Company:Brex

From HandWiki
Brex Inc.
TypePrivate
IndustryFintech
FoundedJanuary 2017; 9 years ago (2017-01)
Founders
  • Henrique Dubugras
  • Pedro Franceschi
HeadquartersNo headquarters[1]
Key people
  • Henrique Dubugras
  • (Chairman)
  • Pedro Franceschi
  • (CEO)
[2]
Number of employees
Approximately 1,200 (2024)[3]
Websitebrex.com

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

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 began as a VR startup; however, the founders pivoted the company to fintech 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]

Investors

Brex Inc. investors include Peter Thiel, Ribbit Capital, Y Combinator, DST Global, Kleiner Perkins, Lone Pine Capital, and Greenoaks.[17][18][19][20][21][6]

References

  1. ↑ Calvey, Mark (19 August 2021). "Exclusive: Brex joins Coinbase in embracing no-headquarters model". American City Business Journals. https://www.bizjournals.com/sanfrancisco/news/2021/08/19/exclusive-brex-joins-coinbase-in-embracing-no-hea.html. 
  2. ↑ "Fintech Brex abandons co-CEO model, talks IPO, cash burn and plans for a secondary sale". 12 June 2024. https://techcrunch.com/2024/06/12/fintech-brex-abandons-co-ceo-model-talks-ipo-cash-burn-and-plans-for-a-secondary-sale/. 
  3. ↑ "Tech finance co Brex downsizes". 31 January 2024. https://en.globes.co.il/en/article-tech-finance-co-brex-downsizes-1001469049/. 
  4. ↑ "Brex Small Business Card: If Square Could Work, Is There Potential Here?" (in en-US). 2018-06-19. https://www.paymentsjournal.com/brex-small-business-card-if-square-could-work-is-there-potential-here/. 
  5. ↑ "Home". http://upgradepoints.com/brex. 
  6. ↑ 6.0 6.1 6.2 Azevedo, Mary Ann. "Brex applies for bank charter, taps former Silicon Valley Bank exec as CEO of Brex Bank". TechCrunch. https://techcrunch.com/2021/02/19/brex-applies-for-bank-charter-taps-former-silicon-valley-bank-exec-as-ceo-of-brex-bank/. 
  7. ↑ Schoenberg, Gregg (8 November 2018). "Charge card startup Brex aims for decacorn success". https://techcrunch.com/2018/11/08/charge-card-startup-brex-aims-for-decacorn-success/. 
  8. ↑ "StoneCo. Ltd. Form F-1". https://www.sec.gov/Archives/edgar/data/1745431/000119312518289511/d580263df1.htm. 
  9. ↑ "StoneCo. Ltd. Form 6-K/A". https://www.sec.gov/Archives/edgar/data/1745431/000095010319003973/dp104113_6ka.htm. 
  10. ↑ Rudgeair, Peter (5 October 2018). "The College Dropouts Who Rode Credit Cards Into The Billion-Dollar Startup Club". The Wall Street Journal. https://www.wsj.com/articles/the-college-dropouts-who-rode-credit-cards-into-the-billion-dollar-startup-club-1538740851. 
  11. ↑ Azevedo, Mary Ann (2022-04-13). "Fintech Brex bets big on software, lands DoorDash as a customer" (in en-US). https://techcrunch.com/2022/04/13/brex-spend-management-software-doordash/. 
  12. ↑ Lawler, Ryan (2022-06-17). "Scoop: Brex exiting SMB market to focus on enterprise customers" (in en). https://www.axios.com/pro/fintech-deals/2022/06/17/brex-closing-smb-accounts. 
  13. ↑ Brex. "Brex Names Doug Adamic as Chief Revenue Officer" (in en). https://www.prnewswire.com/news-releases/brex-names-doug-adamic-as-chief-revenue-officer-301598808.html. 
  14. ↑ Son, Hugh (March 10, 2023). "Fintech startup Brex got billions of dollars in Silicon Valley Bank deposits Thursday, source says" (in en). https://www.cnbc.com/2023/03/10/fintech-brex-got-billions-of-dollars-in-silicon-valley-bank-deposits-thursday.html. 
  15. ↑ "4. Brex". May 14, 2024. https://www.cnbc.com/2024/05/14/brex-cnbc-disruptor-50.html. 
  16. ↑ Robison, Kylie (23 January 2024). "Brex, the fintech giant valued at $12.3 billion, announced it will lay off 20% of its staff". https://fortune.com/2024/01/23/brex-announced-it-will-lay-off-20-of-its-staff/. 
  17. ↑ "About Us - Brex". https://www.brex.com/about. "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." 
  18. ↑ "CFOs Will Get Their Own AI Chatbot as Part of Brex Project" (in en). Bloomberg.com. 2023-03-07. https://www.bloomberg.com/news/articles/2023-03-07/brex-to-offer-chatgpt-style-openai-chatbot-for-cfos-finance-professionals. "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." 
  19. ↑ Kruppa, Miles (2021-04-02). "Publicity-shy VC firm Greenoaks has bumper year". Financial Times. https://www.ft.com/content/fee5ec23-daa8-4342-8d0e-06bb2303df05. 
  20. ↑ Insider. "Brex's $57 Million Pitch Deck | Insider". https://www.businessinsider.com/bi-prime-brex-pitch-deck. "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." 
  21. ↑ "Fintech Startup Brex Collects $50 Million Series B" (in en-US). https://www.wsj.com/articles/fintech-startup-brex-collects-50-million-series-b-1529402400. 




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