Brex
 | This article's tone or style may not reflect the encyclopedic tone used on Wikipedia. (February 2020) |
 | |
| Company type | Private |
|---|---|
| Industry | Fintech |
| Founded | January 3, 2017 |
| Founders |
|
| Headquarters | No headquarters[1] |
Key people |
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Number of employees | Approximately 1,200 (2024)[3] |
| Website | brex |
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.[6]
History
[edit]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.[7][8][9]
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.[10]
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.[6]
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] The following year, CNBC ranked Brex fourth on its 2024 Disruptor 50 list.[15]
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.[16]
Growth
[edit]Brex Inc. is backed by Peter Thiel, Ribbit Capital, Y Combinator, DST Global, Kleiner Perkins, Lone Pine Capital, and Greenoaks.[17][18][19][20][21][6]
References
[edit]- ^ Calvey, Mark (19 August 2021). "Exclusive: Brex joins Coinbase in embracing no-headquarters model". American City Business Journals.
- ^ "Fintech Brex abandons co-CEO model, talks IPO, cash burn and plans for a secondary sale". 12 June 2024.
- ^ "Tech finance co Brex downsizes". 31 January 2024.
- ^ "Brex Small Business Card: If Square Could Work, Is There Potential Here?". PaymentsJournal. 2018-06-19. Retrieved 2019-11-19.
- ^ "Home". upgradepoints.com. Retrieved 19 December 2019.
- ^ a b c Azevedo, Mary Ann. "Brex applies for bank charter, taps former Silicon Valley Bank exec as CEO of Brex Bank". TechCrunch.
- ^ Schoenberg, Gregg (8 November 2018). "Charge card startup Brex aims for decacorn success". TechCrunch.
- ^ "StoneCo. Ltd. Form F-1". www.sec.gov. Retrieved 2019-11-19.
- ^ "StoneCo. Ltd. Form 6-K/A". www.sec.gov. Retrieved 2019-11-19.
- ^ Rudgeair, Peter (5 October 2018). "The College Dropouts Who Rode Credit Cards Into The Billion-Dollar Startup Club". The Wall Street Journal.
- ^ Azevedo, Mary Ann (2022-04-13). "Fintech Brex bets big on software, lands DoorDash as a customer". TechCrunch. Retrieved 2022-09-22.
- ^ Lawler, Ryan (2022-06-17). "Scoop: Brex exiting SMB market to focus on enterprise customers". Axios. Retrieved 2022-09-22.
- ^ Brex. "Brex Names Doug Adamic as Chief Revenue Officer". www.prnewswire.com. Retrieved 2022-09-22.
- ^ Son, Hugh (March 10, 2023). "Fintech startup Brex got billions of dollars in Silicon Valley Bank deposits Thursday, source says". CNBC.
- ^ "4. Brex". CNBC. May 14, 2024. Retrieved October 11, 2024.
- ^ Robison, Kylie (23 January 2024). "Brex, the fintech giant valued at $12.3 billion, announced it will lay off 20% of its staff". Fortune.
- ^ "About Us - Brex". brex.com. Archived from the original on 2023-03-07. Retrieved 2023-03-12.
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.
{{cite web}}: CS1 maint: bot: original URL status unknown (link) - ^ "CFOs Will Get Their Own AI Chatbot as Part of Brex Project". Bloomberg.com. 2023-03-07. Retrieved 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.
- ^ Kruppa, Miles (2021-04-02). "Publicity-shy VC firm Greenoaks has bumper year". Financial Times. Retrieved 2021-10-26.
- ^ Insider. "Brex's $57 Million Pitch Deck | Insider". www.businessinsider.com. Retrieved 2023-03-12.
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.
- ^ "Fintech Startup Brex Collects $50 Million Series B". WSJ. Retrieved 2023-03-12.
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