain Dillet
June 20, 2019
TechCrunch
Fintech startup Brex went from 0 to a valuation of $1 billion in less than two years. It is a fascinating company, and so is Brex's co-founder and CEO Henrique Dubugras. He's coming to TechCrunch Disrupt SF to tell us more about the company's explosive growth. Brex started with a corporate card for startups. Compared [...]
Kate Clark
June 11, 2019
TechCrunch
Brex CEO Henrique Dubugras details the fintech startup's latest round.
Kate Clark
May 29, 2019
TechCrunch
Kleiner Perkins is leading the round for Brex.
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References

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