Company:Brex

From HandWiki
Brex
TypeSubsidiary
IndustryFintech
FoundedJanuary 2017; 9 years ago (2017-01)
Founders
  • Henrique Dubugras
  • Pedro Franceschi
HeadquartersSalt Lake City
Key people
  • Henrique Dubugras
  • (Chairman)
  • Pedro Franceschi
  • (CEO)[1]
ProductsCredit cards
Cash management accounts
Spend management software platform
Number of employees
1,100 (2025)[2]
ParentCapital One
Websitebrex.com

Brex, a subsidiary of Capital One, is an American fintech company that offers credit cards and cash management accounts as well as a spend management software platform to startup technology companies.

History

Brex was founded by Brazilian entrepreneurs Henrique Dubugras and Pedro Franceschi, both aged 22, on January 3, 2017.[3] They had previously founded an online payments company, Pagar.me, which they sold to StoneCo in 2016 for "tens of millions".[4]

Brex began as a VR startup. The founders were accepted into the Winter 2017 batch Y Combinator's 12-week accelerator program; 3 weeks in, they pivoted the company to financial technology with the goal of providing credit cards to startups with venture capital funding but with limited credit history.[5]

By August 2018, the company had over 1,000 customers.[3]

In February 2021, the company applied with the Federal Deposit Insurance Corporation and the Utah Department of Financial Institutions (UDFI) to establish Brex Bank. It appointed Bruce Wallace, a former Silicon Valley Bank (SVB) executive as CEO.[6]

In August 2021, the company closed its headquarters in San Francisco and became headquarterless.[7]

In April 2022, Brex launched Brex Empower, a financial software platform to help people comply with their employers' expense policies.[8]

In June 2022, Brex exited the small and midsize businesses (SMB) market, shifting the company's focus to serving enterprise customers.[9]

Brex received billions of dollars in deposits from Silicon Valley Bank customers on March 9, 2023—a day prior to the collapse of Silicon Valley Bank.[10]

In May 2024, CNBC ranked Brex fourth on its 2024 Disruptor 50 list.[11]

In January 2024, Brex laid off 300 employees, or roughly 20% of its workforce due to slowing growth.[12]

In August 2025, the company gained a license to operate in the European Union.[13] That month, the company leased 100,000 square feet in South of Market, San Francisco.[14]

In April 2026, Capital One acquired Brex for $5.15 billion, equal parts cash and stock.[15]

Funding history

Before the acquisition by Capital One, the company raised $2.3 billion in total equity financing.[16]

Micky Malka's Ribbit Capital led Brex's $7 million Series A shortly after its founding in 2017.[16]

In June 2018, the company raised $50 million in a Series B round from Y Combinator Continuity, Ribbit Capital, Peter Thiel, and Max Levchin.[17]

In October 2018, the company raised $125 million in a Series C round at a $1.1 billion valuation. The round was led by Greenoaks Capital, DST Global, and Institutional Venture Partners.[18]

In June 2019, the company raised $100 million in Series C-2 funding at a valuation of $2.6 billion. The round was led by Kleiner Perkins. Existing investors DST Global, Institutional Venture Partners, Y Combinator, and Greenoaks Capital also participated.[19]

In May 2020, the company raised $150 million in a Series C extension.[20]

In April 2021, the company raised $425 million in a Series D round at a $7.4 billion valuation. The round was led by Tiger Global.[21]

In October 2021, the company raised $300 million at a $12.3 billion valuation.[22]

References

  1. ↑ Azevedo, Mary Ann (June 12, 2024). "Fintech Brex abandons co-CEO model, talks IPO, cash burn and plans for a secondary sale". TechCrunch. https://techcrunch.com/2024/06/12/fintech-brex-abandons-co-ceo-model-talks-ipo-cash-burn-and-plans-for-a-secondary-sale/. 
  2. ↑ Owens, Jeremy C. (January 22, 2026). "Capital One to buy S.F. fintech Brex for $5.15 billion". American City Business Journals. https://www.bizjournals.com/sanfrancisco/news/2026/01/22/brex-capital-one-acquisition.html. 
  3. ↑ 3.0 3.1 Russell, Melia (August 4, 2018). "A buzzy startup raised $57 million from Peter Thiel and Y Combinator using these 19 slides". Business Insider. https://www.businessinsider.com/brex-series-b-pitch-deck-fundraising-2018-8. 
  4. ↑ Schoenberg, Gregg (November 8, 2018). "Charge card startup Brex aims for decacorn success". TechCrunch. https://techcrunch.com/2018/11/08/charge-card-startup-brex-aims-for-decacorn-success/. 
  5. ↑ Rudgeair, Peter (October 5, 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. 
  6. ↑ Azevedo, Mary Ann (February 19, 2021). "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. ↑ Calvey, Mark (August 19, 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. 
  8. ↑ Azevedo, Mary Ann (April 13, 2022). "Fintech Brex bets big on software, lands DoorDash as a customer". TechCrunch. https://techcrunch.com/2022/04/13/brex-spend-management-software-doordash/. 
  9. ↑ Lawler, Ryan (June 17, 2022). "Scoop: Brex exiting SMB market to focus on enterprise customers". Axios. https://www.axios.com/pro/fintech-deals/2022/06/17/brex-closing-smb-accounts. 
  10. ↑ Son, Hugh (March 10, 2023). "Fintech startup Brex got billions of dollars in Silicon Valley Bank deposits Thursday, source says". CNBC. https://www.cnbc.com/2023/03/10/fintech-brex-got-billions-of-dollars-in-silicon-valley-bank-deposits-thursday.html. 
  11. ↑ "4. Brex". CNBC. May 14, 2024. https://www.cnbc.com/2024/05/14/brex-cnbc-disruptor-50.html. 
  12. ↑ Robison, Kylie (January 23, 2024). "Brex, the fintech giant valued at $12.3 billion, announced it will lay off 20% of its staff". Fortune. https://fortune.com/2024/01/23/brex-announced-it-will-lay-off-20-of-its-staff/. 
  13. ↑ Bort, Julie (August 7, 2025). "IPO hopeful Brex scored major win to sell in the EU, plans UK expansion". TechCrunch. https://techcrunch.com/2025/08/07/ipo-hopeful-brex-scored-major-win-to-sell-in-the-eu-plans-uk-expansion/. 
  14. ↑ Scheier, Rachel (August 1, 2025). "Years after going 'headquarterless,' this fintech startup returns to San Francisco". CoStar Group. https://www.costar.com/article/1398216231/years-after-going-headquarterless-this-fintech-startup-returns-to-san-francisco. 
  15. ↑ "Capital One Is Buying Startup Brex for $5.15 Billion". CNBC. January 22, 2026. https://www.cnbc.com/2026/01/22/capital-one-is-buying-startup-brex-for-5point15-billion-in-credit-card-firms-latest-deal.html. 
  16. ↑ 16.0 16.1 Loizos, Connie (January 22, 2026). "Capital One acquires Brex for a steep discount to its peak valuation, but early believers are laughing all the way to the bank". TechCrunch. https://techcrunch.com/2026/01/22/capital-one-acquires-brex-for-steep-discount-to-its-peak-valuation-but-early-believers-are-laughing-all-the-way-to-the-bank/. 
  17. ↑ "Fintech Startup Brex Collects $50 Million Series B". The Wall Street Journal. June 19, 2018. https://www.wsj.com/articles/fintech-startup-brex-collects-50-million-series-b-1529402400. 
  18. ↑ Clark, Kate (October 5, 2018). "How the 22-year-old founders of Brex built a billion-dollar business in less than 2 years". TechCrunch. https://techcrunch.com/2018/10/05/how-the-22-year-old-founders-of-brex-built-a-billion-dollar-business-in-less-than-2-years/. 
  19. ↑ Clark, Kate (June 11, 2019). "Brex valued at $2.6B with new cash from Kleiner Perkins". TechCrunch. https://techcrunch.com/2019/06/11/brex-series-c2/. 
  20. ↑ Mascarenhas, Natasha (May 19, 2020). "Brex brings on $150M in new cash in case of an 'extended recession'". TechCrunch. https://techcrunch.com/2020/05/19/brex-brings-on-150m-in-new-cash-in-case-of-an-extended-recession/. 
  21. ↑ Wilhelm, Alex (April 26, 2021). "Brex raises $425M at a $7.4B valuation, as the corporate spend war rages on". TechCrunch. https://techcrunch.com/2021/04/26/brex-raises-425m-at-a-7-4b-valuation-as-the-corporate-spend-war-rages-on/. 
  22. ↑ Azevedo, Mary Ann (October 21, 2021). "Brex just signed a term sheet for $300M at a $12.3B valuation". TechCrunch. https://techcrunch.com/2021/10/21/brex-raises-300m-at-a-12-3b-valuation/. 



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